Insurance is your best friend at the time of need. There are crucial times when you are devoid of support and it’s possible to experience this when you need it the most. A good insurance policy can be your friend. Health insurance has become a part of life for city dwellers in India, where the cost of bearing medical expenses can badly affect your economic dream.
Searching for loan, seeking donations might not be something you’d like to do at the time of need, especially when you’re dealing with illness of self or family members. Therefore, choosing the right health insurance policy is your right decision.
What is Health Insurance?
Health insurance or Medical insurance is an insurance scheme that covers the cost of an insured individual’s medical and surgical expenses. Depending on the type of coverage, either the insured pays the costs out-of-pocket which are then reimbursed, or the insurer makes payments directly to the provider.
With the introduction of advanced health care facilities in India, there has been a parallel increase in the costs that individuals are required to pay. This has led to a growing popularity of purchasing health insurance policies.
Mentioned below are the common types of health insurance policies that you must know about:
Types of Health Insurances:
- Hospitalization plans: Hospitalization plans reimburse the hospitalization and medical costs of the insured subject to the sum insured. For this reason, the plans are also known as indemnity plans.
- Hospital daily cash benefit plan: This is a Benefit policy that pays out a defined sum of money for every single day of hospitalization, regardless of actual costs.
- Critical illness plan: These are benefit-based health insurance plans which pay a lump sum amount on the diagnosis of predefined critical illnesses and medical procedures. The illnesses are specified at the outset.
- Family Floater Health Insurance: The complete family is covered under one policy.
Other policies are-
- Senior Citizen Health Insurance
- Maternity Health Insurance
- Critical illness plan
Health Insurance plan also provides you tax benefit as per law of State.
Why do you need health insurance?
As medical care advances and treatments increase, health care costs also increase. The purpose of health insurance is to protect you and your family financially in the event of an unexpected serious illness or injury that could be very expensive. In addition, you are more likely to get routine and preventive care if you have health insurance.
You need health insurance because you cannot predict what your medical bills would be in case of an emergency. In some years, your costs may be low. In other years, you may have very high medical expenses. If you have health insurance, you will have peace of mind in knowing that you are protected from most of these costs. You should not wait until you or a family member becomes seriously ill to purchase health insurance.
We also know that there is a link between having health insurance and receiving better health care. Research shows that people with health insurance are more likely to have a regular doctor to consult when they need it.
How health insurance works?
- Cashless – Every insurance company has a network of Hospitals where they have a direct billing arrangement. In such cases, insurance companies directly pay the admissible claim amount to the hospital. When the insured person is admitted in a network Hospital, he/she or his/her relative would need to just submit his/her cashless card to the hospital billing desk, who will process cashless admission for the patient, subject to approval by the insurance company. In such cases, the insured person will only have to pay the expenses which are not covered under the Health Insurance Policy.
- Reimbursement – In case you happen to be admitted in a hospital which is not in the network of your insurance company, you will have to make all payments on your own to the hospital, and then submit these original papers along with the claim form to the insurance company for reimbursement.