What is Health Insurance and How it works?

Posted by amrina alshaikh on August 7th, 2019

Many of us come across this term called health insurance in our day to day lives at some point or the other. After that, we are eager to know more about it so we make research on them to learn what it means, how it works, what is it used for and why is it benefiting us. This blog is predominantly based on what defines health insurance, what aspects it covers and how can you get one.

First of all, health insurance is a medical insurance policy that provides financial aid to policy holders at the time when they are hospitalised for medical treatment. The health insurance plan includes complete cashless coverage of the medical treatment, the policyholder undergoes, day-care treatment and pre-hospitalization to post-hospitalization expenses.

Secondly, the health insurance company provides its clients with cashless hospitalization at a network of hospitals enlisted in the plan an individual has opted for. It also provides reimbursement for the incurred expenses. Moreover, the cost of health insurance is subsidized to the policyholder in the form of tax exemption under section 80D of Income Tax Act, 1961.

Thirdly, in this era, where diseases are spreading rapidly, the cost for curing and treating these diseases is also on the rise. Therefore, health insurance policies are set up to work in favour of you by giving you cashless hospitalization even at times when you are miserable or in an emergency. They are not doing this for free. Keep in mind you have to deposit a certain amount of money to these insurance providing companies every month as premium from your salary or income, whatever you earn. Of course, they have kept their margin of profit while providing you with the service.

There are many insurance companies providing different policies in the market, out of which you have to pick and choose the one which you feel would be the best option available for you by comparing them all and sorting it out from among the best health insurance plans from top insurers or at lowest premium rates. In short, health insurance works to protect you from the high costs of health care. It supports you pay for doctor visits, hospital stays, prescription drugs and important preventive care and you can choose from a variety of health insurance plans with different levels of coverage that will fit your needs and your budget.