What is Health Insurance?

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Health insurance, also termed as medical insurance policy, provides medical expenses to the policyholder in case of injuries or illnesses. There are several additional benefits of health insurance policies too. If one has good health insurance plans in place, they need not worry about any financial trouble in case of hospitalization.

Importance of Health Insurance

  • With the advent of capitalism, it has become impossible for a layman to find good medical care without falling into debt. Medical inflation is  proceeding with leaps and bounds. Even for a minor issue like cough or cold, a trip to the hospital would rack up expenses of unimaginable heights.
  • The human body is strong as well as fragile. Scientists are discovering new diseases every day. The global pandemic has made us realize the importance of human life and how easily it can be taken from us. Changing lifestyles in the modern world has also introduced new kinds of diseases. Hospital check ups have become a necessity.
  • Healthcare policies will cover any medical expenses faced by the policyholders in exchange for periodic payments made according to the terms of the policy.

Benefits of Health Insurance

There are many benefits of purchasing a suitable health insurance plan.

  • Hospitalization expenses

Health insurance covers hospitalization charges if the disease was not previously diagnosed while buying the plan. For critical illness, some insurance companies may provide compensation greater than the sum of money insured. Unforeseen circumstances like accidents are also covered.

  • Pre and post Hospitalization expenses

Expenses before hospitalization, like doctor’s fees and diagnosis expenses are covered by healthcare insurance.

Expenses after hospitalization like medication, check ups, are also covered by healthcare insurance.

Compensation can be collected lump sum or by showing respective bills.

  • No cap on ICU room charges

ICU room charges are also covered by insurance companies up to or even extending the insured amount. In case the patient decides to opt for the private room, the insurance provider would be billed.

  • Mental illness cover

Mental health issues are on the rise globally. People are becoming more aware of the challenges caused by mental illness. Healthcare insurance companies have also started to cover psychiatric treatment.

  • Bariatric Surgery Costs

Obesity is the precursor to many related health problems. Some insurance companies provide medical expenses for clients who have undergone surgery for obesity. This surgery improves the overall health of the client.

  • No Room Rent Capping

Room rent during hospitalization is covered by healthcare insurance plans. This means that a patient can recover in comfort without any worries.

  • Daycare Treatments

Expenses for daycare treatment at hospitals like cataract, tonsillectomy, dialysis, etc are covered by most health insurance plans.

  • Ambulance Expenses

Ambulance charges, which are the result of medical emergencies, are also covered by insurance providers.

  • Refill Sum Insured

Under some health insurance policies, a person can make claims up to twice per year, keeping in mind that the claims were made for different kinds of medical conditions.

  • No Claim Bonus

If a person does not make any claim in a year, then they are offered discounts or higher insurance for the succeeding years. This might lead to a lesser amount of sum payable yearly or higher insurance coverage.

  • Daily Hospital Cash Allowance

Some insurance policies also cover daily allowance during the time of hospitalization since a person might lose wages while being at the hospital.

  • No co-payment by patient

Some health policies provide zero charges for the patients, which means that the whole cost of hospitalization is covered by the insurance providers and the patient does not have to pay an additional dime themselves.

  • Zone upgrade Facility

A person can upgrade to different zones to make use of their healthcare facilities without additional expenses. This is beneficial because hospitalization costs in metropolitan cities are tremendously high.

  • Organ Donation Expenses

Claims can also be made by patients relating to organ donation charges. Most insurance providers cover this.

Types of Health Insurance

The most common health insurance policies that a person can avail are given below:

  • Individual Health Insurance

An individual Health Insurance, as the name suggests, can be used by individuals to cover their singular medical expenses. Separate policies are made up for family members.

  • Family Floater Health Insurance

For this type of plan, treatment of all members of the family are covered under a single plan. Treatment of any one person can be covered by this type of plan. Senior citizens cannot be added to this plan since their healthcare needs are different.

  • Senior Citizen Health Insurance

This type of insurance is specifically designed for people over sixty years to protect them from a comprehensive array of diseases.

  • Group Health Insurance

This is mainly undertaken by companies for their employees. The periodical payment is done by the company itself. This cannot be availed by the employee if they have been terminated or left the company voluntarily.

  • Health Insurance along with Maternity Insurance

This can be used to reimburse for pre and postnatal care. All care expenses required during pregnancy are covered by this. The new born’s medical bills are also covered up to a specific time period.

  • Critical Illness

Critical illness comes with extensive medical expenses. This type of insurance provides financial support for treatment and recovery. But this can only be availed if a person is sure to survive for thirty days after diagnosis.

  • Top-Up health insurance

In case a single Insurance policy is unable to cover all the medical expenses, a person can opt for a top up instead of purchasing another insurance policy. This increases the overall sum of the insurance policy.

Research before buying Health Insurance

Adequate research must be conducted before buying Health Insurance in order to ensure that the policyholder is deriving maximum benefit. Some of the common factors to be kept in mind are:

  • Benefits of the policy and the sum insured.
  • Reputation of the insurance company in the market.
  • Hospitals in the network which prefer cashless claims.
  • Provision for routine check up.
  • Renewability of policy.

Choosing the right plan is the most important part of purchasing health insurance. In this case a person would have an upper hand over any unexpected medical case.


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