Health Insurance

What is Health Insurance?

According to PTIC INDIA – Financial Planner in Delhi, Health Insurance referred to as medical insurance or simply mediclaim is a way to pay for healthcare. This is insurance coverage that covers the illness or injury, medical and surgical expenses of an insured individual. It protects you from paying the full cost of medical bills.

PTIC INDIA provides a variety of Health Insurance Plans & Mediclaim Policies that offer financial security to meet health-related contingencies. Due to changing lifestyles, health issues have not just escalated, they have increasingly become more complex in nature. It becomes imperative therefore to have a health insurance plan in place, thus your financial planning is incomplete if you have not accounted for health.

health insurance

Need of Health Insurance

It is important to have a health insurance plan in a country like India, where the Human Life Index ranks very low. Very few are aware and realize the importance of Health Insurance. Life may surprise you any moment with accidents and illnesses. And if you do get hospitalized, then over-the-top healthcare expenses may be difficult to pay from your own pocket. So every individual must buy a medical insurance plan that includes medication and hospitalization costs. At the last moment, arranging large sums of money to treat medical emergencies is difficult if not impossible for most individuals. Therefore being prepared is the only way out.

Why You Must Have Health Insurance

Buying an insurance policy helps one be financially prepared against health risks

With the constant increasing prices of healthcare in our country, and with the ever-rising instances of diseases, health insurance today is a necessity. Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are part of life. One cannot plan and get sick but one can certainly be prepared for the financial aspect. One of the ways to be financially prepared against uncertain health risks is by buying health insurance.

Health insurance is a type of insurance coverage that pays for medical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. There are different types of health insurance plans, such as individual health insurance, family health insurance, critical illness insurance, etc. Purchasing health insurance is an integral part of financial planning.

Health insurance provides people with a much needed financial backup at times of medical emergencies, but it is an observed fact that till date, medical care in our country still remains largely as an expensive affair. According to various reports, India still continues to have the lowest health insurance penetration in the world. However, the government’s focus towards health schemes, new initiatives like Ayushman Bharat Yojana, and capital expenditure towards healthcare may ameliorate the situation.

There are innumerable reasons to have a health insurance policy in place, and if you have a family to support, you can buy a family health insurance to take care of the medical needs of your family. However, the health insurance premium that one has to pay to avail a good insurance policy varies for different people and is based on a number of different factors.

How Health Insurance works?

The individual, also known as the insured, pays a certain amount (subject to conditions) once each year, known as premium, which keeps your insurance policy active. This Policy will mainly cover hospitalization expenses. The policy included the covers such as hospital bed, surgeon’s fees, nursing, operation charges, and other things.

If you undergo treatment in a hospital that provides a cashless service. Then you only need to give your medical policy details to the hospital. And the hospital directly claims the money from the Insurance Company. But if the hospital does not provide cashless service, then you need to pay the medical bill first. And later by submitting the relevant documents, bills, and receipts to the insurance company. They will refund the money to you.

Health Insurance works

Importance of Health Insurance

Buying a health insurance policy for yourself and your family is important because medical care is expensive, especially in the private sector. Hospitalization can burn a hole in your pocket and derail your finances. It will become even tough, if the person who brings in the money, is now in a hospital bed. All this can be avoided by just paying a small annual premium which would lessen your stress in case of medical emergencies.

A good health insurance policy would usually cover expenses made towards doctor consultation fees, costs towards medical tests, ambulance charges, hospitalization costs and even post-hospitalization recovery costs to a certain extent.

Benefits of having a Health insurance Policy

Cashless Treatment

If you are insured, you can get cashless treatments as your insurance company would work in collaboration with various hospital networks.

Pre and post hospitalization cost coverage

Insurance policy also covers pre and post hospitalization charges up to the period of 60 days, depending on the insurance plans purchased.

Transportation Charges

Insurance policy also covers the amount paid to ambulance towards the transportation of insured.

No Claim Bonus (NCB)

This is the bonus element which is paid to the insured if the insured does not file a claim for any treatment in the previous year.

Medical Checkup

Insurance policy also provides options for health checkups. Free health checkup is also provided by some insurers based on your previous NCBs.

Room Rent

Insurance policy also covers room expenses depending on the premium being paid by the insured.

Tax Benefit

Premium paid on Health insurance is tax deductible under section 80D of the Income Tax Act.