What is a medical insurance plan? What are the benefits of a medical insurance plan?


What is a Health Insurance Plan? An overview

“Health is wealth” and there is no supporting argument about it. We often try to enforce as many health precautions as possible by enrolling in a gym, seeing a nutritionist, or having regular health checkups, but as we get older, taking care of our health regimen becomes more and more expensive, and may be due to medical bills and any chronic illnesses to add. This is where insurance or health insurance in particular plays a gigantic role.

Health insurance is your savior in case of injury, accident or illness that saves you expensive medical bills and ensures your financial security when you are not on your feet. Let’s find out how. In this article, we will explore the important details such as who, how and why, which are related to the health insurance meaning.

What is health insurance?

Health insurance is a type of insurance policy that helps you cover your personal medical expenses, especially expensive surgeries, prescription drugs, or other medical aid due to illness, accident, or illness. ‘a wound. These can be for a fixed term and help the insured get reimbursed for heavy medical bills.

Today, most companies include health insurance in employee compensation packages. Such insurance has many other benefits for the insured apart from medical coverage such as tax exemption, quality care, etc.

Why take out health insurance?

If we do a fact check, we can see that the healthcare market in the country has been estimated at US$372 billion by the end of 2022. This implies that spending on your medical bills as well as fees medical are will definitely increase in India.

Understanding the requirements, it is said that around 73 million Indian citizens are diagnosed with type 2 diabetes which is expected to increase at a staggering rate to around 34 million by 2025. Additionally, many people in the country are seriously ill. like high blood pressure and heart problems. These require extensive care and require large medical bills which may not be affordable for everyone.

These distressing figures demonstrate to us not only the importance of availing yourself of a health insurance policy, but also of finding the right one at the right time to avoid any financial distress that could be caused by the absence of one. These policies are known to offer extensive and comprehensive coverages for your healthcare expenses in exchange for periodic premium payments which can be made as per the convenience of the policyholders.

Benefits of a health insurance plan

Hospitalization costs

The main benefit of any medical or standard medical insurance is to cover hospitalization costs. If you contracted an illness while your insurance plan was active, you can obtain the full benefits of your coverage, such as any treatment required for a critical illness or any hospital costs related to an accident. An insured can also be protected if the bills are greater than the sum insured if he has the extension policy in his coverage. Such benefits help an insured to be less worried about financial expenses in the event of an unfortunate circumstance.

Coverage for expensive surgeries

A comprehensive health insurance policy helps the insured get coverage for the most complicated and expensive surgeries such as open heart surgery. Other insurers may not cover the full expenses for the same, but with health insurance, you can easily be available to mitigate the cost of the same.

Enjoying Premium Facilities

With enhanced coverage in your health insurance policy, you can easily avail quality treatment without any financial burden. Indeed, many health insurance companies offer policyholders additional cover to be able to receive treatment in premium hospitals and not have to compromise on the quality of your treatment.

No claim benefit

Most health insurance coverage, for any claim-free year, provides the insured with extensive discounts or premiums. It may also provide for a sum greater than that which has been insured at no additional cost. Over the years, this will help the insured to minimize his costs which are payable for an annual premium.

No co-pay

The health insurance coverage of most renowned insurance coverage extends the total cost of treatment. This zero co-payment facility allows the insured to be able to mitigate the financial burden he may have to bear at the time of recovery. Most highly recommended policies also provide extended benefits on these covers at no additional cost.

Types of health insurance plans in India

  1. Standard health insurance: Standard health insurance is generally provided for an individual. These health insurance policies cover the cost of an insured’s health-related bills. These standard coverages can also be extended or obtained to cover the medical expenses of the parents or spouse and children of the insured.
  2. Family health insurance: This is different than a standard plan. In these policies, only one policy in relation to the sum insured can cover medical expenses and health coverage for the whole family. These plans can also be used for single person treatment. In short, also covering the benefits of a standard insurance policy. However, the premium for these policies is likely to be higher than for standard policies.
  3. Health insurance for seniors: Generally, family health insurance does not cover medical costs for seniors due to their complexity. In such a scenario, a policy tailored to meet all medical expenses for people over 60 can save their lives. These plans provide full coverage against the premium paid for all types of illnesses related to old age.
  4. Joint or group health insurance: These are mainly used by companies to extend it to employees. The premium for this group insurance is paid by the employer. These health insurance policies are considered for their cost effectiveness and are taken as a measure of employee retention.
  5. Health insurance with other benefits: Many health insurance plans cover extended benefits for insured persons, such as maternity benefits. These guarantees are extended to all pre and postnatal care expenses that may be incurred during pregnancy. Such policies also divert the benefit of critical illness. These are potentially fatal diseases and therefore likely to be accompanied by a significant medical bill. A critical illness benefit covered by your insurance policy helps provide financial protection for the optimal treatment required and helps them focus on their recovery.

When you have health insurance, the estimated cost of your treatment may be higher than the sum insured. In these situations, you may benefit from an additional service on your existing coverage. This will save you the extra cost and hassle of purchasing a separate policy.

Health insurance plans are very beneficial in mitigating the cost of health care over your lifetime. These are therefore significantly different from what life insurance plans offer you. In addition, benefits such as cash per diems which are provided by most stipulated institutions allow individuals to compensate for periods of non-remuneration due to hospitalization. Given the sanctity and demand of a situation, health insurance is a must to lead a stress-free life of medical bills.


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