Health Insurance - Basics and Importance

1
Understand Health Insurance
2
Health Insurance Basics

• Health insurance acts as a financial shield and
  covers your medical expenditure in case you fall
  ill. Pay your premiums on time and the policy
  gives coverage to the policyholder subject to
  fulfillment of other terms and conditions. Fixed
  benefit health insurance policies pay a fixed
  amount of money following a claim and without any
  submission of bills from the policyholder, while
  traditional policies provide reimbursement for
  the money spent on actual medical treatment.
  Health insurance in India is offered by general
  insurance companies and life insurance companies.

3
Difference between Mediclaim Insurance and Fixed
benefit health insurance plans

• Mediclaim Insurance policies are
  indemnity-oriented plans. They reimburse the
  policyholder the cost of medical expenses up to
  the sum assured. The policyholder is required to
  submit hospital bills detailing the actual
  expenses incurred, and a successful claim can be
  either cashless i.e. directly to the healthcare
  provider, or to the policyholder as a repayment.
  These policies may have some limitations while
  providing cover for critical illnesses, heart and
  cancer disease which may require special health
  insurance cover or fixed benefit cover plan.
• In comparison, fixed benefit health insurance
  plans give you cover against specific diseases or
  conditions including heart ailments and cancer.
  These new-age policies give you the claim amount
  on first diagnosis irrespective of the actual
  medical costs. You dont need to find a network
  hospital or file for reimbursement claims. This
  is because fixed benefit health insurance plans
  send you the cover amount as soon as a diagnosis
  is made. So, you can get treated at a hospital of
  your choice.

4
Why do you need a health insurance plan?

• Medical emergencies - They can cause huge
  financial burden to people if they do not have
  health insurance. The cost of medical treatment
  rises each year and there are several disease
  which need extremely expensive treatment. Health
  insurance can cover your treatment expenses in
  such cases.
• Increase in medical costs - Healthcare treatment
  costs are rising. Total cost of cancer treatment
  can be 23 lakh if you include chemotherapy,
  targeted therapy and PET scans. Heart ailments
  can cost 20 lakh including surgeries and post
  hospitalization follow-up. You need an
  alternative way to get treated. This is where
  regular health insurance helps.
• A necessity - In todays economy, one cannot rely
  solely on traditional avenues like family support
  and emergency savings. The high cost of medical
  treatment has made health insurance a necessity
  for your health and financial security.

5
Why do you need a fixed benefit health insurance
plan?

• Extra protection - Regular health insurance plans
  can provide you with financial relief when you
  have incurred treatment charges. Fixed benefit
  health plan works as a filler to pay for any
  possible expense that is not covered by the
  regular health insurance plan.
• Timely treatment - Early intervention is more
  likely when you have fixed benefit health
  insurance. With a regular insurance plan, a high
  medical expenditure most often prompts people to
  delay their treatment. This wait can lead to the
  condition becoming more serious, and even
  life-threatening.
• Complete freedom - Since the payment is based on
  diagnostic report, you are 100 free to choose
  the place, time and medium of treatment.