Health Insurance – Why they are a must for all?

What is the need to spend money on health insurance? Do you think in the same line? If so, you are one of many who think the same. Most people tend to think that health insurance is something you have to think only when they are older or in poor health.

An accident, natural disaster or contagious disease can happen to anyone at any age. These situations can drastically alter a person's life, causing huge costs for hospitalization and aftercare. Pollution and lifestyle change brings on disease, even younger. Meet people with heart disease or diabetes is common today. Diseases such as cataract that was previously associated only with old age are now gradually the solution with those 50 years.

A mediclaim or health insurance policy is a contract in which the insurer agrees to provide reimbursement to the insured in case of hospitalization or other expenses. The definition of such expenses is broad and covers all expenses related to the right from the diagnosis of the disease for treatment, needed surgeries, medications and any other necessary medical assistance.

Some reasons why you need a health insurance policy:

• Uncertainties related to health: Anyone can have a health problem at any point in time. Health insurance is the only thing that may support such a situation.

• Medical expenses High: As medical costs rise feel the need for better financial support if you have a medical emergency.

• Tax benefits: Under the Income Tax policy in India you get a tax benefit and can save on the tax payable by maintaining a mediclaim policy. This is done to encourage investment in mediclaim.

The health insurance policies are generally of two types:

• Policy Individual Health Insurance: This is a plan that a person can choose a sum insured to meet the requirement of his / her. Sum insured will be chosen to cover that person throughout the life of the policy. The plan may be individually chosen by any / all family members. It is market practice to encourage more people to join by offering mediclaim premium discounts on family

• Health Insurance Policy Family: In an insurance policy the family can ensure the whole family in a plan, the sum assured. This means that no single policy coverage for a fixed amount that can be claimed by any member / all of the family. The premium paid for a policy. Usually insurers collect premiums according to the older members of the family and family size. But he has opted for family mediclaim cannot get any discount for the family.

Health insurance policies, however, have their own limits and conditions that must be followed and met for insurance claim. Some common constraints may include:

• Complaints that are known in advance, ie before the policy is purchased are not covered under mediclaim policy.

• Complaints that are grouped in a year or two exclusions, who will automatically become payable if you cross a waiting period.

• Expenses beyond the amount agreed in the contract are not paid as part of the claim by the insurance company.

• Most insurance companies have a list of hospitals that enable cashless hospitalization to policyholders. While a health can serve in any hospital or hospital records the fulfillment of the requirements specified by the Insurer, cashless facility is available only to hospitals in networking for the insurer. In other hospitals, the insured must spend out of pocket and claim for reimbursement. Mediclaims not reimburse treatments performed through homeopathy, naturopathy, ayurveda medical science or any other than allopathy.

Health insurance premium go up on the basis of age and insurers tend to have an age limit beyond possible demand for medical records to decide whether to offer coverage or they can deny coverage because of your age.

Year free continuous application is encouraged by insurers offering either a cumulative bonus is added to the sum insured without any additional premium or offering a premium discount.

Therefore, it is prudent to ensure younger and get the maximum benefit from health insurance policies.

Meanwhile Mediclaim is a common term used for health insurance, various insurance companies floating such plans with unique names.

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