Health / Medical insurance introduction, benefits, importance, plans and all types in details by Get Do Help.
Many of us are not aware that what Health Insurance is. Actually we as an Indians are having not a good perception about Insurance. It can be any kind of Insurance. We are only concern about the Vehicle Insurance because it’s a crime if you are driving a vehicle on road without insurance and if you caught by a cop than you have to pay the penalty. It means there is a fear and force behind it. In Life Insurance and Health Insurance, there is no force or fear because it is an individual choice. But we need to understand that “Health is Wealth.”
Insurance means protection from financial loss or loss of life.
Health Insurance is one of the types of Insurance. It’s comes under general insurance category. Health Insurance popularly known as Medical Insurance or Mediclaim. In many countries Health Insurance is compulsory. Now day’s Indian government also promotes health insurance by providing a deduction from income tax under section 80(D).
What is Health Insurance
Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.
The individual, also known as the insured, pays a fixed sum (premium), every year for the health cover.
If a medical problem occurs than the insured is reimbursed by the Health Insurance Company either directly in cash or indirectly through payment to the hospital / clinic.
Importance of Health Insurance
Medical emergency comes silently without knocking. For such kind of thing, we should be prepared and if we are not prepared enough than might be we have to pay more expenses to the doctors / hospitals against the policy premium. Today, when the medical inflation rates are so high, it is very difficult to take treatment in a good hospital for middle class. Market of health insurance is very good in most of the countries but in India is remains an untapped market due to unawareness.
For every individual, Health Insurance has become a necessity and even I felt that Health Insurance is more important than Life Insurance. Buying a health insurance policy for yourself and your family is important because medical care is expensive, especially in the private sector. For middle class, it is very difficult to bear medical expenses. It will become even tough, if the person who brings in the money, is now in a hospital bed. All this can be avoided by just paying a small annual premium which would lessen your stress in case of medical emergencies.
A good health insurance policy would usually cover expenses made towards doctor consultation fees, costs towards medical tests, ambulance charges, hospitalization costs and even post-hospitalization recovery costs to a certain extent.
Health Insurance Plan
Individual Health Insurance Plan: If a person individually is taking policy covers for himself is called Individual Health Insurance. It includes health expenses and hospitalization expenses of individual who has taken the policy. Premium under this policy is determined as per the age of insured.
Family Health Insurance Plan: Under this policy, an individual can include all the family members against multiple diseases under a single cover. Family health plan offers a fixed sum assured for the family members, which can be availed by all members of the family or by any one individual in the family.
Senior Citizen Health insurance Plan: This policy is designed for the senior citizens or individuals over 60 years of age offering protection from health issues during old age. In this category, premium is very high due to age factor.
Surgery and Critical illness Insurance Plan: This plan is suitable for the insured that requires treatment against critical illness, such as Cancer, Heart Attack, Kidney failure, paralysis, etc. As the medical expenses of these treatments are very high, the premium applicable to these types of policies is also high.
Maternity Health Insurance Plan: This policy covers costs, including pre and postnatal care, child delivery expenses of newborn babies. This policy is also covered for the newborn up to a certain period of time as mentioned in the plan. Ambulance costs are also covered.
Personal Accident Plan: This policy covers hospitalization expenses in the event of an accident. Premium amount is depending upon the amount of cover taken.
Unit Linked Health Plan: These plans offer a unique combination of insurance and savings both at the same time. This policy helps in building a corpus which can be used to meet those expenditures which are not covered by the insurance policy.
Types of Health Insurance
Mainly there are two types of Insurance plans available in the market. One is sum insured and second one is Floater policy. This is customer’s choice that what type of policy he need. We will understand both the terms in detail.
Sum Insured: Sum insured is a pre-decided amount that the insurance company pays to the policyholder when the insured event takes place. It is known as Individual Insurance Policy also.
For example, an individual buys a Health Insurance policy that offers a sum insured of Rs. 1 Lac. Now, in case of the insured person’s hospitalization any bill amounting to less than Rs. 1 Lac will be entirely paid by the insurance company. However, if the bill amount exceeds Rs. 1 Lac, then the insurer will be liable to pay only Rs. 1 lac and the remainder will have to be borne by the policyholder.
Floater: In Floater Plan, the limit of the insurance policy can be utilised by any family member. It is known as Family Health Insurance policy.
For example, if you buy a family health plan of Rs. 3 Lac then any member can utilise the entire limit. But if one has fully used that float, then for that year, insurance company will not pay anything if either the same person or someone else family incurs hospitalization cost.
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