Financial planning is not complete without investing in health insurance. In India, around 44% of the population does not have health insurance. Due to the continually growing costs of health care, and medicines in our country, every individual must opt for Health insurance. Check out the article to learn more about health insurance and why it is important.
What is Health Insurance?
Health insurance is a type of insurance that pays for a policyholder’s medical and surgical costs.
An insurance provider and a customer sign a contract for health insurance. In exchange for the monthly premium payment, the corporation agrees to cover all or a portion of the insured person’s medical expenses.
It either covers the care provider for the insured person directly or reimburses the costs incurred as a result of disease or injury.
What is a Comprehensive Health Insurance Plan?
You are not required to purchase a variety of separate health insurance policies to cover a range of medical bills because a comprehensive healthcare plan offers all-inclusive protection under a single policy.
Furthermore, comprehensive policies, unlike regular health care plans, frequently pay for expensive operations like kidney transplants and non-traditional kinds of therapy.
A comprehensive Health Insurance plan covers the following,
- Day-care Procedure
- In-Patient Hospitalization
- Pre or Post Hospitalization
- Domiciliary Hospitalization
- Pre-established Disease
- Critical condition treatment
- Annual Health checkups
- Ambulance Charges
- Extra add On Covers
- Maternity and newborn baby cover
- Hospital cash cover
- AYUSH Treatment includes ayurvedic, homoeopathy, and Unani.
Why You Should Buy Health Insurance?
It is now crucial for everyone, regardless of age or wealth, to carry health insurance due to the rise in lifestyle-related diseases.
To receive several benefits, it is always preferable to enrol in a health insurance program as soon as feasible.
Here is some major reason to buy health insurance:
Rising Healthcare Cost
With the Covid pandemic in the background, a health insurance plan is required due to the significant increase in medical costs.
Medical trend rates are also known as the rise in cost per person brought on by medical inflation. This rate is anticipated to increase by twice the rate of inflation in India.
In India, a 10% medical trend rate is anticipated, compared to a 5% rate of inflation.
Most insurers continue to state that the two most common claims are still cancer and circulatory system illnesses, which are then followed by gastrointestinal disorders and respiratory problems.
You can successfully tackle crucial diseases like cancer and heart issues with a defined benefit health insurance policy.
Treatment At a Hospital of Your Choosing
You can receive treatment anywhere within India and the rest of the world with the right health insurance.
You are not required to compromise on therapy if you have enough health coverage.
When you are diagnosed with a specified condition under a health insurance plan, you receive a lump sum payment, eliminating the need to be hospitalized at a hospital for cashless treatment.
You can choose to receive treatment wherever you like using the money from your health insurance claim.
High Coverage at Lower Cost
Plans for health insurance offer substantial coverage for a relatively low premium. This helps you save money and gives you peace of mind, even if you are identified with a serious illness.
To Protect Savings
It is expensive to receive care at a top hospital. When a loved one is given a serious diagnosis, people find it difficult to manage their finances.
In these circumstances, people borrow money, sell assets, or take out savings loans to pay for medical procedures.
The wise decision is to enrol in a health insurance plan, which will assist you in simultaneously securing your income and health.
To Tackle Various Costs Factored in Hospital Charges
Hospitalization involves more than just surgery.
The costs associated with medical exams, doctor visits, and medications may exceed the actual costs associated with being hospitalised.
Furthermore, there are expensive diagnostic testing and post-operative care options like having a nurse at home. Add it all up to see why medical care appears so pricey.
Health insurance policies cover a range of illnesses and procedures. They also include additional facets of medical care.
Also, read the Guidelines on Standard Personal Accident Insurance Product
Why is Health Insurance Important?
Having Health insurance is one of a kind assurance in any medical emergency.
- Health insurance helps financially to pay medical bills, aids in preventing high medical debt and limits the amount that can be spent annually on health care.
- Health insurance helps one live a longer and healthier, happier life.
- It also aids in the early diagnosis and treatment of diseases and disorders.
- Having Health insurance Reduces financial concerns about medical costs.
- Majorly health insurance gives peace of mind and removes the stigma attached to not having insurance.
Why is Having a Comprehensive Health Insurance Plan Important
- A comprehensive Health Insurance plan gives you a safeguard in the event of a health-related emergency. Its all-inclusive nature, however, distinguishes it from other simple health insurance policies.
- This means that a wide range of costs, including consultations, inpatient care, medical tests, hospital stays, outpatient care, and more, are covered.
- All important medical costs are covered in a comprehensive health insurance plan, including, among other things, coverage for chronic illness, outpatient care, diagnostic tests, and preventative care in addition to inpatient expenditures.
Major Factors to Consider While Purchasing Health Insurance
Here are important factors to consider while purchasing a health insurance plan,
The Ideal Combination of Premiums and Coverage
If a policy has a lower premium and offers you comprehensive coverage at a price you can afford, that policy may be a suitable choice. The other factor is a lower premium that comes at the expense of insurance coverage.
Therefore, the best course of action is to investigate the causes of a lower premium, as it ought to not come at the expense of health insurance.
Look for any additional co, deductibles, and sub-limit provisions; if there are, you may find yourself paying more when filing a claim.
Age Criteria
The age criteria are an important aspect while purchasing health insurance.
The age limit of the family members who are required to be insured should be taken into consideration when buying medical coverage.
Check the age limit criteria in the insurance plan for example there are health insurance plans with 91 days as the lowest entry age and 60 years as the maximum entry age.
And other plans include age restrictions ranging from 25 years old at the youngest to 50 years old at the oldest.
There are, however, some schemes that don’t impose any limitations on entering age. You can choose accordingly as a result.
Clause of Waiting Period
Any claim based on pre-existing conditions or particular illnesses will not be accepted by the insurer at this time.
Based on the company and the plan you have selected, it can be anywhere from 24 – 48 months. Additionally, you won’t be able to submit a claim for benefits until this time has passed.
As a result, you can evaluate plans and select one that has a short waiting period before you can use the benefits in the event of a medical emergency.
Cashless Hospitalization
Typically, health insurance companies partner with network hospitals so that insured individuals can receive cashless care in the event of a medical emergency.
You avoid having to complete the tiresome documentation that is necessary for admission and claim.
Additionally, the insurance pays the hospital directly with the insured amount.
Therefore, you are not required to first secure funding before requesting reimbursement.
It will be beneficial if you ask your insurance for a list of approved list hospitals and are aware of all the network hospitals in the area.
No Claim Benefits or Discounts
The No Claim benefit refers to the reduction that the insurance provider provides for each year that you have gone without making a claim.
Basically, for every year without a claim, your insurance amount is enhanced at the point of following policy renewals.
However, the majority of health insurance plans outline the NCB cap. Furthermore, the growth in the insured amount would be subject to the insurer-specified limit.
For instance, the insurer may offer 10% NCB up to a maximum of 50% if you purchase a health insurance plan for Rs. 5 lakhs.
Who is eligible to Buy Health Insurance?
A person above 18 to 65 years old is eligible to buy health insurance if he can afford it.
Depending on age, a different premium amount will be required.
Due to your excellent health and fewer medical visits, you would be able to afford lesser premiums if you get a healthcare plan when you are young.
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FAQs
| Can a sick person buy health insurance?
Even if you already have an illness, it is still feasible to purchase health insurance in India. |
| Can health insurance be denied?
For whatever ailment you had prior to the start of your coverage, no health insurance can deny you coverage or decline to cover essential health services. After you enrol, the plan is prohibited from denying you coverage or increasing your premiums solely on the basis of your health. |
| Does health insurance check your credit?
Insurance companies evaluate the risk they will accept by insuring you based on your credit score. According to studies, those with stronger credit scores are much less likely to file insurance claims, whereas people with low credit scores are more likely to do so. |
| Can health insurance be denied because of a pre-existing condition?
A “pre-existing condition” is a health issue that you had before the commencement of new health coverage, and per the Affordable Healthcare Act, insurance companies are not allowed to deny you coverage or charge you more simply because you have one. Women cannot be charged a higher price than men. |
