Why do you need Health Insurance?

Roshni Bhagtani


Why do you need Health Insurance?

Why Health Insurance?

We have learned a lot from this pandemic and one of the most important aspects was Health Insurance. Surely we have all come across someone we know who was admitted to the hospital and the bill was mounting each day.

In one scenario, the only income earner in the family was in the hospital. And the mounting hospital bills have exhausted the family savings.

The future is always going to be unseen and if you had to, unfortunately, go through such a situation then it can put immense pressure on the whole family or even a generation to come.

How Health Insurance could protect you ?

In 1999 Insurance Regulatory And Development of India (IRDA) was formed. The role of IRDA is to safeguard the interest of policyholders and regulate the Insurance sector of India.

Health Insurance is nothing more than a form of protection given to you so that if an unforeseen event occurs in the future, the expenditures you have paid are either reimbursed or paid directly by the Insurance company.

Life Insurance or Health Insurance

The purpose of life Insurance is to replace a deceased person's income. It is a contract between an insured person and an Insurance company in which the Insurance company agrees to pay the policy amount upon the insured person's death or after the maturity of life Insurance.

Health Insurance as said earlier is a form of protection against illness and saves you from hospital bills. So, which is more important: life Insurance or Health Insurance? Ideally, you should have both. If you are married or have dependents, you must have both life and Health Insurance.

Five reasons you should have Health Insurance

Important Asset

You are a most important asset and Health Insurance is like an investment to protect you. As the phrase goes, "Health is Wealth," you can work because you are Healthy. As a result, your Health is worth investing in.

Savings are saved

Assume you have a yearly salary of Rs. 7 lakhs. It may take two to three years to save seven lakhs, but it may just take eight to nine days to receive a seven lakh hospital bill. So Health Insurance not only protects you but also your savings.

Medical inflation

India is becoming a popular destination for medical tourism, as more individuals travel here to receive medical treatment. But due to the pandemic, travel was restricted; however, this will not be the case in subsequent years. The expense of Health care is expected to rise as a result of rising demand.

Early is better

This is the Insurance policy's thumb rule: the earlier you buy the policy, the lower the premium. As we grow older our Insurance premium goes on increasing it is always best to opt for Health Insurance at a younger age.

Rise in lifestyle diseases

Modern civilization comes at the expense of stress and a sedentary lifestyle. According to statistics, one in every three Indians under the age of 60 suffers from a heart attack, one in every three Indians develops hypertension, and India has 62 million diabetics. We need to accept the fact and get ourselves insured to fight lifestyle diseases.

Eight things to check before buying Health Insurance

Cashless facilities

Medical costs are immediately settled or paid by the Insurance company under the Cashless facility, provided the hospital is within the Insurance company's network. If you are treated in a non-network hospital, your Insurance company will reimburse you the cost. Ensure that your policy covers cashless facilities as during an emergency hospitalization the Insurance company will directly settle the bills.

Network hospitals

When you purchase an Insurance policy, the network of hospitals affiliated with the coverage is specified. As a result, ensure that your local or neighborhood hospitals are covered and that your Insurance policy has a strong hospital network.

Pre & post hospitalization coverage

Pre-hospitalization costs may include blood tests or medical consultations, while post-hospitalization charges may include follow-up visits and prescriptions, as well as physiotherapy treatment costs following an accident. Select an Insurance policy that covers both.

Claim settlement ratio

It is a percentage of times the number of claims has settled against the number of claims filed in a given year; a higher claim settlement ratio is considered better. You should always look for a provider with a claim settlement ratio of at least 80% or higher.

Co-pay clause

Some Insurance companies recommend a policy with a co-pay clause; it may have less premium cost than other policies. During the settlement of hospital bills, In most cases, Insurance companies will pay a specific percent amount, and the remaining percentage of the bill you have to bear will be as per the policy. You should check whether there is a Co-pay clause and don’t go ahead with such policies

Day-care and maternity benefits

Your policy should consider more than just hospitalizations. Maternity costs have skyrocketed, so make sure your policy covers them. Daycare facilities require hospitalization for less than 24 hours. If the policy is for the elderly, make sure it includes day-care facilities.

No claim bonus

A no-claim bonus is a reward provided to an insurer by an Insurance company for not filing any claims during the policy year. It is a 20 to 50 percent discount on premiums given to the insured upon policy renewal. Look for a policy that provides such benefits.

Lifetime renewability

Life Renewal guarantees that coverage can be renewed regardless of age for the rest of your life. There is a higher chance of you falling ill at the later stage of your life so it is suggested to look for a policy that offers lifetime renewal.

Other factors

● Another thing to consider while purchasing Health Insurance is restoration benefits. This is especially when you opt for family Health Insurance.

● Read the small clauses that mention the Insurance cap. For example, it can be mentioned that maternity benefit is up to 50,000 only.

Still unsure about which type of Health Insurance is best for you or your family?

We are here to help you.

At Equiseed Wealth, a team of experts will simplify this process for you.

Our wealth managers understand your needs and to cater to your needs we have partnered with all the leading Health care providers to give you a wide range of options.