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IMPORTANCE OF HEALTH INSURANCE

Health insurance policy is an assurance which provides immediate financial help when any medical emergency arises. It is a contract between policy-holder and the insurance company which covers medical expenses that might occur due to illness, injury or accidents. If anyone posseses health insurance policy, then some or all the medical expenses will be borne by the insurance company, for which an insured person is supposed to pay a certain amount as premium. Health insurance is vital because cost towards good medical facilities and hospitalization can be financially stressful. With rising medical expenses, a health insurance can provide the added protection needed by an insured person.

There are two ways by which an insurance company compensate the medical expenses for an insured person -  i) Cashless treatment :  Here, the policyholder is not supposed to pay anything to the network hospital or nursing home as the insurance company pays the amount directly; and  ii)  Reimbursement  : Here, the policyholder is supposed to settle their medical expenses first and later ask for reimbursement from the insurance company.

Purchasing a health insurance plan is something that we all avoid till the time it is important is understand. Before doing a health insurance policy, it is crucial to understand various benefits of a health insurance plan as medical emergencies can knock anytime and could make a big hole in one's pocket. Therefore, it is advisable to buy a health insurance policy at a very early age, where one can have the comprehensive coverage at an affordable premium cost, plus one can also get the advantage of tax deductions on premium paid.

Some of the basic importance of health-insurance policies are as follows :

1)      It facilitates a person to get proper medical treatment without any worry of high medical cost.

2)      It offers specialized coverage for critical illness.

3)      It offers an affordable premium for youngsters.

4)      It provides cashless claim benefit, which allows the insured person to take care of instead of worrying about lumsum medical bills.

5)      It provides tax-benefits under section 80D.

Individual or Self Health Insurance Plan :   An individual health insurance policy is issued under the name of a single policy holder, which means that the sum insured coverage  and the benefits of the policy is totally dedicated to the insured and covers no one else. Here, the individual purchases the policy to maintain their own health which in turn provides financial help in case of their own medical emergency.

Family Floater Health Insurance Plan :    Family floater policy is one policy which aims to provide the sum insured coverage to individual and also for his or her family members. Rather than taking a single policy for each member of the family, the family health insurance plan is a better option as it acts as an umbrella for the entire family. Here, the sum assured coverage is shared by all the members who have been covered under the same plan.

However, it is advisable to have a separate plan for the senior citizens  parent or parent-in-laws as it will prove to be a more affordable option. Similarly, if any member in the family has a huge medical history, then it is also better to have a separate plan for them rather than covering them in the family floater plan.