What is health insurance Policy?

[Image source : moneycrashers.com]

Insurance is nothing but risk protection, in the same way health insurance is the pure protection of one’s health. It is grouped under Life insurance. It is being provided by most of the insurance companies in India. Similar to Term policy this one also pure risk protection, if you get any disease it can be used or else this policy will be of no use, let us see how this is very essential in today’s world.

Need for Health Insurance

If we keep ourselves in good health condition, one may presume no need of this policy, but you may not know the daily risk which may result in serious injuries all of a sudden. The increase in medical inflation may not be known to you unless someone close to has been cured for any ailment. Therefore it is best to keep this policy as a friend. Even a close friend may not be able to help you with the money during his difficult times, but this friend i.e having this policy will be of great help which will help you in getting out of hospital easily.

Benefits

Most of the insurance companies offer 24 hour day care treatment also which will be of great help. Ambulance cover, second opinion can be sought if we have doubt with the first medical checkup as it may help in unwanted spending. Pre natal and post natal hospitalization cover is provided. Room rent, doctor fees, surgery fees, medical bills etc will be covered with this single policy. In some of the companies free medical checkup is allowed once in a year as add on benefit. A two year policy will have a reduced premium and protect you from increase in price of premium due to inflation.

Offered in India by

                                                [Image source : healthinsuranceindia.org]

In most of the corporate companies, this is being offered as group policy, where there will be a cap limit to any of the ailments or else there will be co-payment rule. In co-payment person has to share part of his medical payments by himself and the rest will be borne by the insurance company. In India health insurance is being offered by Religare, Apollo munich, ICICI prudential, Max Bupa etc.

Exclusions to check:

The most important thing to check is the waiting period, during which policy will not be covered for specific disease. Any serious pre existing disease has to be told to the insurance companies in advance to get it checked for policy coverage, because once found later the paid premium will be of no use. Diagnostic charges, alternative therapies, abortion, additional supplements, specific ailments, resulting from war are not covered in this policy.

More importantly any savings or investments will be lost in curing disease itself, as life is more important than money we have, any sufficient health insurance policy will be able to protect you from sudden erosion of wealth.