Insurance is all about tackling unseen risks that might affect an individual finance to a greater extent. In India, insurance is seen as a savings instrument and not as a risk mitigator. Moreover health insurance in india is less penetrated than life insurance.
So what is health insurance?
Health insurance reimburses the expenses of medical treatment,hospitalization and other expenses related to the treatment of your disease. There are various clauses with different health insurance policies which defines the expenses which it covers.
Why is health insurance needed?
As medical emergencies do not come well planned and these are completely unpredictable, when a person is diagnosed with a disease and requires treatment, the immediate requirement of fund for treatment takes a big toll on a person's finance and hence affects his planned investments.
With health insurance, you can be least affected with your finance, since the insurance companies takes care of all your expenses with respect to the treatment. There are even cashless claims that insurance companies offer when you get treatment from a network of hospitals that the insurance companies has tied up with.
How costly is health insurance?
To your surprise, health insurance is very cheap compared to life insurance. A health insurance policy of 5 lac in a public sector insurance company costs you roughly 6,000 per year which is 500 rs/month and very much affordable by most of us.
By spending 500 rs/month on health insurance, you are avoiding a risk of paying 1 or 2 lacs when you go undergo treatment in case of any medical emergency.
What is cashless claim?
If you are planning for surgery(bypass etc) and you are aware of the schedule, you can inform the insurance company of the same and the insurance will take care of all your expenses in the hospital and you need not spend a single paisa for your treatment. This cashless claim can be availed only at the network of hospitals that the insurance company has tied up with.
What if my employer gives me health insurance?
In today's world, most of the employers offer free health insurance to all its employees and their dependents. So people do not want to take a personal health insurance plan,but WAIT, think of the following scenario. When you have decided to leave your company and join the next company in 10 days time and what if you have met with a medical treatment during the span of those 10 days. In that case, you have to pay for your treatment since you are not under any employer's health insurance scheme during that span.
So don hesitate to take a health insurance plan, since you are avoiding a huge risk of payment by minimal contribution per month torwards health insurance.