Last Updated on January 24, 2023
The quality of human life depends on human wellness and health. To nurture good health, people eat quality food, hit the gyms, do yoga and buy health insurance. Having an excellent well-being is a part of wealth creation.
Health insurance is a contract between an insured person and the insurer in which the insurer or insurance company undertake a guarantee to compensate for the medical expenses incurred by the insured in case the person falls ill or has an accident that leads to his/her hospitalization.
The medical treatment and hospitalization expenses are paid by insurance companies. Mostly the insurance companies have an agreement with the leading hospitals to provide cashless medical treatment to the policy holder. In case insurance companies have no agreement with the hospitals, then the insured gets the treatment cost reimbursed by the insurance companies. There are various other types of insurance available in the market that provide protection coverage from different perils occur in daily life.
Types of Health Insurance Plans
1. Individual Health Insurance
This plan cover the health-related expenses and hospitalization expenses of an individual who has opted for the insurance plan. Insurance premium is determined by the insurance companies as per the age and previous medical history of the insured person.
2. Family Health Insurance
Under this plan, a health cover is provided to all family members against illness, accidents, multiple diseases under a single plan. The amount of insurance premium is decided on the basis of the eldest family member’s age insured under this policy.
Family health insurance offers a fixed sum assurance for the family members which can be availed by all the family members or by the individual among the family.
3. Senior Citizen Health Insurance
This insurance plan is design for health coverage of senior citizens or individuals over 60 years of age. The insurance provide financial aid for health issues, illness, hospitalization, or any other health treatment during old age.
The insurance premium charge is high, as compared to other health insurance policies because old age persons are more prone to health issues as compare to young people.
4. Surgery and Critical Illness Insurance
This plan provides health expense cover for critical illness which is fatal to life or expense for surgery of that critical illness. Previous medical history of the person is examined by the insurer before issuing the insurance policy.
As the medical and treatment expenses of this illness are very high, the insurance premium amount charge by the insurer is also high.
5. Maternity Health Insurance
This plan covers the cost including pre and post-natal care, child delivery expenses of the newborn babies. Some insurance plans also cover the newborn baby expenses up to a certain period of time mentioned in the maternity health insurance policy.
6. Personal Accident Insurance
This plan cover the hospitalization expenses of the insured person in the event of an accident. Uncertainty can occur at any time and one can mitigate the loss of finance due to injuries caused by accidents. The insurance premium is decide upon the amount of accident cover taken by the insured.
7. Unit Linked Health Insurance
This plan offer a unique combination of insurance and savings both at the same time. This policy helps in building a corpus of funds by investing a portion of the insurance premium amount in investment avenues. It can be used to meet those expenditures which are not covered by the insurance plan.
Benefits of Health Insurance
1. Cashless Treatment
The person insured under health insurance can avail the benefit of cashless treatment as most of the insurance companies have collaboration with hospitals to provide such facility. The medical fee and treatment cost is compensated by the insurance companies.
2. Pre and Post Hospitalization Cost Coverage
Some health insurance policies cover pre-hospitalization and post-hospitalization expenses up to the period of 2 months depending upon the type of health insurance policy purchased. It will not only help in recovery of the person but also provide financial aid.
3. Free Medical Check-ups
Health insurance policies also provide facility for medical checkups. A free health checkup can also be provided on the basis of the previous no claim bonus.
4. No Claim Bonus
It is a special element of the health insurance that is paid to the policyholder, if he/she does not file a claim for any medical treatment in the previous year.
He is graduate in M.B.A Finance, and owner of the financial blog “Saifwealth.com“. He started this blog to share his knowdelge in the field of finance and to help people understand and aware about the financial world.