What Is Health Insurance
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Dec 23 2020
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Do you often wonder what is health insurance and medical insurance? We have dependable answers for all your basic health insurance dilemmas. Health insurance essentially refers to insurance policies that cover an individual’s medical and surgical expenses. Depending on the nature of the plan, the insurance company will either pay the insured amount directly to the medical facility, or the insured will pay out-of-pocket at the time to get a reimbursement at a later date.
With the ever-escalating medical costs, it is becoming all the more important for families to make smart financial decisions that protect them from health-related contingencies. The right health insurance plans can help protect your life’s savings in case there is a major medical emergency in your family. Many of these plans will cover as many as 30 critical illnesses along with about 80 surgical procedures.
DIFFERENT TYPES OF HEALTH INSURANCE POLICIES
In India, you will be able to broadly choose from the following three types of medical insurance policies:
HOSPITALIZATION PLANS
These plans cover the hospitalization and medical costs of an individual subject to the sum insured. These are also known as indemnity-based plans where the sum assured can be fixed. The sum assured is fixed for a member of the family in case the policy is for an individual, and fixed for an entire family in case it is a family floater plan.
HOSPITAL DAILY CASH BENEFIT PLANS
This is a defined benefit policy, and as the name suggests, it covers a defined amount of money for everyday hospitalization regardless of what the actual cost of hospitalization and treatment is. The Daily Cash Benefit covers your out-of-pocket non-medical expenses during hospitalization.
CRITICAL ILLNESS PLANS
In this benefit-based medical insurance policy, the company pays a lump-sum amount when an individual is diagnosed with a predefined critical illness or needs to undergo a procedure for the treatment of this illness. Each HEALTH INSURANCE COMPANY will provide to the insured a list of specific critical illnesses the plan covers at the outset. By nature, these illnesses tend to be of low frequency and high severity. Furthermore, the cost of treatment is also higher in these illnesses when compared to other medical issues.
WHAT DOES HEALTH INSURANCE COVER
A quintessential MEDICAL INSURANCE PLAN in India will cover a host of things depending on the policy you choose for yourself and your family. For instance, you may be able to find a cover for domiciliary treatment for a bedridden family member. The cover not only takes care of your hospitalization bill but also your rehabilitation in the form of physiotherapy and other treatments recommended post discharge.