Health Insurance: A necessity and not a substitute

One of my friend, Rishabh, used to tell me how he felt that health insurance is a substitute and not a necessity at all. However, one incident in his life changed his perception forever.

One of my friend, Rishabh, used to tell me how he felt that health insurance is a substitute and not a necessity at all. However, one incident in his life changed his perception forever.

His wife thought of health insurance as an important need for the entire family. https://tackk.com/gf0z4cAs a result, she ensured that there’s a comprehensive health insurance in place to protect her family members from any future emergencies.

It was last month, that their son, Amit underwent a treatment in hospital. The inundated medical costs put Rishabh in dire stress. However, due to his wife’s cautious approach in understanding the importance of health insurance, she had availed to the same. This wise step of his wife to purchase health insurance long back saved the day. It was the comprehensive health insurance policy which guarded the family against huge financial expenses. In fact the policy itself was able to cover the entire hospitalization treatment. What else? Rishabh soon realized the significance of health insurance and changed his perception from “health insurance- a substitute and not a necessity” to “health insurance- a necessity and not a substitute.”

I am sure after reading this you wouldn’t want yourself and your family members to stay uncovered against such events which are unpredictable. The golden words still reflect the sublime truth, “Health is wealth.” Considering the huge and rising medical and treatment expenses, having an appropriate health insurance policy becomes vital.

Read further to learn some essential things you need to know about health insurance policy.

#Health insurance provides various advantages like:

  • You’re assured of compensation during any health emergencies. The compensation can cover large portion of your medical costs up to the entire cost of medical and treatment. This depends on the policy you have selected.
  • You will find it of great help during any critical illness.
  • Besides most of the plans are tax-friendly instrument which allows you to save tax as per section 80D of Income Tax Act.
  • There are generally 2 types of products under Mediclaim policies.
    • 1. Indemnity products-
    • Here, the insurer bears the actual treatment cost which goes up to the sum assured value of the policy.
    • The insurer will ask the policy holder to provide all his current medical bills along with other essential documents to get the policy claim.
    • For instance, the treatment cost of a person is Rs. 2 Lakhs and the sum assured is 5 lakhs. The insurer will pay only the treatment cost of Rs. 2 lakhs.
    • 2. Benefit products-

    Here, the insured receives the entire lump sum amount as per the sum assured value. A common example is critical illness policy.

    Illustration- Say an insured is discovered to be diagnosed with cancer. The treatment cost totals to Rs 40 lakhs. The insurer will pay the entire sum assured value of Rs.5 lakhs as per the policy. One does not require submitting bills to the insurer, after which the policy terminates.