Medical costs are touching sky high rates every day, and everyone seems to be talking about having the best health insurance that there could be so that they don’t feel the pocket pinch. Most of the medical care facilities also nowadays ask you about a health insurance before they admit you or your loved ones. So, what is a health insurance?
Health insurance is an insurance scheme that provides coverage for an insured individual’s medical and surgical expenses. By having this an individual can get all his expenditure reimbursed after their medical needs are completed or it pays the organization directly.
Understanding the workings of health insurance
Health insurance provides you financial help when you need hospitalization or when you claim for the money that you had to spend for recovering. It mostly works in two ways:
- You can claim back the total amount of your spending by producing all the relevant bills and certificates to the company from where you have taken your health insurance and you would be paid back the whole amount once all your bills are cleared. Although a person with limited finance may feel burdened with this process as they have to pay the whole expenditure on their own and they will be able to claim it only later.
- All your expenses are taken care of immediately with the help of Third Party Administrators (TPA). Here the worries of the insured diminish by a lot as they don’t have to pay anything from their own pockets and it’s been taken cared by the company directly.
Which type of health insurance plan should you choose?
People always wish for themselves and their loved ones to be safe and healthy. Just hoping and praying for everyone does not always help in ensuring their fitness. Thereby comes the health insurance which takes care of all the expenses if you fall ill some day or are in need of help with covering the cost after the hospitalization gets over. There are three kinds of health insurance plans if we see broadly:
- Hospitalization Plans: This plan reimburses all the medical costs that are levied on the insurer to the sum insured. They are also called indemnity plans. Here the policy could be made for an individual as well as it can be taken for the whole family.
- Daily Cash Benefit Plan: This policy, as the name suggests, pays a defined sum of money as the hospitalization cost every day regardless of the actual hospital costs.
- Critical Illness Plan: This plan helps you during the time of your critical illness. they pay a lump sum amount to you on the diagnosis and for treatments and medical procedures. Crucial illnesses that are severe and uncommon in nature but has costlier treatments are covered by such policies.
Why opt for a health insurance?
Matters of health are always uncertain. You can never predict your or your loved ones’ well-being. Thus, it is necessary to go for a health insurance while you are still healthy and up and about. A sudden illness or an unexpected medical emergency can get very expensive. You might not always be prepared with your finances to fight with such a grave situation which can lead you to several financial debts and also make you mentally stressed. To keep away from such unlikely situations what is it in paying a few bucks to a policy which might help you during the biggest need of your life and also help you monetarily to cover the expenses of your treatments.