There’s a lot of talk around insurance – specifically health insurance. No one plans to get sick or hurt but the fact is that illness and injury are a part of life. Nobody can prevent getting hurt but we can make plans to ensure that we’re financially secure in a place where we can afford to get better.
Health insurance can take care of all the risks and costs associated with medical stays – with a few additional benefits, as well. For example, if you have a history of heart disease or stroke – having a health policy can help. You’re more likely to get the care you need, have shorter hospital stays, and less expensive bills.
There’s a lot of jargon surrounding health insurance and a lot of it can sound confusing but it’s easy enough to understand the basics. This is what TABIIB will help you do.
What Is Health Insurance?
Health insurance is a way through which an individual and their family can pay for medical costs without having to rely on direct payments. Essentially, a health insurance is an agreement between the insurance company and the individual (also called the “insured”) wherein the company agrees to pay a percentage of medical costs that the insured individual has incurred.
Health insurance is offered by the government as a mandate as well as by private health companies. Health plans differ depending on the individuals’ needs and requirements.
Generally, insurance companies have tie-ups with all major hospitals so as to provide cashless treatment to the insured.
How Health Insurance Works
The easiest way to explain this is to think of insurance funds as a pool. After you buy a health insurance plan, you pay a premium of a certain amount every month, which is pooled together. So, when you have the need to reimburse, the insurance company dips into the fund pool and gives back that amount to the hospital.
For example’s sake, let’s say a person has had a serious accident. The medical bills add up to X amount. Having a health insurance plan can make a huge difference in the amount that person will pay. Depending on the plan the person has, they’ll pay a small percentage of that amount, say 10% and the rest of the cost is taken care of by the insurance company.
You can choose from a variety of health insurance plans with different levels of medical coverage that fit your needs and budget.
4 Benefits Of Health Insurance
A health insurance policy for yourself and your family is important because healthcare is expensive; private healthcare even more so. Hospitalisation costs can burn a hole in your family’s funds and derail your finances. All of this can be taken care of by paying a small premium every month as part of the policy.
The other benefits of a health insurance policy are:
1) Cashless Treatments
If you’re insured, then you can avail cashless treatments. This is because your insurance company would handle the finances with the hospital directly.
2) Covers Essential Health Needs
Health insurance covers all your essential benefits that are critical to maintaining your health in case of illness or injury. This includes ambulatory patient services, emergency services, prescription drugs, and laboratory services.
3) Pre and Post Hospitalization Coverage
Your insurance policy also covers pre and post hospitalization charges for up to 60 days as well as the expenses incurred towards diagnostic tests, as per the policy.
4) Free Preventative Care
All health insurance plans offer preventative healthcare services, such as vaccines and screening tests, at no extra cost. There is a difference in how a health insurance policy is built depending on the country. However, certain health services are mandated to be administered as part of the policy itself.