Health insurance is the financial coverage for medical expenses. It is a contract between the insurance company and an individual, where individual pays a premium and in return insurance company provides financial protection against medical expenses such as surgeries, consultation fees, hospitalization, cost of medicines.
How health insurance works-
Individual pays a premium to insurance company, which provides them with medical coverage up to a certain limit. If individual incurs some expense related to medical than they will be entitled to receive the reimbursement of the medical expenses or insurance company can settle the medical bills with the hospital directly, as opposed to the patient paying out of pocket and then requesting reimbursement . But medical expense will only be reimburse if your medical expense is covered by your policy and comes under their partner network, if it is not then can raise a claim with your insurance company after getting discharged by submitting the required documents.
Benefits of health insurance-
• Critical Illness Cover-
Apart from basic healthcare expenses, health insurance also covers critical illnesses, such as cancer, health diseases, kidney ailments and more.
• Protection of Finances-
The primary benefit of having health insurance is the ability to save money on medical expenses. Healthcare costs can be substantial, especially during emergencies or serious illnesses. By paying regular premiums, you protect your financial well-being by transferring the burden of high medical costs to the insurance provider.
• Cashless Hospitalisation-
This implies that the insurance company settles the medical bills with the hospital directly, as opposed to the patient paying out of pocket and then requesting reimbursement.
• Benefits from Taxes-
The Indian government permits taxpayers to lower their tax liability through the purchase of a health insurance plan. Specific tax benefits related to health insurance apply under Section 80D.