It’s well said, “Take care of your body it’s the only place you have to live in”. However, with the growing complexities and hassling lifestyle in day-to-day living, the major impact has fallen onto your health. Inconsistency in health tends to add cost to your daily expenses along with growing needs and already snailing incomes. So in today’s world with the growing cost of healthcare expenses; healthinsurance is one of the best option which can protect your financial plans. However, every insurance company offers different health policies which come with their own terms and conditions. As such, it becomes difficult to choose the right policy because their terms vary. Therefore, a smart thing to do when purchasing an insurance policy, evaluate the coverage, not just premium. Comparing policies on the basis of premium and coverage will bring clarity and help you make decisions which work as per your needs and requirements.
Health insurance is a type of insurance coverage which covers the cost of the medical and surgical expenses of the insured individual. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider who in return takes care of the expenses upto the decided sum as per the policy agreements. In health insurance terminology, the “provider” is a clinic, hospital, doctor, laboratory, health care practitioner, or pharmacy. The “insured” is the owner of the healthinsurance policy; the person with the health care coverage.
Why you Need Health Insurance?
Most people cannot afford to pay the rising cost of health care on their own. Therefore, you opt for a health insurance facility with which you pay a premium each month, and your insurer pays for a portion of the covered medical costs. This is because the insurer may be able to negotiate better rates from the doctors and hospitals. So instead of paying hundreds of rupees out-of-pocket costs for a doctor visit, or thousands for a surgery, you pay a lesser amount depending on your plan.
Many people have this misconception that healthinsurance is used only when you’re sick, but it’s much more than that. You can avail the advantage of the preventive services your plan offers. By visiting your doctor regularly for check-ups and getting your recommended screenings, you’re more likely to prevent more serious conditions later on. Plus, many health plans offer wellness programs and discounts on health products and services.
How Health Insurance Work?
Once you become a member of a particular health plan, you join a group of people chosen for the same set of plan. This is because insurers categorize it as a risk pool as they measure the amount of risk associated with those people under the stipulated plan.
Some people are at high risk because they are not in good health and likely to use a lot of medical services. While others are at lower risk because they are healthy enough and need less medical services. Apart from this there are unexpected illnesses or injuries which can happen to anyone. Based on these factors, health insurer calculates the estimate money it will cost to cover the collective medical expenses for everyone in your desired plan. Each member of the plan pays a monthly rate, or premium.
When you need health care, you and your health insurer will share the covered medical costs. Your plan will outline your out-of-pocket costs for each service — whether it’s a co-pay, deductible, or co-insurance. Some years you may require lots of medical services, while other years you may need less, but the idea is, having a healthinsurance balances your expenses and avoids paying the full cost of medical services on your own. If medical costs are exceptionally high, your health insurer may have to adjust rates from time to time.