What is health insurance?

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Health insurance often termed as Mediclaim cover is a type of insurance which covers a person against medical expenses arising from medical emergencies such as accident or illness.

To get covered for the mentioned events, insured pays premiums to the health insurer and in returns insurance company provides financial assistance to insured in the event of accident or illness or gives sum insured to the nominee in the event of death of insured person.

Similar to Life Insurance, medicare cover is a legal contract between insurer and insured; under whose terms and conditions insured person agrees to pay premiums and in exchange for, insurance company agrees to pay for medical expenses for a specified limit or up to the sum insured in the event of medical emergency.

Indemnity to be paid would depend on the type of health insurance policy.

What is health insurance

Why do we need health insurance?

Rich and poor both need health insurance. It is generally observed that when a person, not having medical policy, gets hospitalized due to an accident or illness, the family of the patient falls into financial crisis due to expensive medical bills.

The family puts everything at stake to save an important member of their family. It should do that because money can be earned but family member.

A health insurance policy can save family from many financial hardships. This is the major reason people, mostly breadwinner of the family, buy mediclaim insurance to safeguard their family from difficulties.

Illness or accident can knock in anyone's life and in most of the cases it cannot be avoided. But we can take measures to get ready, financially, if something like this happens.

The Lancet report reveals,eye-brow raising stats that every year 5 million people lose their lives due to not having access to medical care.

Therefore, it's very important to have a health insurance policy which will ensure your and your family's health.

One should buy a medical insurance policy if:

  • he is not financially strong enough to cope with such situations
  • his family depends on him
  • insurance cover is not provided by the employer.

You advised to read different types of health insurance plans post to know which health plan you should buy.