Health Insurance is the prepared savings for the health issues that usually occur unfortunately for a person. It is a legal agreement between the policyholder and an insurance company that pays out all the medical expenditure for the person when he/she is not well.
Health insurance was first used in 1901, so we can say that it is not a modern method to think about, one can completely trust the policy but should be careful with the company whom we are dealing with.
So, one must need health insurance to protect his/her health during a medical emergency. Health insurance is more useful for poor and middle-class people to save their lives from unexpected accidents, and some life-threatening and dangerous diseases like cancer, tuberculosis, tumors, etc.
There are different types of health insurance available they are:
- Individual health insurance: This insuranceplan is meant for an individual as the name suggests. It covers all the medical expenditure for a single person for his/her illness. He/she can include all their family members under the same policy by paying an extra premium. This will get implemented within a period of 2-3 years.
- Family health insurance: This is one of the best insurance policies. This covers all the family members under a single policy, the main advantage of this plan is only one member pays the premium and all the family get the benefits.
- Critical illness insurance: this policy provides the user a big amount of money that deals with some life-threatening diseases. Here patient must be hospitalized to approve the insurance. The disease must be diagnosed to get insurance. The amount is prepaid and pre-decided irrespective of other expenses.
The diseases here included are:
- Kidney failure
- Heart stroke
- Organ transplantation
- Senior citizen health insurance: asthe name suggests this policy is especially for people who are 65 and above. So this is the best policy for our grandparents and parents. It includes the cost of all the expenditures related to hospitalization and medicines. A few other benefits like full body checkups and psychiatric appointments are also available in this policy. As elders are more prone to illness the premium for this insurance is a little high compared to other policies.
- Personal accident insurance: Frequent accidents are happening nowadays due to various reasons people used to end up their lives in accidents, and some are becoming disabled. So this policy is mainly for the people who meet with accidents. Other benefits of this policy are some of the plans in this policy provide education facilities and orphan benefits for the children. This policy also deals with the loans of the person.
- Group health insurance: This is for a group of people, especially in a company for the employees. Its premium is very less compared to an individual insurance policy.
- Disease-specific health insurance: This is for specific diseases that require a lot of money to get recovered. For example, corona which just shaken the world for almost 2 years. So some insurance companies came up with this type of policy. One such policy is Corona Kovach which is more useful for dangerous diseases that requires a lump of money and a long time of treatment.
Advantages of health insurance:
- To meet the expenditures for treatment.
- To save the life from unexpected illnesses.
- To keep the family protected.
- Tax benefits.
- Very useful for poor and middle classes.
- Financial security against the increased medical costs and other hospital expenditures.
Disadvantages of health insurance:
- Premium will be increased with age.
- Waiting is required for pre-existing disease coverage.
- Extra load on premium.