A health emergency can happen without warning and medical treatment can sometimes be very expensive. This is why Health Insurance has become a part of financial planning.
Health Insurance is designed to give help for eligible healthcare expenses that are covered under a policy.
How Does Health Insurance Work?
A person buys a Health Insurance policy. Pays a premium. In return the insurance company gives coverage that follows the policys terms and conditions.
If the insured person needs treatment the insured person can make a claim.
Depending on the Health Insurance policy and the hospital treatment may be available through a cashless facility or the policyholder may pay the expenses first and later apply for reimbursement.
What Is Cashless Treatment?
Under cashless treatment the insured person can receive treatment at a network hospital without paying the whole covered amount up front provided the insurers process and policy conditions are met.
What Is Reimbursement?
In reimbursement the policyholder usually pays medical expenses first and then sends the required documents to the insurer for reimbursement.
Important Health Insurance Terms
Beginners should understand these terms:
– Premium: The amount paid for the policy.
Sum insured: The coverage amount specified under the policy.
– Waiting period: A period, during which certain benefits may not be available.
– Deductible: An amount that may need to be paid by the policyholder before eligible insurer payments begin.
-Co-payment: A specified portion of an expense that the policyholder must pay.
– Exclusion: A condition, treatment or situation that the policy does not cover.
Why Is Health Insurance Important?
Without Health Insurance, a major medical emergency can hurt savings and monthly budgets.
Health Insurance can lower the impact of eligible medical expenses and give greater financial preparedness.
What Should You Check Before Buying?
Do not choose a Health Insurance policy only because it has a premium. Check:
– Coverage amount
– Waiting periods
– Exclusions
– Deductibles
– Co-payment
– Network hospitals
– Claim process
– Policy limits
Final Takeaway
Health Insurance is mainly a tool. Before buying a Health Insurance policy understand exactly what is covered and what is not. A little research today can help you make an informed decision when a medical emergency occurs.
