What is Health Insurance? Should I Take It?

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Introduction

Drastic changes in life may result in a number of inconveniences requiring immediate attention. For example, the development of a disease can compel an individual to seek medical attention.

Depending on the type of the disease, it is a fact that monetary resources will be spent on managing or treating the disease.

Securing comprehensive Health Insurance has therefore become a necessity considering we are in an age where health, fitness, and well-being have taken center stage.

What is Health Insurance?

Health Insurance is a type of insurance that comes in handy during such situations. It is a form of insurance that caters for unforeseen medical costs caused by a disease or serious accidents.

Generally, health insurance covers a wide range of expenses including medical costs, hospitalization, medication costs, and medical checkup costs.

Often referred to as Medical Insurance, health insurance functions to safeguard and cushion individuals against unexpected medical expenses.

Besides safeguarding families, health insurance assures the future, enabling you to take control of your financial and physical health as it opens doors to a wide range of healthcare services and programs.

This comprehensive guide seeks to unravel the world of health insurance, to inform and keep you up to date with the latest knowledge.

Exploring the latest trends will equip you with the knowledge you need to navigate the "world" of health insurance and make informed decisions by taking charge of your health.

How Long Does Health Insurance Last?

Basically, health insurance can be regarded as a contract or a type of agreement between an individual and an insurance company.

The individual is obliged to pay a certain amount regularly in exchange for cover as agreed. The money paid is referred to as a premium and is paid monthly.

So how long does this agreement last?

Well, it typically lasts for one year. When the financial year of a company comes to an end, there may be a need for some readjustments here and there.

What Are The Groups of People That Need Health Insurance Cover?

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Health Insurance covers a diverse group of people: the elderly, pregnant women, men, and even children.

Also, people earning a low income can be assured of health coverage.

In most cases, children are put under their parents' cover plan until they reach a suitable age to acquire their own independent plans.

In the United States, health insurance programs differ from state to state but they have a standard mode of operation.

An employer is obliged by law to pay a certain amount of premium for the employee to cover the health risks.

This mode differs if a person is self-employed. For people without any form of formal employment, it is possible for them to buy insurance directly from private insurance companies to obtain health coverage.

What Are The Types of Health Insurance Policies?

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Basically, there are two fundamental forms of health insurance that exist. They include:

• Mediclaim Plan: This is the most fundamental form of health insurance policy. It primarily works by catering for hospitalization bills when an individual is admitted. Note, that the patient needs to provide accurate records of medical expenditure before the financial costs can be met. Full family coverage is offered by most policies but only for a specified amount that is agreed upon. In this form of health insurance, a patient receives medical attention and informs the insurance company to meet the medical bills and procedures expenditure.
  
  
• Critical Illness Plan: As its name suggests, a critical illness health insurance plan covers only specific conditions that are life-threatening. A key difference between the critical illness plan from the Mediclaim plan is that a customer gets compensated based on the critical illness coverage and not hospital bills like the former.

How To Pick A Suitable Insurance Policy

The insurance world is complex and that's exactly why you need guidance. Securing health insurance is one of the best moves you can make as an individual. 

But how do you decide which one to go for?

Well, to make this critical decision, you need to ensure that the benefits from health insurance serve your needs.

Some of the things you may consider include:

• The extent of medical conditions covered.
• Changes in the premium amounts.
• Age groups and special groups of people covered by the insurance.
• The extent of the hospital networks that are accessible for treatment.
• Whether the insurance company allows the usage of the reimbursed money as monthly income in case you can no longer work because of a disease.
  

Now after considering these factors, you will decide whether you need Mediclaim to cater for your hospitalization and critical illness insurance plan to cater for your lost earnings and other expenses that accrue due to illness.

Do I Need a Health Insurance Policy?

Just like death, medical issues are inevitable. At some point in life, you may unluckily develop a sickness that may strain your finances if you are not really prepared.

Nobody desires to develop sickness, but it just happens. On the other hand, you may get involved in a serious accident that may require medical attention.

Securing health insurance helps to tackle these economic challenges. Healthcare cost is steadily increasing, becoming unaffordable for many.

Therefore, you certainly need a health cover to cushion you against these challenges.