Everything you need to know about health insurance

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Health insurance is something we all know about, but if you are someone who has heard about them, and do not possess the required knowledge to buy one. Then this article is for you, we will discuss in detail everything you need to know about health insurance.
What is health insurance?
Health insurance can be understood as a safety net that would protect you in case of a medical emergency. Health insurance covers your medical expenses in case of an illness, accident, or hospitalization. It can be understood as a contract between an insurer and the insured, under this contract the insurer would have to bear medical expenses for the amount stated in the contract. This is against the premium that has been paid by the insured person. There are two basic types of health insurance –

  • Cashless treatment – where you don’t have to pay a single dime and is taken care of by the insurance company.
  • Reimbursement – under this you pay your medical expenses and later they would provide reimbursement.


  • 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. A medical emergency can arise any day if you are young and there are low chances of falling ill, but never zero if you go through an accident, it could cost you a big fat bill. Also, medical expenses have been rising on a daily basis, and good healthcare is very expensive. Not only for oneself, but you would also need to buy for your family as well. 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-

  • Enables you to get quality healthcare without worrying about the high costs
  • Protect savings from an unexpected medical emergency
  • Provides tax benefits.


  • 3. When to buy health insurance: Now or later?
    The sooner, the better. The early you buy the better deal you get –

    In the 20s
    It is possibly the best age to buy health insurance. You are likely to be in the best health condition, and you would also have limited financial responsibilities. Also, buying health insurance at an early stage has its own advantages such as a better insurance policy for a lower premium amount, no medical test, etc.

    In the 30s
    This is the phase you settle down. You may be married and would have started a family, but your financial responsibilities increase. Also, you may be prone to lifestyle diseases. So be ready for a higher premium.

    40 to 60
    A stage where your financial responsibilities are at their peak. And if you have fallen prey to any of the diseases such as diabetes or BP, would result in a higher premium. Also, you would need to go through medical screening, and you would have to pay a high premium that’s for sure.

    Senior citizen – You will need a high sum insured that comes with a higher premium. Also, as a senior citizen, you are prone to more critical illness. It would be better if you compare all the policies available before purchasing any. Also, this would come with a co-pay agreement, in which you would have to bear a part of medical expense

    In closing – We have mentioned everything you need to know about health insurance, it would be better if you buy it early, also a cashless option would be preferable while purchasing insurance. And make sure you read all the related documents before purchasing health insurance.

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