Why Health Insurance
Health insurance takes care of any health problem, serious illness or an operation/surgery if, required i.e. for either of the two for which one has to get admitted in a hospital for the necessary services. The insurance coverage covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and then gets reimbursed, or the insurer makes payments directly to the service provider(i.e. hospital). This type of health insurance is called Cashless Insurance, where the insurer gets a card (similar to the debit or credit card) which upon showing to the hospital staff , the insurer, can avail the services without making any payment to the hospital.Most of the Insurance agencies , today are providing this service , which are very handy for the insurer. Another important reason for Health Insurance is increasing cost, which we all are experiencing. Inflation , which is always on the rise and affects the Medicare. Medical costs are rising at higher speed than any other article/item. Therefore it is necessary to have Health Insurance paticuarly for those who donot get any medical assistance or re-imbursement of medical bills from their organisation. With Health Insurance, one is assured of a safe future both health-wise and money-wise. This, therefore becomes necessary for everybody to consider and go for right Health insurance policy.
Types of Heath Insurance Policies:
Variety of Health Insurance options are available and the insurer can pick and choose the most suitable policy for himself/herself or for the family.
This plan pays cost of hospitilisation and other hospital expenses for the insurer to the extent of sum assured. If for some reason the cost goes beyond the sum assured, the insurance company pays only the sum assured amount. No extra payment is made. If the insurer has opted for a floater policy i.e. one insurance policy for the family (more than one member) and the individual sum assured falls short, then the balance cost can be utilised from the other member of the family.
Some Insurance Companies offer additional services as mentioned below:
There is another type of hospitalization policy called a top-up policy. This policy helps those who are covered by their employer etc. but for a limited amount. If the insurer wants to add on to this existing cover , he/she can opt for Top-up policy. It may also be noted that, this is subject to deduction on every claim premium from the final amount payable.The premium to be paid in this case may be slightly higher.
This is another type of insurance policy , where the insurer pays fixed sum for every day hospitalisation.The payments for a defined number of days in the policy year and may be subject to a deductible of few days.
In this policy , the insurer gets a fixed(lumpsum) amount on diagnosis of that particular critical desease/illness . These deseases/illnesses are very specific and highly severe and low frequency in nature that may cost very high e.g. Heart ailment ,Cancer etc.
Some important points to be kept in mind:
1. Health insurance is applicable only for inpatient hospitalization for treatment/surgery etc.
2. Outpatient services are not payable under any health policiy.
3. Direct Payment or Cashless Facility: Under this facility, the person does not need to pay the hospital as the insurer pays directly to the hospital. Under the cashless scheme, the policyholder and all those who are mentioned in the policy can undertake treatment from those hospitals approved by the insurer.
4. Reimbursement at the end of the hospital stay: After staying for the duration of the treatment, the patient can take a reimbursement from the insurer for the treatment that is covered under the policy undertaken.
N.B.: Please carefully study/understand all the options/offerings/benefits made by the Insurance Company, before deciding to go for it.