Thursday, July 21, 2022

What Is Health Insurance & Its Types

What Is Health Insurance: The health insurance policy is one form of insurance that covers medical expenses that are incurred because of illness. 

These costs could be related to hospitalization costs, the expense of medications, or consultation charges.

Different types of health Insurance

There are fundamental kinds of health insurance:

1. Mediclaim Plans: 

Mediclaim (also known as hospitalization) plans are among the simplest kind of health insurance plans.

They pay for treatments when patients are taken to the hospital. The payment is based upon actual expenses incurred at the hospital, by submitting the original bill. 

A majority of these plans will cover the entire family up to a specific limit.

2.  Essential Illness Insurance Plans: 

Critical Illness Insurance Plans cover specific life-threatening conditions. The diseases may require prolonged treatment or even a change in life. 

Contrary to hospitalization plans payment is based upon the Critical Illness coverage that is selected by the purchaser and not based on actual costs that are incurred at the hospital. 

The policy gives the flexibility to make use of the funds to change your lifestyle or take medicines. Additionally, it can be used as a substitute for income in the event that you’re unable to work because of illness. 

The pay-outs under these plans are based upon the diagnosis of the illness and the medical bills are not needed.

3. Senior health insurance for citizens:

These health insurance policies are specifically designed for seniors who typically are over 60. As older individuals tend to be more likely to file an insurance claim, the amount that is due is greater in such instances. 

In addition, many insurance companies don’t require a medical screening or exclude diseases that are pre-existing prior to giving senior citizens insurance since the ageing process is often associated with health problems.

4. Critical illnesses insurance policies:

A critical illness insurance policy covers serious diseases like heart attacks, kidney problems cancer, paralysis and more. In these instances, the policyholder is paid a lump sum amount upon diagnosis of the disease. 

In contrast to individual policies, no hospitalization is required to claim the cash. This type of plan is recommended for those with a history of diseases in their families.

5. Personal Accident insurance policies:

Accidents are common and the cost they bring can take all your savings. An individual accident insurance policy covers the costs of medical treatment required after an accident. 

Most often, a personal accident insurance policy will cover three types of situations: partial disability, total disability as well as death due to an accident.

6. Maternity health insurance policies:

These plans are specifically designed for women. insurance plans for women. These plans cover the post-natal and prenatal costs along with ambulance and delivery costs. 

Also, a baby insurance policy is included wherein expenses associated with the baby’s birth are covered for the specified amount. The majority of maternity plans require the requirement of waiting for a certain time before they become active. 

It is therefore advisable to purchase a maternity insurance plan immediately after you get married. It is also possible to use them as an addition to an existing insurance policy.

7. Unit Linked Insurance plans:

Unit Linked Insurance Plans or ULIPs are insurance plans that double as investment options. If you pay the cost of the premium, a small portion of it will be used in offering protection to the plan as usual. 

The rest of the cost is put into investments in an amalgamation of debt and equity. With ULIPs they not only protect your health, but you also make money to come in the future thanks to the dividends.

To summarize:

Illness can strike anytime and the costs of treatment medications, treatments and other medical expenses could run into the thousands. 

So, purchasing health insurance is one of the initial steps of any financial planning. There is a variety of health plans available in India. You should consider your requirements and personal circumstances before deciding on one.

Why do you require Health Insurance now?

Nobody anticipates falling unwell or suffering injury However, serious illnesses could befall anyone at any point. The expense to treat the disease may put a huge financial strain on the savings you’ve amassed over the years. 

This means you may be forced to compromise in providing your child with the best education or even default on the mortgage payments. Today, the price of medical care is constantly increasing.

For e.g.

Herceptin cost of cancer treatment is approximately 110,000 for a bottle of 444 mg. The weight of the patient will determine how much. patients typically require 17-19 bottles of treatment over the course of a year. 

This is 18-20 million just for the medication. Also, add hospitalization expenses and doctor consultation fees chemotherapy expenses, and so on. Your total expenses will be over 25 lakhs.

Also Read: Insurance

These expenses, which are already high are growing each year. Many sensible people have taken steps to ensure their medical condition as quickly as they can. 

Insurance for health is considered a lifelong benefit that allows you to require money in times of a crisis. A disease could wipe from your savings all you’ve made for your children’s wedding, education, purchasing a home, or retirement.

You don’t want the dreams of your family members to be destroyed by an illness, particularly when you could have secured yourself financially. 

It is advisable to get an insurance policy for health in your early years and when you’re fit. As you age and get sicker, not only will your insurance premium rise, but, you also stand a chance of being denied health insurance policy through insurance companies. insurer. company.

AMIT KUMARhttps://technologyburn.com/
Amit is the Chief Technical Manager of “Technology Burn”. He has a very deep interest in Web Development and Programming. He has a 6-year experience in web Developments Well, he is the power of our team and he lives in Chandighar. Who loves to be a self-dependent person. His passion, dedication and quick decision-making ability make him stand apart from others.

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