What is health insurance?

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Health insurance is a must-buy in all of our lives, but a lot of people are not aware of health insurance and its benefits. And also, people don’t understand that health insurance is a basic necessity.

1] What is health insurance?
Health insurance can be understood as a shield that would protect you in case of a medical emergency. Health insurance would help you by covering your medical expenses, in case of a serious illness, accident, or hospitalization. Also, along with you, it would protect your family if you have a family cover. In simple terms, health insurance can be understood as a contract between an insurer and an insured, under this contract the insurer would have to bear medical expenses for the amount stated in the contract. This insurance is provided against a premium paid by the insured. Health insurance has 2 basic compensation options –

1. Cashless treatment- where you don’t have to pay a single dime and is taken care of by the insurance company.

2. Reimbursement- under this you pay your medical expenses and later they would provide reimbursement.

A cashless treatment may be a better option because if you choose reimbursement you would have to arrange for money in the first place and reimbursement can take a while.

2] Why do you need Health Insurance?
Buying health insurance is a necessity in life, but many people don’t do it until it’s too late. An unexpected medical emergency can arise any day, and so it’s better to stay ready. If you are young, you may be feeling that you don’t need health insurance as there are very low chances of you falling ill, but it’s the best time, as you would get insurance at a cheaper rate, and your claim years can be used late. Also, the cost of good healthcare treatment is very expensive and could cost your life savings. It’s better to have health insurance so that you can afford the best healthcare for you and your family. And also, there are dual benefits for health insurance, you secure your health as well as you get tax benefits.

So, in short, health insurance is needed as-
1. Enables you to get quality healthcare without worrying about the high costs
2. Protect savings from an unexpected medical emergency
3. Provides tax benefits.

Conclusion- So, in this article, we have talked about what is health insurance and why you need health insurance. So make sure you buy health insurance.

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