Overview of Health Insurance

Life at times can be very unpredictable. Illness or injury might strike at any time in this fast paced world with all the lifestyle advancements. Only during such times,we do realize that health insurance is important.

So what is a health insurance then?

Health insurance is basically an insurance product which covers medical and surgical expenses of an insured individual. It reimburses the expenses incurred due to illness or injury or pays the care provider of the insured individual directly.

What is the need for health insurance?

Medical costs are rising year by year. As a matter of fact, inflation in medical care is higher than inflation in food and other articles. While inflation in food and clothing is in single digits, medical care costs usually escalate in double digits. For an individual who hasn't saved that much money, arranging for funds at the eleventh hour can be a task. This is particularly daunting for seniors, given that most ailments strike at an advanced age.

One way to provide for health-related / medical emergencies is by taking health insurance. Health insurance offers considerable flexibility in terms of disease / ailment coverage.

With health insurance, you are assured of a more secure future both health-wise and money-wise. This makes health insurance policies critical for individuals, especially if they are responsible for the financial well-being of the family.

Health Insurance is also provided by the Employer at times, which means that part/full payment of the premium is done by the corporate.

A group or corporate health insurance policy is purchased by an employer for eligible employees of a company. One of the key employee benefit packages provided by employers, a group health insurance plan, in some cases, may also provide cover to family members of employees.

There are two main differences between group health insurance and individual health insurance.

• The first is that group plan premiums are subsidized by an employer, meaning that the expense is shared between the employer and employee.
• Secondly, the employer can negotiate a lower price for insurance and pass those savings onto their employees and their dependents.

A health insurance policy could be one of the two types:

• Floater policy - In a floater policy, a single annual premium is to be paid for the coverage of an entire family. The sum insured can be used by any insured member of the policy.
• Individual policy - In an individual policy, premium is paid for each insured member.

These days it is always recommended to buy a health insurance policy at an early age because health insurance covers more than just the hospitalization costs.

Below are some of the common coverage's available in most health insurance policies:

• Pre-hospitalization
• Post-hospitalization
• Maternity cover
• Hospitalization cash benefits
• Room rent
• Ambulance charges
• Health checkups, etc.

What is not covered or excluded from a basic health insurance:

• Pre-existing diseases
• Specific medical conditions
• Cosmetic surgeries
• Abortion
• Supplements
• Extra charges viz. Admission fees, registration fees, etc.
• Diagnostic charges
• Costs for alternate therapy viz. massage, aromatherapy, reflexology, etc.

So what are you waiting for? Go purchase your health insurance policy today!!!