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Health Insurance Plan

Health Insurance is a kind of insurance that provides coverage for medical expenses to the policy holder.

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Health Insurance


Health Insurance


Many of us aren’t aware of what is health insurance? Alternatively referred to as, medical insurance or simply medical insurance nor simply med claim, it is basically a type of insurance coverage that covers the cost of an individual’s medical and surgical expenses. The individual, also known as the insured, pays a fixed sum (premium), every year for the health cover. In case of a Medical problem that necessitates surgery/hospitalization, the insured is reimbursed by the health insurance company either directly in casher indirectly through payment to the hospital / clinic.

Taking health insurance is one of those things an individual cannot ignore given the rising costs of treating health problems. Inflation in medicate or medical treatment is a lot higher than general inflation or inflation in other categories like food and clothing. While inflation in most categories is in single digits, inflation in medicate is often higher. Take cancer treatment, the cost of which today could vary in the region of Rs 2 lakhs to upwards of Rs 4 Lakhs per round/cycle, depending on the stage or type of cancer. Even if we take the base treatment rate of Rs 2,00,000 prevailing today, we could well be looking at over Rs 3,22,000 after five years assuming 10% annual increase (CAGR) in cost of treatment, Cost escalation of this nature could also prevail in other forms of treatment/surgery like heart surgery or knee replacement surgery.

Arranging large sums of money at the last moment to treat medical emergencies is difficult if not impossible for most individuals. Hence being prepared is the only way out. One way to plan for medical emergencies better is by opting for Health insurance plans. Health insurance offers considerable leeway in terms of disease coverage. Certain health insurance plans cover as many as 30 critical illnesses and more than 80 surgical procedures. The health insurance plan disburses payment towards treatment regardless of actual expenses. The policy continues even after the benefit payment on selected illnesses.