What is health insurance?

Posted by sammi maheshwari on November 30th, 2017

There is no debating the fact that people fall ill many times during their lives. Having medical insurance can ensure that the person insured receives the benefit of cashless treatment or that his/her medical expenses are reimbursed if and when the said person undergoes medical treatment. Health insurance plans basically reimburse the insured person for medical and/or surgical expenses borne due to an injury or illness that results in the need for hospitalization.

When a person with medical insurance is hospitalized due to an illness or injury, the insurance company provides the policy holder with the ability to undergo hospitalization at a specified network of hospitals and medical institutions without paying any money to the institute. Alternately, the insurance company will reimburse all medical expenses incurred by the insured person if and when he/she falls ill and spends money on treatment. Health insurance plans also come with tax benefits since they are exempt from tax under section 80D.

Importance of opting for medical insurance –

It is very important to take health insurance, especially in countries such as India which have very low human life index rankings. In India, people routinely fall ill and with medical expenses sky-rocketing, medical treatment costs for illnesses or injuries can become very expensive. Any person who has had to undergo medical treatment or undergo hospitalization can vouch for the fact that treatment costs are prohibitively expensive, even for minor medical treatments. Having health critical illness insurance in addition to a regular health insurance plan can provide for increased financial coverage in the unfortunate event that a policy holder becomes critically ill.

Treatment costs are getting more and more expensive by the day. Having a health insurance plan ensures that medical emergencies do not turn into financial emergencies. It is important to plan for health emergencies and eventualities and set aside some amount of money towards taking an appropriate health insurance plan. Doing so provides the insured person a relatively stress-free and hassle-free process with respect to hospitalization and treatment costs. Many times, when a person is suffering from an illness or injury, having to fund the medical treatment or hospitalization can lead to a lot of added suffering and trauma, as well as complications in the hospitalization process. Having a health insurance plan is a good way to ensure that a person has a smooth journey through the entire process of illness or injury diagnosis to subsequent medical treatment and cure. Moreover, one can avail tax benefits as per section 80D, which add to one’s over-all savings.

In this day and age, with ever increasing hospitalization and medical treatment costs, it is important for almost everyone to have a health insurance plan. There are many plans available in the market, including critical illness insurance plans, and one must carefully consider various offers before choosing the one that is most appropriate to one’s needs.