Health Insurance

Health Insurance – What is Health Insurance and Why is it Important? Health insurance provides immediate financial help when confronted with a medical emergency. Health insurance is a financial tool or financial safety net that enables coverage for medical expenses. A financial protection against medical cost is assured by the insurance company to the policy holder in return for the premium. Along with financial security it provides mental well being.

Insurance

Insurance – Insurance is a contract between an individual or/and group of individual as the case may be & insurance company to provide financial protection and mitigate the risk associated with certain situation or event.

Health insurance can be purchased by paying premium, and premium varies on various factors like age, health conditions, pre existing disease if any, and the amount of the policy. The main attraction of health insurance is cash less treatment or quick reimbursement of claim whatever it may be. Health insurance is part of financial planning and it should be considered as investment. Most of us push it behind as unnecessary expenses, but in case of any medical emergency it will be proved as major breakthrough.  This financial support ensures quality health care without stress.

Choose health insurance, if you want your hard earned money do not wiped due to medical expenses.

Types of health Insurance

Individual – Individual health insurance provides financial protection and health coverage individually. Premium under this policy is determined as per the age, medical history and etc. of the insured.

Family Floater – In this type of family floater health insurance, it covers the entire family and includes spouse, parents and children. Any family member so insured under family floater have right to claim compensations in case of medical emergency under a single sum insured. Premium under this policy is determined as per the age of the oldest member of the family, comparatively the premium is lower than the individual plan. The sum assured floats for all the members and shared.

Top up – It provides additional coverage beyond the limit of the existing policy. Purchase of top up health insurance plan is to enhance policy limit at a nominal price. It provides additional financial support that needs higher medical expenses.  Rising cost of medical treatment, top up policy would be a wise investment.

Personal Accident – In this type of personal accident health insurance financial support in case of death, permanent disability or temporary disability.

Why is it Important

Protect your money – Medical emergency can deplete your savings and investment or push you into debt. Health insurance is your financial safeguard insuring your savings are reserved. With health insurance plan, you don’t have to worry about unforeseen medical expenses as it covers your all such expenses. In most of the cases it is observed that there are years when policy holders do not claim any medical expenses hence the benefits of “No Claim Bonus” for every claim free   year had been introduced by the insurance companies. If you are paying for health insurance premium than you can claim a tax benefit U/S 80 D of The Income Tax Act, 1961. In this way you can save.

Safeguard your family – If you are opting family health insurance policy, you ensure that your family members are protected against medical emergency. If it is yours ageing parents or dependent children or spouse those needs protection from health conditions, health insurance cover them all.

Quality Health Care – Without worrying about the financial burden of treatment health insurance gives you the freedom to access best quality of health care solution. In absence of health insurance you may have to compromise with physician and healthcare centre.

Cashless Claim – Cashless claim saves you from arranging fund for treatment and you need not have the burden to claim for reimbursements if you are getting treatment from a network hospital with the concerned insurance company. You just need to provide your health card and policy information to the network hospital and the hospital staff manage the rest of the affairs with the insurer.

Preventive Care – Preventive health care allow people to know about health issue within time. A range of preventive health care package would help you to stress free life. You can be benefited from medical consultation, annual checkup and many more. Preventive care includes wellness program, vaccination, screening, and counseling at no cost from an in-network hospital.

Inflating medical cost – Than the general inflation, medical inflation is increasing and cost of health care is rising like anything and as result hospital bill and treatment cost are expanding in comparison to other commodities and services. Without health insurance, managing these inflating costs may be challenging.

Critical Illness – Health insurance covers all most all critical illness such as cancer, heart attack, and other critical illness, which provides you access to related treatment without financial burden.

Peace of Mind – If you are convinced a health insurance policy is there and you are financially secure during medical emergencies provides peace of mind.

Tax Benefits – Health insurance provide policy holder tax deduction U/S 80D of The Income Act, 1961. These tax rebates are due to the premium paid toward health insurance.

What is Health Insurance Claim?

A formal request by the policy holder to the insurance company regarding the cost of medical treatment or hospitalization is claim. Claims generally are of two types

Cashless Claims – The insurance company pays the hospital directly for treatment from a network hospital, Policy holder need not have to pay any medical bill aside from the deductibles or co-pay.

Reimbursements – The policy holder pay the medical bill out-of-pocket and then submit the medical bills to the insurance company for reimbursement, the insurance company verify the documents and medical bills for the said claim and reimburse eligible expenses directly to the bank account.

Conclusion

Most of us push it behind as unnecessary expenses, but in case of any medical emergency it will be proved as major breakthrough.  This financial support ensures quality health care without stress. Choose health insurance, if you want your hard earned money do not wiped due to medical expenses. Health insurance is one of the tools of financial planning.