A Health Insurance is a contract between an insurer (health insurance company) and an individual in which the insurer agrees to cover the cost of any medical expenses that may arise in the future in return for the premiums paid by the benefactor.
Choosing a plan- An individual can choose a health insurance plan according to his/her needs based on facilities provided, expenses covered, etc. from an insurance company of one’s choice. In case of pre-existing ailments, different companies have different policies for cover. Thus, it is very important to choose the right plan for oneself keeping in mind all the relevant factors.
Calculation of premium- After selecting an insurance plan, the premium is calculated for the buyer. It is calculated on the basis of age, income, health problems/ diseases if any. A comprehensive full body check-up is administered by the insurance company
Only after this, a premium payable every year is set by the company and the maximum amount that the insurance covers known as “sum assured" is authorised.
How does the claim work - In case any medical expenses come up due to hospitalisation, the claim can be sought in two ways. The first alternative is cashless. In this method, if the insured goes to a hospital in the insurance company’s network list, all the expenses will be dealt with directly by the company.
The second option is the reimbursement process. In this process, the bills are initially paid by the insured himself and the expenses are later reimbursed by the company to him after submitting the bills and receipts to the company.
What happens in case no claim is ever made by the insured- In case the need for medical coverage does not ever arise, then the individual, during that year, pays a premium for nothing in return. Some companies, however, provide a “no-claim bonus" under which the company refunds a certain percent of the premium for every year no claim is sought. At the same time, some companies tend to increase the sum assured of an individual as a reward for not making any claim.
Health Insurance is quite a beneficial financial product for everyone. Health insurance plans have numerous additional benefits such as tax deduction, free health checkups among many others. One should very carefully choose an insurance cover considering his/her personal needs.
Humanity has been facing a health crisis, so far unmatched by anything in history. We may have read about the plagues and the cases of flu of the earlier centuries, but the COVID-19 is a virus that has left everyone on the planet fearing for their health.
With the rising instances of diseases and accidents, the demand for health insurance has shown significant growth. A health insurance plan can provide you with financial security in times of a medical emergency. Every individual has certain risks and uncertainties in life. The best way to tackle health risks is to purchase a health insurance.
Health is Wealth' and therefore, it's essential to care for you and your family's health. With rising costs of hospitalisation and medical treatment, having a health insurance/medical policy is essential. It not only ensures you don't go bankrupt after an illness, but also provides sufficient coverage. Most importantly, even if you don't have to avail it, you get health insurance tax benefits.
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