We lives in a world of uncertainties where we do posses numerous risks to our assets including home, property, business, health, vehicle; among all health is the vital one which we can’t afford to endanger as the old axiom goes “Health is Wealth”. When you have a gut feeling that something is not going well then buy a health insurance to insure the future of your family. Health is your most prevalent chattels and Health Insurance is the precise alternative to manage that. So the question is why we need Health Insurance. To have the exact answer, we need to have a better understanding of what insurance is all about and other related factors first.
What is Insurance?
Insurance can be defined as a contract between an individual or policyholder and the policy provider. As per the contract, the insurance company is liable to cover certain percentage of a policyholder’s damage. To get that benefit, a policyholder has to comply with particular conditions predetermined in the insurance contract. One such stipulated condition is that the policy holder has to pay premium regularly, without fail, to get hold of insurance coverage. If the policyholder experiences a loss, because of some situations, such as a car accident or a house fire, the policyholder calls for reimbursement of its loss with the insurance company. Insurance is the advantageous and trustworthy means of safeguard from
One such stipulated condition is that the policy holder has to pay premium regularly, without fail, to get hold of insurance coverage. If the policyholder experiences a loss, because of some situations, such as a car accident or a house fire, the policyholder calls for reimbursement of its loss with the insurance company. Insurance is the advantageous and trustworthy means of safeguard from
Insurance is the advantageous and trustworthy means of safeguard from monetary loss on the whole. Let us have a better understanding of this with the help of an example.
Suppose you have a house insurance policy and you pay a fixed amount such as 2000 INR as premium per month/year, as per your convenience and policy demand, for a policy which has a face value of 2,00,000 lac. One fateful day, your house caught to fire which lead a major damage to the property.
The loss was huge and you file a claim for 2, 00,000 lac INR with your insurance company. The company covers the loss after deduction of your premium value i.e. 2,000 INR. In that manner, you somehow were able to recover your loss which was not easy to retrieve by other means.
This is how world of insurance works in order to benefit the policy holder and lend a hand while they suffers from unsolicited and out of the blue financial loss.
It is considered as the most effective risk management system. You invest your blood and soul to establish resources for the comfort of yourself as well as for your family, and you can’t run the risk to jeopardize them.
Why we need Health Insurance?
Before jumping to this question we need to know more about Health Insurance in order to have a better understanding of every aspect that Health Insurance consist.
What is the Health Insurance?
Health insurance is a category of insurance coverage that takes the charge of the expenditure of an insured individual’s medical, surgical, and other health related issues. It also covers the loss by an accident. The mode of payment for the loss is done by two methods: either the insured pays the expenditure and is then reimbursed, or the insurance company pays the expenditure straightforwardly to the service provider.
By means of calculate approximation the all inclusive risk of health concern and health system operating expenditure above the risk pool, an insurer can work out a customary and scheduled finance structure, such as a monthly premium or payroll tax, to make available the capital to compensate for the health care benefits which are describes in the insurance contract or agreement. A central organization such as a government bureau, private corporation, or not-for-profit entity is there to overseen and govern the benefits that a policy promise to endow its policy holder.
A central organization such as a government bureau, private corporation, or not-for-profit entity is there to overseen and govern the benefits that a policy promise to endow its policy holder.
As per the health insurance vocabulary, a clinic, hospital, laboratory, pharmacy, doctor and health care practitioner falls in the category of “provider” and the person who has the health insurance coverage is known as “insured”. Many companies have included “Health Insurance” in the list of employee benefit.
Objective of Health Insurance-The chief objective of health insurance policy is to lend a helping hand to you, as well to your family, while you are facing an unpredicted severe illness or injury. It helps you to pay for care. In today’s era, when every new variety of disease and illness are increasing like mushroom, a well- planned health insurance policy has become one of the most required necessities for everyone. This policy doesn’t only helps while you are ill or have an injury, but, with this policy, you are more liable to get routine and precautionary care. It ensures that while an individual faced
This policy doesn’t only helps while you are ill or have an injury, but, with this policy, you are more liable to get routine and precautionary care. It ensures that while an individual faced unexpected health related issue that his/her main concern should be get well soon, not the forthcoming medical bills that needs to pay.
Importance of Health Insurance- Each person more or less during their lifetime will require some kind of medical attention and treatment. As we are living in an era where our health posses several health risk ever than before When medical care is required, ideally the patient should be able to concentrate on getting better, rather than wondering whether he/she has got the resources to pay for all the bills. This view is becoming more commonly held in nearly all the developed nations.
This view is becoming more commonly held in nearly all the developed nations.
Functioning of Health Insurance – The Health Insurance or Mediclaim works in two below mentioned ways:
⦁ Cashless- Cashless Insurance is commonly opted option by policyholder as it is swift and easy. Each and every insurance company which proffers health insurance comes with a convincing and well-structured network of healthcare provider such as hospitals, doctors, laboratories under its panel. They have a direct payment agreement between them. So, when a policyholder gets any treatment or hospitalized, as listed in the policy, the insurance company will directly make payments to the health care provider for all your expenses. All you need to do is, just submit your cashless card which you must have provided by the insurance company and you are entitled to avail the cashless benefits.
They have a direct payment agreement between them. So, when a policyholder gets any treatment or hospitalized, as listed in the policy, the insurance company will directly make payments to the health care provider for all your expenses. All you need to do is, just submit your cashless card which you must have provided by the insurance company and you are entitled to avail the cashless benefits.
⦁ Reimbursement – Suppose, owing to some emergency or other reason, you are not admitted in the hospital as per the list of policy, then initially you or your family will makes the payments and bear the expenses. Later, you can submit your Claim form along with the bills and other relevant documents to support
Later, you can submit your Claim form along with the bills and other relevant documents to support claim for reimbursement. The insurance company will precede further once the verification of the documents and bills are done.
How and when you should buy a Health Insurance?
The recommended way to progress is to decide the plan as per personal health needs. The appropriate insurance cover is the only way that can entitle the insured to maximum benefits. Again, any product is of use only when bought at the right time. By planning to purchase it at a young age, you can access innumerable health plans. It gives rich variety so as to allow you to make your own choice. With plans available in abundance you will able to choose the plan that can offer you the best deal. It refines the search as it assists the buyer to decide with all the liberty. Without holding back on any of the health needs, the insured can shortlist the product that best fits in with his/ her pocket size.
By planning to purchase it at a young age, you can access innumerable health plans. It gives rich variety so as to allow you to make your own choice. With plans available in abundance you will able to choose the plan that can offer you the best deal. It refines the search as it assists the buyer to decide with all the liberty. Without holding back on any of the health needs, the insured can shortlist the product that best fits in with his/ her pocket size.
Without holding back on any of the health needs, the insured can shortlist the product that best fits in with his/ her pocket size.
Furthermore, the best time to buy a Health Insurance after the age of 25 and before 30 as an early enrollment lead you numerous benefits including the low premium value which is highly affordable makes you eligible for full claim, preventive care at an early age, you earns loyalty bonus, bigger tax benefits, allows you to choose from wide-ranged plans and lower rejection rates as you fulfill all minimum eligibilities clause. So, be an early buyer and take
preventive care at an early age, you earns loyalty bonus, bigger tax benefits, allows you to choose from wide-ranged plans and lower rejection rates as you fulfill all minimum eligibilities clause. So, be an early buyer and take
So, be an early buyer and take privilege of ample benefits.
Need of Health Insurance
Now, the final question is why we need the Health Insurance. Health Insurance offers a whole plethora of benefits and reasons to answer this. Though there are endless reasons that a Health Insurance gives you to avail it, yet some are some which are too essential to ignore. Let’s have a look of this extensive list to have better understanding.
1) Elongated and widespread essential health benefits that it provides you
A Health Insurance consists of elongated and widespread essential health benefits which makes it so desirable. These below mentioned health profits are all-inclusive into your health insurance policy:
⦁ Outpatient care—a health Insurgence makes your OPD experience swift and easy.
⦁ Makes admission process effortless.
⦁ Care before and after the birth of your child
⦁ Provides a vital support for Mental health and substance use disorder services including behavioral health treatment, counseling, and psychotherapy
⦁ Looks after for your prescription drugs.
⦁ Services and devices for speedy recovery while you are suffering for an injury, or have a disability or any other medical circumstances. This comprises physical and physiotherapy therapy, speech-language pathology, psychiatric rehabilitation and habilitation, and so one.
⦁ Your laboratory expenditure.
⦁ Looks after the Pediatric services as well which includes dental care and vision care for your kid.
Protects you from the unexpected and unwelcomed expenses raised by medical emergencies- Medical emergencies are unwelcomed and uncalled for, but we can ignore them as well. An expected medical emergency have all the power to either make you drain in debt or leave you bankrupt. A health insurance policy comes as a savoir in this situation. it ensures that the medical emergency should now shatter your world. In an era, when prices of every
it ensures that the medical emergency should now shatter your world. In an era, when prices of every commodities are rising by each passing day, medical assistance also costs you bomb. A simple consultation of a doctor leaves a hole in your pockets; keep the expenses of tests, medicines and scans aside. People who don’t have any health care management system or health Insurance has to take the onus of all these over them.
People who don’t have any health care management system or health Insurance has to take the onus of all these over them.
3) You pay less-
If you are a proud owner of a health Insurance then you could easily flaunt the percentage discount that you have received in your medical services. Insurance companies negotiate discounts with the health care provider available in the market in order to provide you the economical yet effective health care services; thus you are in a win-win situation. People who doesn’t have any health insurance end-up paying more or roughly twice for the same care.
4) Preventive care-
Health insurance follows the old saying “Prevention is better than Cure” and works accordingly.
There are number of preventive cares that a health insurance providers such as regular health care check-ups, scans and test. This way you get your vitals check customary. Early detection of any alignment or diseases lead to start an early treatment consequently saves you from any last minute medical emergency.
5) It opens the door of the world of quality healthcare-
With a health care policy you gained access to the universe of enhanced and prompts health care services for you as well as for your family. No matter how strong the national health policy a government provides, at times, tends to break down while serving billions of population.
In this scenario, one has to depend on private health care providers, where the quality of health care services is par excellence as well as the costs and expenses involved. This factor, sometimes, holds you backs to avail those world classed health services.
Health insurance permits you to obtain the paramount and appropriate treatment without worrying about the cost involved. It takes the burden of those roaring expenses over it. It doesn’t permit your financial condition to act as a hindrance in your treatment.
6) A cherry on the cake is you get tax rebate-
The benefits of health insurance are not over yet. Apart from serving as a vital risk management system for all your medical needs, a health insurance also helps you to get a rebate on your taxes.
7) One policy, serves all-
Health Insurance is all comprised risk management solution for your whole family. It is not limited to you only it covers your spouse and your children.
8) Far-reaching benefits-
Numerous people have a notion that a health insurance policy lends a helping hand only while you suffers or face any medical emergencies. But, it a wrong conception which needs to be correct: Health Insurance is not about only medical assistance. Many benefits of health insurance policies remain undercover and unused, owing to shortage of proper knowledge amid policyholders.
⦁ Period of Recovery Benefit: – This unique feature of Health Insurance, the insurance company take cares of the insured’s recovery expenditures. The benefit allows the policy holder to convalesce auxiliary costs that might take place because of to hospitalization, such as loss of income. The insurer pays a certain amount while the person is hospitalized for long period. In some policies, associated costs such as compassionate visits by family members are also covered.
⦁ Alternative Treatment and therapies: – In recent years, the recognition and attractiveness towards alternative treatment has increased exponentially. Keeping this in mind, now the insurance companies had added this feature in their policy. Conversely, the companies have some clauses attached to it.
⦁ Expenses related to organ transplantation: – In today’s era transplantation of organs have become common, thanks to our lifestyle and the pollution. The transplantation of any organ involves a high cost ranging anything between Rs 3 lakhs and Rs 5 lakhs. With the help of a health insurance, you will not have to worry about your medical expenses before undergoing an organ transplant surgery.
Now, majority of general insurance providers cover organ transplant surgery as a vital component of their usual health insurance policies. A number of insurers compensate the whole cost involved in the transplantation, whereas others put a ceiling on these expenditures.
⦁ Assistance/ Attendant allowance: – While you are fitting your battle against some disease or an accident, you need someone next to you, holding your hands and comforting you. Health Insurance companies do understand that how much that assistance means to you; thus they offers something for them as well. They offer attendant allowance to adults accompanying the insured at a hospital, provided the insured is a child
⦁ Care-at-home treatment: – In certain case, a person has to kept under medical supervision while at home also. For example, a person who has paralysis or in a coma, needs to have an extensive and comprehensive medical supervision which could be functional from home as well.
Keeping this thing in mind, many insurance companies has upgraded their plans and provides compensation for the expenses involves in such kind of treatments, though the companies have capped the sun and the number of days for which the benefit is obtainable.
⦁ Everyday Hospital Cash allowance: – When a person is hospitalized, some expenses are visible and evident such as surgery cost, bills, medicine, fees and so on. But there are numerous other hidden expenses as well counting as food and travelling expenditures which many tends to ignore.
But your health insurance company is all- set to provide a vital support in such hidden expenses as well by providing additional financial fortification to take care of all those hidden expenses.
⦁ Health Checkups at no cost:-An added advantage of health insurance policy is that it offer free periodic health checkups to its policyholders after every 4 or 5 claim-free years, provided the tests are done at empanelled hospitals or laboratories.
⦁ Dental Treatment: – While we keep a check on other body vitals, we tend to corner the dental care and the treatment. Health Insurance covers all the expenses for the dental treatment one in a few years with a certain limit allowances.
⦁ Bariatric (Weight loss) Surgeries:- Obesity has emerged as one of the most dreaded danger to our lives these days, as it leads to a number of life-threatening diseases counting as heart ailments, diabetes, high blood pressure, infertile in females and so on. We need a comprehensive health plan to fight the battle against obesity.
At times, in some cases, Bariatric surgery is the last available option to come over this health issues; bariatric surgeries are no longer gets counting in the cosmetic treatment surgeries.
It has become life-saving practice. Health insurance companies are aware with this newly born threat, so they provide a crucial support by paying all-inclusive expenditure that a bariatric surgery demands.
9) Lesser known yet essential profits that you earn with a Health Insurance the Health Insurance offers more than your expectation. There is many lesser known, yet fruitful number of profits that a Health Insurance has in its kitty for you. Just have a look of this for better understanding.
⦁ Lifetime Renewal- Every health insurance plan sets an upper cap on the entry age. It is usually 70-80 years. The renewal age is extended a bit but it does not get beyond 90 years. Now doesn’t it seem an irony that the older you get, the harder it becomes to get covered under a health insurance plan. A lifelong renewal feature enables you to renew your policy lifelong, so that you are covered under a health plan even when you a 90 year old man.
⦁ Medical Concierge Services- This feature of your Health Insurance allows you to avail a series of services including personal assistance to the insured in the course of his/her illness. Additionally, it consists of receiving the reliable links and details of medical professionals, arranging appointments, making arrangements, bills and prescriptions and many other related affairs. This way it saves your time and efforts.
⦁ Restoration of the amount insured- Every issuance policy has a fixed amount of sum assured that is eligible to avail anytime during policy tenure. But what if the sum assured is exhausted before the end of the policy term? No need to worry, your issuance company waves the white flag and leaves the insured at his/her own in such case.
The reinstatement aspect stock up the sum assured if it is exhausted. Thus, the insured keep on getting the financial support during hospitalization. Now, that a good deal. Isn’t it?
⦁ No Loading Expenses- As a policy holder you must be well conscious of the fact that if you do not make a claim, you get bestowed by the insurer and if you do, you get penalized in the form of loading charges on the premium at the time of renewal. To save you from this situation, Health Insurance gives you freedom from bearing the claim-based loading.
⦁ Top-ups- life is all about growing and expending. Everyone has quite a number of turning points in life such as getting married, being promoted to a higher designation, or if you are lucky enough, inheriting a fortune from a rich relative of yours.
Well, whatever the case may be, at such points you might feel a need to get wider health coverage because now you can afford it. But to get a new insurance plan is quite a demanding task itself, but to make the process effort less the Health Insurance company came up with the idea of Top-ups.
A top up on your current health insurance plan lets you to boost your health insurance coverage. Going for a top up insurance plan rather than buying a new policy saves you money. And the best of all, unlike buying a new plan, you do not have to undergo a medical screening while buying a top-up.
⦁ Alternative Treatment- With the varieties of health issues we face today, there has been a rise in the available solution as well. Health Insurance doesn’t not only cover the health care services provided by the allopathic and modern treatments and technique.
It covers other available alternative such as Ayurvedic, Homeopathic and Naturopathic treatment as well.
⦁ Other Value Added Services –Presently, there are numerous insurance companies are offering Health Insurance, and with so many health insurance players in the field, the market has become more competitive as ever before. Well, this situation is good for the customer! To gain the customers trust and an edge over the others, each health care insurance company comes up with new and exciting value-added service which at the end is beneficial for the policy holder.
The value- added services that the companies are providing these days includes assigning a relationship manager for assisting the insured with the claim process, free medical advice on telephone, lets the health insurance cardholders to enjoy discounts on medical stores, health clubs and fitness centers.
To sum up, we could easily say that Health Insurance is the exact synonym of an old saying “A Friend in need is a friend indeed” .It is a sensible decision as it is of great help if a person meets with unforeseen and unpleasant incidents.
The moment a person goes for the Health Insurance, the individual gets covered; thus enables that individual to sit back and relaxed. Additionally it bestow the peace of mind to the policy holder and secures completely
This results in landing up with the best choice.
So, now you know more about benefits anof health insurance policies do much more besides covering hospitalization expenses. Make sure to fully read the policy document to enjoy the maximum benefit out of it.