What is Health Insurance? and How does It help?

 

What is Health Insurance? and How does It help?

 

Introduction

Medical and surgical expenditures for an insured person are covered by health insurance. Depending on the circumstances of the policy, the insured may pay out of pocket and be repaid later, or the insurance provider may repay costs immediately. Health insurance is a sort of insurance that pays for medical costs incurred as a result of an illness. These charges might include hospitalized fees, prescription prices, or doctor consultation fees. We can deeply look about health insurance and how does it help us in critical conditions.

 

What is health insurance?

The health insurance coverage pays for a person's medical bill. It pays the insured individual's care provider directly or reimburses expenditures spent due to sudden illness or accident.

 

Types of health insurance

Every person is different and has their own set of requirements. A single health insurance policy is insufficient to meet the needs of each individual. This is just where a variety of different sorts of health insurance policies are offered. Let's have a peek at what they're all about:

Individual health insurance:

Individual health insurance plans can be obtained to cover you, your spouse, your kids, and your family. Hospitalization, childcare operations, hospital room rent, and other medical fees are typically included in this insurance. Each participant of an individual health insurance plan has their amounts insured.

Family Floater Health Insurance:

A family floater plan lets you cover all members of your family under one policy, and everyone shares the amount covered. Because the money insured is pooled, these policies are often less expensive than individual plans. Family floater plans are often best for young families.

Senior Citizens Health Insurance:

These health plans have been specifically created with senior adults' health needs and demands in consideration. Most senior citizen insurance provides extra benefits like residential care hospitalization and even mental coverage. Because elderly people are more prone to have health problems, such plans may need a comprehensive medical examination and may be more expensive than standard insurance plans.

Critical Illness Insurance:

Cancer, stroke, renal failure, and cardiovascular issues can be extremely costly to treat and manage in the long run. They are offered as a rider or add-on to your existing health insurance plan or as a stand-alone policy. These plans cover particularly specific illnesses and frequently payout claims as a single cash payment following a critical illness diagnosis.

Group Health Insurance:

Group health insurance plans, unlike individual and family floater policies, can be obtained by a group manager for a large number of people. For example, a company can buy group insurance for all of their employees, or a building secretary can buy it for all of the building's tenants. These plans are reasonably priced, but they generally only cover basic health problems. Employers frequently purchase this insurance as a perk for their staff.

 

How health insurance helps us?

Health insurance is necessary for a variety of reasons. Let's look at some of the most crucial features of our health insurance plans:

Helps Deal with Rising Medical Costs:

People get health insurance to protect their wallets from ever-increasing medical bills. An incident or medical problem might cost you thousands of rupees. You may obtain coverage for anything from ambulance fees to childcare operations with a medical insurance plan, making it easier to get the care you need to heal.

Critical Illness Cover:

Many health insurance policies include coverage for critical diseases for an additional charge. This is an important insurance to have nowadays, given the increased prevalence of lifestyle-related disorders. If you are diagnosed with one of the listed serious diseases, you will get a cash payment. Because dealing with and managing these problems may be highly costly, critical illness coverage is an important part of having health insurance.

Easy Cashless Claims:

Every health insurance company will have a network of hospitals with whom you may make cashless claims. This makes seeking emergency medical treatment much simpler. You are not obliged to pay for any of the approved procedures at a network hospital. Except for non-covered costs and obligatory deductibles, we will reimburse all medical costs for all legitimate claims.

Added Protection:

You may ask why you should get your health insurance policy if you are covered by a corporate health insurance plan. Individual health insurance policies, on either hand, give ever-greater coverage to providers than health plans. Furthermore, if you depart the group at any point, you risk losing your coverage, putting you and your funds in danger.

Tax savings:

Premiums paid to maintain health insurance plans are eligible for tax deductions under Section 80D of the Income Tax Act of 1961. You can deduct up to INR 25,000 per year from your taxable income for a policy for yourself, your spouse, your children, and your parents under the age limit of 60. You can claim an extra INR 50,000 discount if you also buy coverage for a spouse over the age of 60.

 

How to choose the best plan?

Someone who has purchased health insurance will tell you it is one of the wisest financial decisions anyone can make. Now that you've decided to get health insurance, you'll need to know to choose a decent plan that will cover all of your requirements. A decent health insurance plan should have the following features:

·        Protection from a wide range of serious diseases.

·        The ability to pick and select your health insurance.

·        Even if your medical problem changes throughout the insurance period, there will be no change in premiums.

·        Long-term coverage that keeps you covered even as you become older; a large hospital network for fast access to medical care.

 

Conclusion

When comparing the two alternatives, you'll see that health insurance plans and critical illness policies provide extremely different advantages. If you're going to buy a policy, it's a smart option to have normal medical insurance with critical illness coverage added on. You'll need both to protect your finances in the event that something bad is happening to you.