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Importance of Health Insurance – Everything You Need to Know

18 October 2021

I wonder if you feel it too. Do you feel like the buzz for health insurance has become higher over the past two years? Well, yes. Ever since the pandemic has come around, it has definitely created awareness for health insurance. In a way, it is a good thing. Health is the most important thing any of us would need today, and in that aspect health insurance sure does play a big role.

There are Several Reasons Why you Need to Consider Getting a Health Insurance

  1. To combat lifestyle-related illnesses

Lifestyle illnesses are becoming more prevalent, particularly among those under the age of 45. Diabetes, obesity, respiratory issues, and heart disease, all of which are common in older individuals, are becoming common in younger people as well. Sedentary lifestyles, stress, pollution, poor eating habits, device addiction, and unstructured living are all risk factors for chronic illnesses.

  1. To protect your family

When looking for the best health insurance coverage, you can opt to cover your complete family under one policy rather than purchasing individual plans. Consider your elderly parents, who are prone to disease, as well as your dependant children. If you have enough health insurance, you will not have to worry about ensuring they receive the greatest medical treatment if something were to happen to them. Thoroughly research, consult with specialists for a piece of unbiased advice and ensure you select a plan that provides all-around coverage.

  1. Handling medical inflation

As medical technology advances and illnesses become more prevalent, the expense of treatment grows as well. It is also critical to recognize that medical costs are not confined to hospitals. The prices of doctor’s consultations, diagnostic tests, ambulance charges, operating room fees, medications, room rent, and so on are all rising. If you are not sufficiently prepared, any of these things might place a significant burden on your money. By paying a relatively low annual health insurance premium, you may avoid the burden of medical inflation while receiving great care without worrying about the expense.

  1. To compensate for insufficient insurance coverage

If you currently have health insurance (for example, through your work), find out exactly what it covers you for and how much coverage it provides. It is likely to offer basic coverage. If your existing insurance does not cover potential dangers, such as diseases or illnesses that run in your family, it may be insufficient in times of need. And, as medical treatments advance, having a greater sum assured might ensure that your every medical requirement is financially met. But don’t be concerned if you can’t afford a more comprehensive plan straight immediately. You might begin with a modest cover and progressively raise it.

  1. To safeguard your savings

While an unexpected sickness can cause emotional agony and worry, there is another aspect of coping with health issues that can deplete you – the costs. By purchasing appropriate health insurance coverage, you may better manage your medical expenses without depleting your resources. Indeed, some insurance companies give cashless treatment, so you won’t have to worry about reimbursements. Your funds can be used for their intended purposes, such as house purchase, education for your child, and retirement. Furthermore, health insurance entitles you to tax breaks, which boosts your savings even further.

  1. Obtain insurance as soon as possible to ensure your security.

Purchasing health insurance early in life offers several advantages. Because you are young and healthy, you may obtain insurance at cheaper rates, and the benefit will last as you age. You will also be given more broad coverage choices. Most insurance contains a pre-existing condition waiting period that prevents coverage for pre-existing diseases. This term will finish while you are still young and healthy, providing you with comprehensive coverage that will be beneficial if you become ill later in life.

How Does Health Insurance in India Work

– The insured’s journey begins when he obtains a Health Insurance policy. You may choose an insurance policy based on the coverage given, the inclusions, the exclusions, and the premium. That is the start of your connection with the insurance provider.

– The premium you will pay for your Health Insurance policy will be determined by the insurance company based on your age and income. It will also do a complete medical exam to evaluate your overall health. It will determine an annual premium and approve the sum assured based on these considerations. Any claims filed under the sum guaranteed limit will be settled depending on additional terms like deductibles and co-payments.

– In the event of hospitalization, you must determine if the coverage is a cashless insurance policy or not. If it is cashless insurance, you must contact the network hospital’s Third Party Administrator (TPA). Your hospital bill will be directly paid by the TPA. If the treatment is not cashless, you must pay the bills, and the insurance company will reimburse you.

– Some insurance policies offer hospital cash, which is a daily limit given to you based on the number of days you are in the hospital. This is intended to cover any daily expenditures incurred while in the hospital.

– The entire claim-related process is simple. It takes little time, and most insurance companies are cooperative in resolving disputes.

– If you do not file a claim in a given year, certain insurance companies may reward you with a no-claim bonus. This might be in the form of a premium reduction or an increase in the sum guaranteed.

What is Covered in Health Insurance in India?

Here are diseases covered with Health Insurances:

  • Accidental Expenses
  • COVID19
  • Cancer
  • Diabetes
  • High BP
  • High BMI
  • HIV or AIDS
  • Critical Illnesses
  • Heart Diseases
  • Specific Diseases

What is Not Usually Covered in a Health Insurance?

Here are some of the procedures that are usually not covered under health insurance:

  • Cosmetic Procedures
  • Fertility Treatments
  • Off the Label Prescriptions
  • New Technology or Procedures

Also Read: Liability Health Insurance Policy

Some Different Types of Health Insurance in India

  1. An Individual Health Insurance: Individual health insurance is a policy that you may purchase to cover you, your spouse, your children, and your parents. This sort of insurance coverage pays for your medical expenses such as hospitalization for injuries and illnesses, surgical charges, room rent, childcare treatments, and more.
  1. A Family Floater Health Insurance: If you want cheap health insurance coverage for everyone in your family, Family Floater Health Insurance is the way to go.
  1. A Group Health Insurance: A Group Health Insurance coverage is intended for a group of coworkers. As a result, whether you run a start-up or a corporation, you should purchase such plans for your employees. It is a type of benefit provided to employees. As an employer, you may purchase the coverage to increase employee retention.
  1. The Senior Citizens Health Insurance: Senior Citizen Health Insurance Plan is a health insurance policy that is specifically tailored for adults over the age of 60. If your parents or grandparents are above the age of 60, this policy is a suitable fit for you.
  1. Maternity Health Insurance: Maternity coverage is available as an add-on to the standard health insurance plan. All expenditures paid during the pregnancy, birth, and postnatal periods are reimbursed.
  1. Critical Care Insurance: The prevalence of lifestyle-related illnesses is increasing. With this in mind, insurance firms have introduced the Critical Illness Policy.
  1. Top Up Health Insurance: If you need more coverage, you can purchase top-up insurance. However, such plans have a “Deductible Clause.” As a result, in the event of a claim, payment will be given in excess of the policy’s specified maximum.

Conclusion

With rising medical expenses, health insurance has sure become a necessity. It is not just that, today you get to choose health insurance from various types to find one that would suit your needs the most.

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