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. Health insurance is also known as medical insurance.
Table Of Contents
1. What is Health Insurance?
2. Why do you need Health Insurance?
3. Types of Health Insurance
4. Conclusion
What is Health Insurance?
Health insurance can be understood as a shield that would protect you in case of a medical emergency. Medical 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, medical 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. It 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.
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 medical 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, medical 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.
Types of Health Insurance
There are different types of health insurance available according to the needs of the individual. Lets understand the types
1. Individual Health Insurance
If you buy individual health insurance then it only covers a single person that can be you, your wife, your children or your parents. In this type of medical insurance the expense of hospitalization, day care procedures, hospital room rent and much more. In individual medical insurance there is a sum of money insured for each individual.
2. Family Floater Health Insurance
In family floater health insurance you can cover your family members under a single policy. The amount in this case is shared between the family members. This medical insurance is cheaper than individual medical insurance because you can share the amount with your family members.
3. Senior Citizen Health Insurance
These medical insurance are designed according to the needs of the senior citizen. As senior citizens are more prone to illness so full body checkup is done. This is costlier than regular health insurance.
4. Group Health Insurance
Group health insurance is purchased by a group manager for a large number of people. It is different from individual and family floater medical insurance. These plans are far cheaper but it only includes basic health checkups. It can be bought by an employer for their employees or by a secretary for their society.
5. Critical Illness Health Insurance
This type of medical insurance is introduced for illnesses like cancer, stroke, kidney failure and cardiac diseases. These diseases are lifestyle diseases and it can financially affect you very badly in terms of treatment so to avoid such big losses critical health insurance is brought. This reimbursement is done by giving a large sum at a single time after the treatment.
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. One should buy health insurance at an early age because as you grow the premium also grows.