Why do Individuals Need Health Insurance Cover?

by Jessica Kappor Project Manager

Health insurance provides a sense of security to people. It provides protection from risks and unforeseen circumstances associated with medical emergencies. It suits people in India vey well, as they are generally known to avoid risk.

Categories of health insurance

Indian Health Insurance is primarily classified into 2 categories:

1.       Cashless Hospitalization

2.       Medical Reimbursement

 Cashless Hospitalization

Cashless hospitalization is a facility given by an insurance company (insurer) to the insured (policy holder), wherein the latter is not required to pay the hospitalization expenses at the time of discharge from the respective hospital. The payment is made directly by the insurer. However, the prior approval of the TPA (Third Party Administrator) is necessary to get the benefits under this option.

 

Cashless hospitalization can also be of two types:

 Planned hospitalization: It is a situation wherein the insured has prior knowledge of his hospitalization. The duration period may vary from case to case.

 Emergency hospitalization: Over here, the hospitalization happens all of a sudden as a result of an emergency or unforeseen circumstance. The hospitalization is not anticipated in advance. Some of the examples are accident, heart attack etc.

 Medical Reimbursement

Medical re-imbursement involves repaying the services availed during hospitalization and, most importantly, upon the completion of the treatment.  Over here, the insured pays for the expenses incurred during hospitalization. After getting discharged from hospital, the policy holder can opt for medical reimbursement. To utilize this option, the insured has to approach the relevant TPA under which he/she is covered, fill the requisite form and fulfill all the necessary requirements.

Reasons for not opting insurance

There are several reasons, which keep people away from health insurance. This is mainly due to lack of awareness about the insurance services in the markets. Then the several misgivings about the prevailing insurance policies in the markets also do not encourage people to go for insurance.

Why Health Insurance is a must?

Never underestimate the significance of Health Insurance. Here are some reasons for the same:

 

• It offers financial protection arising out of medical emergencies

• Perfect solutions to uncertainties and risks which are prevalent in human life

• Prevention and reduction of unforeseen losses

• Quality healthcare at disposal

• Good way to save money and a foolproof investment option

• Offers financial stability

• A good option to get tax sops in the form of deductions

• Minimizes anxiety and stress due to hospitalization

• Peace of mind is assured

Vitals things to keep in mind before opting for insurance

The policy coverage: The policyholder should have clarity on the extent of medical coverage being offered under the particular health insurance policy before opting for it.

Check for medical expenses that are not covered: Prior to taking a health insurance policy, the insured should look for the medical expenses which are not covered under the policy. The deductibles are significant in any coverage and the expenses incurred during a medical treatment have to be borne by the individual.

Keeping track of the policy’s premium due date: A health insurance policy requires the primary insured to pay premium on a monthly, half-yearly or annual basis. Non-payment of premium within the stipulated time leads to policy lapse with subsequent break in the policy coverage of the concerned individual. A break in policy coverage will be considered as a fresh policy cover.

All said and done, there’s no denying the significance of having health insurance in place to keep you financially covered if a medical emergency were to arise. 

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Aug 1st 2018 02:00. Viewed 444 times.

Comments