Everything know about health insurance: what is it, why is it needed, types of plans, benefits & how to pick a right one. Secure your healthcare future today.
Tags: Health Insurance, Health Insurance Benefits, What is Health Insurance?, Affordable health insurance plan in California, Healthcare coverage and Medical insurance plans.
Introduction
Healthcare charges are going higher and higher in the world, where USA, UK, Canada, Australia and Germany are on top list. One trip to the hospital, one unexpected medical emergency, can wreak financial havoc on individuals and families. Here is where health insurance matters most. Health insurance acts as your financial safeguard so that, if one day you wake up sick or injured, you won’t be responsible for a massive bill for things like being hospitalized, seeing a doctor, getting prescriptions filled, receiving preventive care and/or surgery — based on which plan you opt to go with.
Here, we will go over it all: Why everyone needs health insurance, the different types available to you, how it works and tips on choosing the right type.
What is Health Insurance?
Health insurance is a policy (a contract) between an individual (the insured) and an insurance company. In return for a monthly or annual premium payment, the insurer agrees to pay some or all of the policyholder’s health care costs. Coverage varies by plan, but in general care can include preventive services like annual checkups along with emergency care, surgery, prescription drugs and mental health treatment.
First and foremost, insurance is designed to limit the financial impact of medical costs while also providing immediate access to health care without placing undue stress on one’s wallet.
Why Health Insurance is Important?
Protection Against Financial Ruin – The cost of medical care doesn’t come cheap. HealthCare insurance protects you from the unforeseen health expenses.
Quality of Care – There are better and worse hospitals, more specialized doctors and timelier treatment found for those who are insured.
Preventative care – Most plans include coverage for preventative services like vaccines, screenings and well visits, so you can catch health issues before they become serious.
Happy Thoughts – Having your medical expenses covered just means you can concentrate on getting better instead of worrying about money.
Legal Requirement (some countries) – ie In the USA, health insurance allows you to avoid penalties and minimum coverage.
Types of Health Insurance
Various types of plans are available from different countries and insurance companies. The most common ones include:
1- Individual Health Insurance
Pays for the medical treatment of one person. Ideal for single filers with no dependents.
2- Family Floater Plan
The whole family is covered under one policy, covering your spouse, and children too, at times even the parents.
3- Employer-Sponsored Health Insurance
Plenty of companies provide healthcare coverage as part of the benefits offered to employees. Premiums are usually paid for by the employer and employee both.
4- Government Health Insurance
Services in national health care (Medicare and Medicaid in the United States, NHS in the UK or public insurance in Germany) enable coverage of low to no cost for those who need.
5- Private Health Insurance
Purchased directly from insurance providers. Plans like these frequently provide more flexibility and better benefits than government plans.
6- Critical Illness Insurance
Covers critical illnesses, such as cancer or heart attack etc. Pays a cash lumpsum from the date of diagnosis.
How Health Insurance Works
Premium: The amount you pay every month or year to maintain coverage.
Deductible: The amount of money you are responsible for paying out-of-pocket before an insurer will begin covering the balance.
Copayment (Copay): A fixed amount you must pay for a particular service or medication, including a doctor visit.
Coinsurance The percentage of expenses that you share with your insurer after the deductible has been met.
Network Hospitals/Providers Most insurance companies have a list of hospitals, where you can avail cashless treatment. Out-of-network care may cost more.
Key Benefits of Having Health Insurance
Cashless Treatment – Often, you can receive treatment without paying in advance; the insurer arranges payment directly with the hospital.
Pre-Existing Disease Coverage – For chronic diseases such as diabetes, asthma or hypertention a number of policies cover this after a provisional period (ONLY FOR NON LIFE THREATENING DISEASES).
Maternity & Child Care Benefits – Few plans however offer maternity, newborn and vaccination coverage as well.
Tax Benefits – Some countries provide tax benefits on health insurance premiums, which can help you save taxes.
Worldwide Coverage – Some premium plans provide benefits for treatment at foreign locations.
Tips for Choosing the Right Health Insurance Plan
Evaluate Your Needs – Looking at the size of your family, medical histories and healthcare needs.
Compare Plans – Never take the first thing offered to you. Compare deductibles, premiums and coverage limits.
Review Hospital Network – Opt for a company that has the network of good hospitals, so you can get one nearby towards your location.
Find Coverage that Offers a Wide Range of Benefits – You need to be sure that you are covered for hospitalization, day care treatments, ambulance charges and critical illness.
Know the Exclusions – All policies come with exclusions (what they do not cover). Always read the terms so there are no surprises.
Premium and Coverage Balance- Lower premium might tempt you but may have limitations in terms of benefits. Go for a budget option that offers decent protection.
