Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.
There are two basic types of health insurance:
No one plans to fall ill or get hurt, but a serious illness can strike anyone at any time. The cost of treating the illness can cause serious financial strain on the savings you have accumulated over time. This means that you might have to compromise on providing your child the best quality education or defaulting on your home loan payments. Today, the cost of medical treatment is continuously rising. For e.g. Herceptin, a cancer medicine costs approximately ₹ 1,10,000 for a vial of 440 mgs. Depending on the weight, a patient usually requires 17-19 bottles for treatment over the course of a year . That's ₹ 18 - 20 lakh just for the medicine^. Then add hospitalisation costs, doctor consultation fees, chemotherapy costs, etc. and your overall expenses could exceed ₹ 25 lakhs. These costs which are already very high are increasing every year. That is why most smart people have taken necessary precautions to insure their health as soon as possible.
Health insurance is a living benefit, where you would need monies at the time of dire need. One disease can drain out all the savings you have made for your children’s education, marriage, for buying a house or even retirement. You would not want your family’s dreams to get shattered just because of an illness, especially when you could have protected yourself from it financially. It is beneficial to take a health insurance policy when you are young and healthy . As you get older, not only does your premium increase, but you also stand a chance of being denied a health cover by the insurance company.
Anybody who has already bought a health insurance policy will tell you that buying one is one of the smartest financial decisions any earning individual can make. Now, that you have decided to buy a health insurance policy, you need to know how to select a good health insurance plan that will take care of all your needs. To make this decision easier for you here is a list of benefits any good health insurance plan should offer you:
A mediclaim plan will either reimburse all your hospitalisation expenses or settle the hospital bills via a cashless facility. A critical illness insurance plan will give you a lump sum payout on detection of a critical illness. You don’t have to be hospitalized for the same. If you are unable to work because of the illness, then you can use the amount as a substitute for your monthly income. You can even use the money to cover expenses for doctor visits, medicine purchases, medical tests or any other expense that might arise during this time. That is why you need both – a mediclaim plan to cover your hospitalisation expenses and a critical illness insurance plan to cover your loss of income & other expenses that arise because of an illness.