A cardiac arrest is not an unheard condition and is fairly common among people in India due to unhealthy life style. But, the point here is that just like how you can’t predict if your favourite cricket team will win the cricket match or not, similarly, you just never know when you will fall ill and generate a big fat medical bill. This is where health insurance comes into the picture.
Read on to learn more about health insurance and debunk the myths associated with it.
What is Health Insurance?
Health insurance is an insurance policy which covers both medical and surgical expenses of the insured individual. It either provides a cashless treatment or you can claim reimbursements for your hospitalisation and other related expenditures.
The Need for Health Insurance
India reportedly ranks very low on human life index. Medicare is increasingly rising every year and inflation in Medicare is akin to inflation in food. In fact, Medicare is where people come out with heftier bills than even shopping bills.
Instead of being bogged down with questions like ‘Which health insurance to buy?’ or ‘Will it or provide a complete cover,’ instead buy a good health insurance policy which includes the entire hospitalisations costs, medical and surgical costs respectively.
Health insurance is a fool proof way to safeguard both health and money at the same time. A health insurance policy is akin to the vital organ for human beings.
Uses of Health Insurance
Healthcare is getting crazy expensive, and it helps to have assistance in paying off that bundle of bills. Following are some uses of health insurance:;
- a) Cashless treatments: Every insurance company has tie-ups with various hospitals across the country, and such hospitals are called ‘empanelled or network hospitals. Here you don’t need to pay anything and all the expenses will be borne by the insurance company.
- b) Pre and post hospitalisation: The pre and post hospitalisation costs are taken care by the health insurance policy of ranging from 30-60 days.
- c) No Claim Bonus (NCB): This can be availed if the insured has not claimed any treatment expenses in the prior year. It can be availed to increase the sum assured d) Medical check-up: The insured is generally eligible for free medical check-ups, and especially if they have good No Claim Bonus history.
- e) Tax benefits of health insurance: Under Section 80D of the income tax act, you are eligible for tax benefits. The premiums paid by you will have their own tax rebates, capped up to a limit of INR 25,000 till the age of 60 years.
- f) Health Insurance by Employer: This covers the hospitalisation expenses of the employee, his/her spouse, children and even parents. The premium for the same is paid by the employer and not you. You can also take an additional personal health insurance policy in case you feel the cover provided by your employer is insufficient.
5 Myths Uncovered About Health Insurance
Health insurance in itself can be quite a task to manage for some and an incomprehensible product for others, but once you understand its complexities and technicalities, there is no looking back.
Here are a few myths on health insurance, debunked:
Myth 1: Health insurance provided by the employer is enough
Nearly all organisations provide employees with a health insurance cover under their employee welfare programme, but what happens when you quit the job or are between switching jobs? Many people bear this notion that having a corporate health insurance policy is enough for an individual or his family which is untrue.
Employer-provided health insurance may not extend to your parents/dependants or you may be required to give co-payment. Also, it will only be valid till you are associated with the organisation, and purchasing a health insurance policy on your own becomes an expensive deal the more you age or your health deteriorates.
Myth 2: Smokers are not eligible for a health insurance policy
It is a common myth among the circle of smokers that they are not eligible for a health insurance policy due to a prolonged smoking habit. The truth is that they are eligible for the same, but given that the risk associated with them would be higher, they would be required to pay a slightly higher premium amount than others and made to undergo a strict medical routine check-up before they are offered adequate health insurance.
Myth 3: Fit people don’t require health insurance
While remaining fit and in shape will always be in vogue, it doesn’t necessarily translate to being shielded from illnesses like malaria or dengue or accidents which can befall even the fittest. In such cases, hospitalisations may easily be worth lacs of rupees, depending on the severity of the illness/injury and it is at such a time where the health insurance policy will help.
Myth 4: Only hospitalisation bills are covered under the health insurance policy
It is a myth that only hospitalisation charges are covered under a health insurance policy. In fact, cataract operations, kidney removal, dental treatments, doctor consultation charges, ayurvedic and even unani treatments are covered under a health insurance policy.
Myth 5: Only an agent can get you the best policy
Many customers still rely on the age-old method of buying a health insurance policy – via an agent. However, the agent you may buy the policy from may not be physically present or associated with the insurance company by the time you make a claim. An agent can have your best interests at heart, but it is you who has to see which plan qualifies for you best.
In fact, online health insurance policies are relatively cheap, and websites like Coverfox.com have myriad health insurance policies and you can choose the one best suited for your needs.