What is Health Insurance? An Exhaustive Guide
Health insurance is a contract between individual and an insurance company that provides financial protection for medical expenses up to a certain limit in lieu of premium paid by an individual. It is a crucial financial safety net that safeguards individuals and families from the fast rising expenses of health treatment.
What Does Health Insurance Cover?
Health insurance generally covers a range of Healthcare Costs, including:
1. Doctor Visits: Regular health screening, medical consultations, and Medications etc.
2. Hospital Stays: Room and subsistence, operation, surgical procedure and other hospital expenses.
3. Pharmaceutical treatment: Prescribed medications by the doctor.
4. Laboratory Tests: MRIs, X-rays, and many more tests used to examine health conditions.
5. Surgical Procedures: Emergency and Non-Emergency operations or surgeries.
6. Room rent and Ambulance Charges: It covers room rent and ambulance charges though in some polices cap is stipulated.
7. Pre and Post Treatment Expenses: Expenses incurred up to 90 days before treatment and 180 days after hospitalization are also covered in certain health insurance policies.
How Does Health Insurance Work?
Health insurance works like any other insurance. It pools together premium collected from a number of policy holders and meets the expenses of policyholder who faces any medical emergency which required hospitalization, during the currency of the policy.
Why is Health Insurance Important?
Health insurance is vital for multiple reasons:
1. Financial Protection: Serious illness or accident can happen at any time. The cost of treating the medical emergency can be very high. Therefore, it can put a huge financial burden on whom such medical emergency has happened and derail his normal life. Health insurance protects individuals and families from such situations and enable them to have a peace of mind and lead a normal life.
2. Access to Healthcare: Health insurance provides access to necessary medical care, including preventive care and treatment for chronic conditions.
3. Reduced Financial Stress: Health insurance reduces the financial stress associated with medical expenses.
4. Improved Health Outcomes: Health insurance encourages individuals to seek medical care when needed, leading to improved health outcomes.