Medical insurance is a part of proper financial planning, especially in covering outfalls of medical expenses for individuals and families. Within this fast-paced world where medical costs are always on the rise, there will always be a need for a safety or medical insurance net. This article discusses the main points of this insurance and its benefits and types. Also, it has a guide to choosing the right plan.
What is Medical Insurance?
It is the health insurance policy that covers all the medical and surgical expenses of the mediclaim holder. This can pay for a claimant for expenses arising due to illness or injury or pay the care provider directly. This financial protection shields individuals from unexpected medical bills.
Why is Medical Insurance Important?
State Farm Insurance, Coverage Options ExplainedMedical insurance safeguards a person from heavy health care bills. Without medical insurance, the cost of medical expenses of a hospitalization or surgery or treatment may exceed the budgeted amount within no time. However, this insurance ensures timely medical treatment without bothering about one’s financial situation.
Types of Medical Insurance Plans:
There are several types of medical insurance plans so as to cater to all the individual needs. A few common ones are described as under:
Individual Health Insurance
It covers one individual. It is a better plan for those who do not receive any insurance policy through the employer.
Family Floater Plan
It provides medical insurance coverage of the entire family under one policy. It is generally less expensive in terms of premium than individual plans.
Group Health Insurance
As an employer-provided kind of medical insurance, it covers the employees and sometimes their families. Premiums are usually shared by the employer and the employee.
Critical Illness Insurance
This type of plan will pay out a lump sum if a policyholder suffers from a critical illness, such as cancer, heart attack, or stroke.
Senior Citizen Health Insurance Plans
These senior citizen health insurance plans cover individuals who are above 60 years of age, thus taking care of the treatment needs in hospitals and particularly for all age-related diseases.
Why Medical Insurance?
There are many reasons why medical insurance is a good investment for any family or individual:
Cashless Treatment: The majority of the insurance companies have managed to draw up a network of hospitals where the treatment is available without paying cash in advance. He or she directly draws a settlement with the hospital.Medical insurance is not just the cost of the hospital bill, but the expense that occurs even before hospitalization and after being hospitalized, like diagnostic tests and follow-up treatments.
Tax Benefits: It provides a tax benefit under Section 80D of the Income Tax Act, and policyholders are eligible to claim against the tax which is liable to be paid by an individual.
•Coverages for Tritical Illness: Certain policies cover for critical illnesses. This, therefore, assists in giving some financial aid in case of dealing with life-threatening conditions.
•Cost of the Ambulance: Most policies will still provide coverage for your ambulance service should the situation require the patient to be transferred to a nearby hospital.
How to Choose the Best Medical Insurance Plan?
Choosing the right medical insurance plan is a very hard decision. Here are a few points to consider
• Sum Insured : Ensure that the sum insured is adequate enough in order to cover any medical cost that may come up. It also depends upon your age, number of family members, and your location of residence while determining the coverage amount.
• Network Hospitals : Check whether the insurer has tie ups with hospitals in your area or not, more so, if you want cashless treatment to be provided there.
• Premiums vs. Benefits : Compare the various premiums that different policies are charging while weighing the benefits offered. Sometimes, a slightly higher premium may offer better coverage or additional benefits like critical illness coverage.
Waiting Periods: Most medical insurance policies have a waiting period before they start covering pre-existing conditions. Choose a plan with a shorter waiting period if that is essential.
• Claim Settlement Ratio: Monitor the claim settlement ratio of the insurer, meaning how many claims are paid as against the total number received. The higher the ratio, the more reliable.
Common Exclusions in Medical Insurance:
However much insurance covers and provides you with several packages, it is necessary to know what medical insurance denies. Some common exclusions include:
Pre-existing conditions during the waiting period
Cosmetic surgeries unless in a case of accident
Non-prescription drugs and treatments
Self-inflicted injuries or trying to commit criminal activities
Abuse treatment for alcohol and drug dependency
Conclusion:
Medical insurance is the best way to cover all types of medical expenses, so that one is never bankrupted from some medical-related adversity. This would enable one to know the different types of medical insurance, the benefits one reaps from it, and how to select the right plan for oneself.