A Quick Guide to Understand Individual Health Insurance

A Quick Guide to Understand Individual Health Insurance

In today’s world, financial security is an undeniable priority in life. When it comes to medical expenses, it has become even more crucial considering the skyrocketing healthcare costs. In this situation, opting for a health insurance policy can be a wise decision that protects your savings in a medical emergency.

What is Health Insurance?

Health insurance is a financial instrument to cover medical expenses in one’s life. It is designed to reduce the financial burden on the insured person arising out of a medical condition. The cost of receiving quality healthcare can cause severe financial distress on a person’s savings. 

With an appropriate health insurance plan, you can prevent that from happening. It is especially crucial in a time when the world is struggling to recover from a pandemic. Understanding how to get corona health insurance cover can strengthen your financial standing during these uncertain times. 

First, you must be familiar with how standard health insurance works to optimize the benefits. 

How Does Health Insurance Work?

There are various types of health insurance policies available in India to cater to diverse needs. For instance, you can get insurance for specific critical illnesses that provide coverage against a list of life-threatening diseases. 

It is a means through which the insurer shares the cost of medical care with the insured person. Usually, it can be done in these two ways:

  • The insurance provider reimburses the policyholder for the medical bills incurred during a visit to the hospital. It can include treatment charges for various illnesses and injuries, including surgeries, hospitalization costs, etc. 
  • Alternatively, insurers also offer cashless claim facility with health insurance plans. In this scenario, the insured person receives treatment in an affiliated hospital with the insurance company. After that, the expenses incurred are directly settled between the hospital and the insurer. 

Here are some important terms related to health insurance that you should know:

  • Sum Insured

The sum insured in health insurance refers to the amount of money that the insurer is liable to pay in case of an eventuality. It is predetermined at the time of purchasing the plan. It operates on the principle of indemnity and is the maximum amount of compensation that you can receive in a year. 

  • Network Hospital

Each insurance provider has a list of affiliated hospitals where they offer cashless treatment for the insured person. A network hospital of your insurer is one that is affiliated with the insurer. When buying a health plan, you should look at the nearest network hospital to get the benefits conveniently. 

  • Waiting Period

The waiting period in health insurance is the duration after purchasing the plan when the benefits are not active. It can vary depending on the type of policy and the insurance provider as well. Be sure to look at the waiting period in your health plan to avoid any misunderstandings in a time of need.

  • Pre-Existing Disease

Any medical conditions that a person has before buying health insurance are known as pre-existing disease. In general, most health insurance plans do not cover pre-existing diseases until a few years of the policy have been completed.

Why Do You Need Health Insurance?

Here are some reasons why a health insurance plan may be the best investment today:

  • Lifestyle Diseases

The fast-paced lifestyle that we lead today has resulted in several health problems at a younger age. While there is no control over life’s uncertainty, you can manage the financial aspect with an adequate health insurance plan. 

  • Medical Expenses

The cost of healthcare is almost impossible to cover with your savings today. If you are without additional financial support, a medical emergency can be fatal financially and otherwise. 

  • Protect Your Savings

An earning individual has to cover various financial responsibilities within their income limit. The harsh reality is that a medical emergency can exhaust your savings quickly. In a difficult time, financial distress can only add to your problems. 

To conclude, you should consider all these factors before you make your choice. Once decided, you can choose from the various options available on reliable insurance companies like Tata AIG. You can view their plans on their website and select as per your requirements. 

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