Why Health Insurance? | Health and Beauty Care

Article by Nikhil Naik

The term health insurance (popularly known as Medical Insurance or Mediclaim) is a type of insurance that covers your medical expenses.The concept of health insurance is new in India but its awareness is growing fast. Health insurance comes in handy in case of severe emergencies. Life is unpredictable, insurance can make it innocuous and secure from bearing large financial loss. A health insurance policy is a contract between an insurance company and an individual. Sometimes it is associated with covering disability and custodial needs. The contract is renewable annually.

Health insurance is inexpensive and carries the assurance and freedom from insecurities that threaten normalcy now and then. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health plans are acquirable in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.

Medical expenses are sky high these days. An appointment with a physician might churn out large bucks. The elaborate medical treatment expenses could take into your savings meant for the future. Health insurance policy kicks in to ensure that you get the required treatment and your pocket is still under control. Having health insurance is important because the coverage helps people get timely medical care and improve lives and health. It covers the risk of financial difficulties in the event of long illness. The awareness has been enormous in the last couple of years. This must have been in response to the series of uncertainties people have observed in current times like the terror attacks.

Types of Health InsuranceHealth care costs have seen a phenomenal rise in the current times. This has led the customers to insure not only themselves but their family members also. It will cover future medical expenses and other related stipulations if it ever arises. The need to insure has gained more importance amongst older generation who is either retired or will retire in the near future. Let us discuss the types of medical insurances acquirable in the market.

Medical InsuranceThis is typically a hospitalization cover and reimbursement of the medical expenses incurred in respect of covered disease or surgery while the insured was admitted in the hospital as a patient. Different types of medical insurances are acquirable in the market like individual medical insurance, group medical insurance and overseas medical insurance. There are health policies that reimburse you the actual hospitalization cost for treatment of any disease and are offered by the non-life insurers only. These policies are popularly called ?Mediclaim? policies. Other types of health insurances are provided by both the life and non-life insurers.

Critical Illness InsuranceCritical Illness plan insures you against the risk of serious illnesses in return of a premium you are required to pay. This gives you the same security of knowing that a guaranteed cash sum will be paid if the unexpected happens and you are diagnosed with any one of the critical illness. Sometimes a critical illness can change your lifestyle in addition to help within the home or the family. In this type of health insurance plan, the insured receives a lump sum amount within a few days of diagnosing critical illness. Once this lump sum is paid, the plan ceases to remain in force. Typically, a critical illness plan would wage cover for the illnesses mentioned below.

BENEFITS:Benefit depends on the policy you select and the coverage it provides. Here is a list of basic coverage provided by most of the health policies.

1) It helps securing a superior future by paying a fraction as an expense this day called the premium.2) It reduces saving large amount of financial losses, risk of financial breakdown in case of costly medical and post-illness care.3) It definitely induces a sense of security to the insured.4) It provides financial security to the family members.5) It covers your hospitalization and medical bills.6) It also covers disability and custodial bills.7) You can avail tax benefits on the premium paid under section 80D of the Income Tax Act.The ideal factor, you can also opt for health insurance policies even after the age of 60.

About the Author

Hi I am Nikhil Naik the Founder and CEO of Naik Wealth, Mumbai, India. We are one of the leading investment advisor which offers wide portfolio of Mutual Fund, Life & General Insurance, Systematic Investment Plan (SIP), NRI services.

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