Imagine a scenario where a dear one is admitted to a hospital on account of an accident or sudden illness and emergency surgery is needed to save his life. These types of situations are unplanned and expensive and this is why having good health insurance coverage is a vital part of your personal and family security.
Health Insurance can help you manage the increasing cost of health care by paying for doctor’s bills, medical treatment, cost of medicines and hospital charges. There are different Health Insurance plans that you can invest in e.g. Individual Health Insurance, Family health insurance plans, Senior Citizens health plans etc.
To find out more read on.
How does Health Insurance work?
You will need to purchase a policy from a reputable Health Insurance Provider and pay small monthly or yearly premiums. If something were to happen to you or your family (depending on your plan coverage) the insurance agency bears the health care expense.
There are broadly two kinds of health insurance plans in the market.
1. The first kind reimburses the actual expenditure up to a certain limit. Most of the plans are of this type.
2. The other kind is based on lumpsum benefits. These policies provide a defined amount of money irrespective of the actual amount spent.
Some of the examples are:
a. Hospital cash benefit plans
In this plan you get a fixed amount for each day of hospitalization irrespective of the actual expenses one may incur. The benefit is given only after discharge and showing proof of the number of days spent in the hospital.
b. Critical Illness plan
This policy covers a list of particular illnesses. For more information you might want to look at the Policy Bazaar comprehensive list here.
Some of the other types of policies are Individual and Family Floater policies.
These policies provide you with actual reimbursement of money and not fixed amount. An important point to note is these policies cover only In-patient hospitalization expenses i.e. a person will need to get admitted in the hospital. Several procedures like X-rays, CT scans, blood tests and other tests which don’t require staying in the hospital are not covered in this policy.
1. Individual Health Insurance Policy
An individual policy just covers an individual. The premium is dependent on the persons health and past medical history.
2. Family Floater Health Insurance policy
This is a joint cover for the whole family e.g. Husband, wife, children and parents. The whole sum assured is shared by all and can be utilised by any number of people in the group with the upper limit as the sum assured.
Health Insurance depends upon your age. The older you are the higher is the cost of insurance. Thus it is essential to take up a health insurance policy, early on in life. After the age of 45 years, the premiums are very high.
Please do read our other article How to buy right Health Insurance policy.
To buy , Please click here Smart Deals.
For more information please feel free to check out the resources below:
3 Pillars of Financial Security (Life, Insurance, Health Insurance and Emergency Fund) Manish Chauhan – To buy from Amazon Click here.
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