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Why should we take Health Insurance?

Why should we take Health Insurance

What is Health Insurance?

Health Insurance is a type of insurance, which covers medical expenses that arise due to illness. These expenses could be related to the cost of hospitalization, doctor’s consultation fee, cost of medicine, various test expenses. It is a contract between the insurer and the policyholder, where insurance company reimburses the financial medical expenses of the policyholder.

How many types of Health Insurance are provided?

There are many types of health plans, but broadly we can categorize them into two types:-

  1. Mediclaim plan
  2. Critical illness insurance plan

Mediclaim Plan:- it is the type of Indemnity plan, which covers your hospitalization expenses up to the sum assured. It can cover the whole family or a single person. 

Mediclaim Insurance plan compensates you or your family for the hospitalization expenses incurred due to illness or an accident. They cover the cost of treatment when you are admitted to the hospital. It includes in-patient expenses such as surgery expenses, doctor’s consultation fee, medicine, nursing fee, hospital fee, etc. The payment is made on the actual expenses incurred in the hospital by depositing the original bill.

Critical illness insurance plan:- Critical illness insurance plans cover specific life-threatening diseases. Some diseases may require long-term treatment or lifestyle change. 

Unlike the mediclaim plan, Payment is made on the critical illness cover chosen by the customer and not on the actual hospitalization expenses. As the treatment of some diseases is costly for the ordinary family, so this plan can compensate their expenditure.

Why does anyone need Health Insurance now?

We have witnessed two fatal and scary two waves of COVID 19, and also witnessed the expense of the medical bill of COVID 19 treatment. We don’t know when we can become patients with severe diseases or when we met an accident. We also don’t imagine the cost of recovery in these severe diseases or treatment. Most people cant have such saving to meet the expense of treatment. When we fall into this condition, our savings vanished, we fall into the trap of debt and it takes lots of time to come out of this situation. At the time of COVID 19, since, most of the people were facing a severe situation, it was a very difficult time for most of the families. 

These days, the cases of Cancer are arising too much, the medicine cost of cancer is around 18-20 lacs, we have seen also in COVID-19 cases,  the cost of medicine such as Tocilizumab & Remdesivir are very high. In addition to medicine. We have seen only the example of medicine, the cost of a ventilator and other life-saving therapy is much higher. The cost of treatment is increasing every year.  A normal family can’t arrange a big sum in a short time. One disease can drain out all savings and all dreams. 

Health Insurance appears like a savior in these difficult situation. It doesn’t let our dreams come to an end.

What should you check at the time of availing of health insurance?

All Insurance companies and their agents will tell you that their policy is best. But we need to check, which one is good for us. We need to know, which policy fulfills all requirements at the time of difficulties due to illness. Here a list of benefits, which must be in the health insurance policy:-

  • Protection against a large number of critical illness,
  • No increase in premium during the policy term if your health condition changes,
  • Flexibility to choose your health cover,
  • Long policy terms, which also cover old ages,
  • Large hospital network, where we can avail benefits of insurance. 
  • Market reputation of any Insurance company, the Insurance company must have a high claim settlement ratio, solvency ratio, high AUM value, etc. 
  • Routine medical checkups. 
  • Bonus on No claim. 
  • Cashless medical treatment,
  • Coverage of pre and post-hospitalization expenses.
  • The waiting period, as per norms of health insurance, every insured must serve a defined waiting period to get coverage for any pre-existing illness, it must not long period. 

 Tax benefit

The insured person can get benefits from section 80D of the Income Tax Act, 1961 for paying the health insurance premium. As early as started, more tax benefit can be availed.

Cost of premium

The premium varies from age and type of policy.  For a longer period and at a young age, the premiums are less in comparison with the short period and older ages.

 Arogya Sanjeevani Policy : A health insurance for all

It is a standard health insurance policy, which is provided by every health insurance company in India. This policy covers basic health insurance need for a common person. As mandated by IRDAI, Arogya Sanjeevani Policy, provides coverage from 1 lacs to 5 lacs, with a waiting period of 30 days.

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