What is Health Insurance?
It refers to a contract between the insurance company and the person insured wherein the insurance company takes the responsibility to compensate for the medical expenses related to illness and accidents.
The rising importance of Health insurance
The level of health care spending in India is currently over 6 percent of its total GDP. This is considerably higher than that in many other developing countries. The rising medical expenses especially in the private sector make it very essential to buy health insurance for yourself and your family.
Key benefits of Health insurance
- Free coverage of healthcare expenses
- Pre and post hospitalization cost coverage
- No claim bonus (NCB)
- Free medical check-up
- Tax benefits under section 80D
- Donor expenses
HEALTH INSURANCE A MUST IN CORONAVIRUS (COVID-19)
With the recent coronavirus (COVID-19) outbreak expected to affect 50% of the world population, the need for health insurance becomes all the more important.
FAQ- Does health insurance cover corona (COVID-19)?
Answer- Yes, it does. As per the circular of IRDA, health insurance companies need to provide cover for the medical expenses incurred during the treatment and quarantine period. (as per policy terms)
Following the advice of IRDA, various insurance companies have come up with dedicated plans for covering the expense of the treatment of coronavirus (COVID-19).
For Example-
- Star Novel Coronavirus (CoV) (COVID-19) Insurance Policy (Pilot Product)
- ICICI Lombard introduced COVID 19 Protection Cover
Studies have proved that there are around 60% chances of developing serious health problems after the age of 40. Looking at the ever-rising Hospitalisation expenses and the increasing number of health problems in society, one should realize the fact that health insurance is a must-have.
Consider the above principles before buying Insurance
Written by- Yogesh Bansal
Great Lakes Institute of Management
