Life is unpredictable. One moment you’re healthy and living your best life, the next you are feeling sick and looking at bankruptcy. For most people, it usually takes one accident or illness to completely destabilize them and their finances, even with savings. With healthcare costs being what they are, no one would want to cover them out of pocket, and that’s where health insurance coverage comes in.
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What is Health Insurance Coverage?
In simple terms, it is a type of insurance coverage plan that pays for your medical, surgical, and depending on the insurance plan, dental costs, or reimburses you (the insured) for medical costs paid out of pocket. Such plans are offered by medical insurance companies in exchange for monthly premiums. These companies each have a network of healthcare providers who offer discounted medical services to the insured.
Why Do You Need Health Insurance?
Healthcare in the US is famously expensive, and unless you have very large reserves of funds, you may be one illness away from bankruptcy. Medical insurance is aimed at providing you with the best medical services without putting undue strain on your finances. How does it do so? Well, it provides coverage against;
- Costly medical expenses like ambulance charges, consultations, tests, hospitalization charges, and drug costs.
- Critical illnesses affect both your health and finances in drastic ways. Certain health insurance policies offer coverage against critical conditions like stroke, heart attack, or cancer. Since these conditions are usually more expensive to treat, such a policy could be a lifesaver.
- Cashless medical claims come into play when you use your insurance company’s network of healthcare providers. As long as your medical expenses fall within the assured limit, the insurance company will cover them directly. You’ll have to fill a pre-authorization form which will be forwarded to the company for approval, after which it will pay your medical expenses.
Types of Health Insurance Covers
- Individual plans cover one insured person’s medical expenses.
- Family plans are basically individual plans but with dependents added to the policy. They provide coverage for one or more family members in exchange for a single premium.
- Critical illness plans cover specific critical ailments like heart attack, stroke, and cancer.
- Senior citizen medical insurance offers medical coverage to anyone over the age of 60. Perks include critical illness coverage, cashless hospitalization, and pre-existing disease cover.
- Personal accident insurance provides coverage for injury or death, resulting only from accidents.
- Maternity and pregnancy insurance offers coverage during the duration of pregnancy. However, most insurers require a waiting period of 10-12 months of paid maternity coverage before covering pregnancy and birth.
- Unit linked health plan is a combination of investment and health insurance. Under this plan, your premiums will be used to invest for capital appreciation, which will then be used to cover your medical expenses. They are mainly offered in India.
Health insurance coverage offers people a way to access high-quality medical services without breaking the bank. And with the variety of options at hand, you’ll be sure to find a plan suited to you and your family’s medical needs.