What is Health Insurance ?
About Health Insurance
Health insurance is an insurance against the future medical expenses of a person and ensures that you get cashless treatment or expense reimbursement, in case you fall ill. This means that when someone takes a health insurance plan he or she expects a certain amount of medical expense to be there in future and that person is paying for that in the present in the form of nominal premium. A health insurance policy reimburses the insured for medical and surgical expenses arising from an illness or injury that leads to hospitalization. The main aim of a health insurance plan is to make sure that people have enough money to take care of their emergency medical requirements when they fall ill or when they get old.
However, a health insurance policy does not always cover every possible health problem someone might encounter in the future. There are certain terms and conditions agreed to by the person who is taking the plan, the insurance company that is providing the plan and the entire procedure happens according to what has been agreed to in the contract.
Importance of Health Insurance
Now a day’s living in this fast-paced and competitive world is becoming increasingly stressful and resulting in major health conditions especially among Indians which is alarming. Millions of them lose their lives to heart diseases, diabetes, and other chronic diseases, which, according to a report by WHO is the leading cause of death in India. Apart from that, respiratory diseases, cancer, kidney failure, hypertension, birth complications, and infectious diseases are also rampant.
Given that we Indians are more prone to serious health conditions, and rising health care costs may result in financial difficulty. The question here arises is “have you ever considered protecting your family and yourself against these against this scenario? An excellent way to prepare for such situations is to avail of health insurance policies.
Health Insurance is very well established in many countries, but in India, it is still an untapped and unexplored market. It is one of the fastest-growing industries. However, this wide scope for growth indicates the limited penetration of health insurance among the Indian population. Less than 20% of India’s population is covered through health insurance. Imagine, at any given point of time, on an average 45 to 50 million people are on medication for major sickness. Only 18 percent of the total population residing in urban areas and 14 percent of the total population residing in rural areas had any form of health insurance converge. Over 80% of health financing is private financing, much of which is out of pocket payments and not by any pre-payment schemes. Given the health financing and demand scenario, health insurance has a wider scope in the present-day situation in India. However, it requires careful and significant efforts to tap the Indian health insurance market with proper understanding and training.
Thus, there is no debating the importance of having insurance in a country like India where medical expenses are skyrocketing. Everyone must buy a good health insurance policy that includes medical costs, hospitalization costs, medication and laboratory tests costs, including critical illness.
Types of Health Insurance Policies available in India
Everyone needs to secure their own and their family’s health. With the increasing cost of healthcare in India, buying health insurance policy has become almost mandatory for everyone. In today’s world of options, people have different choices when it comes to purchasing health insurance. There are various plans readily available in India to include every aspect of a medical emergency. Some popular types of policies are listed below:
- Individual Health Insurance policy
- Family Health Plan
- Critical Illness Insurance Cover
- Senior Citizen Health Insurance Policy
- Personal Accident Cover
- Maternity Health Insurance
- Unit Linked Health Plans
- Cardiac Care and Diabetes Safe Insurance Policy
- Group Health Insurance Policy
Advantages & Features of Health Insurance
As stated above, healthcare in present days is increasing at a rampant rate while individual earnings may not match up to that level. A person who is having limited pay and looking for frequent health checkups or say medical emergencies may not be able to bear the costs associated.
Imagine a person who is married having two kids and whose earning is limited is diagnosed with a serious disease, and has not taken any Health Insurance. He needs to be hospitalized for treatment and the expense incurred is around 3 lakhs, which at that moment he is not in a condition to pay. He is left with no option either to borrow the money from family or friends or take a loan which is again a burden to repay the loan with interest. This leaves his family in the grief of monetary burden for the long term. He somehow is trying to overcome the financial burden, but after a few months, his wife meets with an accident which makes him suffer more to arrange money for medical attention. This situation breaks him down and he suffers a lot for his financial condition.
For instance, if he had opted for any health insurance with a family floater plan covering himself, his wife and child with coverage of say 5 lakhs, his and his wife’s medical bills would have been paid by the company for which he would have not suffered this much.
This is a small instance many of us have had undergone without proper planning of Health Insurance.