What Is Health Insurance and How Does It Work?

Health insurance is basically a legal agreement between a policy buyer and a health insurance company where the insurance company (insurer) stays liable in terms of providing financial support should there be any unforeseen health issues which the insured suffers throughout the term of the policy. The policyholder has to pay a certain amount known as "premium" to avail of the benefits of a health insurance plan.

This premium can be paid annually or monthly. There are a number of health insurance plans available today in the the market for different sum insured and the premium for the same depends on a number of factors such as the age and health habits of the individual, sum insured taken, etc., among others.

Just like a life insurance policy secures the life of an individual and offer a certain amount of financial compensation after the policy maturity or in the event of the insured's premature death, health insurance plans secure an individual against the rising costs of treatment and hospitalization.

All you will have to do is pay premium under a health insurance policy to enjoy the benefits of health insurance such as cashless hospitalization, pre and post-hospitalization cover, daycare treatment, treatment costs, etc., and much more.

In the event of a health issue where hospitalization is required for more than 24hours, you can show your respective health card to the desk and all your medical bill will be taken care of by your insurance provider. A number of health insurance plans also cover the costs for treatment at home, otherwise known as domiciliary hospitalization, given that the treatment was conducted under the medical supervision of a doctor.

As the number of lifestyle diseases continues to grow, it becomes imperative to have a full-proof plan in the event of a medical emergency. An illness or accident doesn't come with prior warning and the treatment cost for the same could eat up the savings of your entire life. This is why health insurance is an absolute necessity today.

Health insurance plans are available on both individual and family floater basis. Under a family health insurance plan, all the members of a family can be covered under a single policy. There is also another type of health insurance known as group mediclaim which is generally offered by business owners and employers to their employees.

Keep in mind that if you are living well and healthy today doesn't guarantee that tomorrow it will not be any different. Nothing is promised in life and therefore you must make sure that you and your family or loved ones are protected under the best health insurance policy in India.

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Created on Jul 3rd 2020 01:19. Viewed 302 times.

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