Need for Health Insurance
WHAT IS HEALTH INSURANCE
Health insurance plan is an insurance coverage or package offered by medical and general insurance companies which covers both the medical and surgical expenses of the insured. In other words Health Insurance reimburses the insured for every expenses made in relation to an illness, injury or any health related issue.. An Insurance package can be bought for an individual, an entire family, employees of an organization, domestic household staffs etc. The term of the plan is ideally for a period of one year and in some cases one can buy the plan for a term of two to three years as well, which is renewable upon its expiration. With a health insurance plan , one is entitled to adequate health care and medical facilities in cases of an emergency or in a pre-planned medical expense, without worrying about the financial costs. A Health insurance plan usually covers the entire hospitalization expenses subject to the maximum sum insured and terms of the policy. A cashless facility is also available where you can get the best medical care from any hospital of your choice, which can be selected from a wide variety of hospitals in one’s environs and all the medical expenses will be settled by the insurance company directly. This way the insured can immediately get treatment without having to source for funds before assessing medical facilities.
INSURED AND INSURER IN HEALTH INSURANCE.
The Insured is an Individual who buys a Health Insurance Plan or on whose behalf an Insurance Plan is being bought.
The Health Insurer is the Insurance company that sells health insurance.
Therefore when a health Insurance package has been bought by an individual, a contract has been entered between the insured and the health insurer, which requires the health insurer to pay some or all of the medical expenses in exchange for a premium.
A premium, is the amount or price, an individual or organization pays in exchange for the health Insurance policy. It also serves as a liability for the health insurance company as the insurer must provide coverage for any health related claim of the insured under the Insurance policy.
WHY A HEALTH INSURANCE PLAN IS NECESSARY
The thing about medical emergencies is that they can hit one at anytime regardless of age, gender or lifestyle. Since they are unpredictable, It is necessary that, one should be prepared for it, hence the need for an Insurance plan. Health Insurance protects every member of the family against huge financial losses and debts that can be incurred from unexpected medical emergencies. For an annual premium, the insurer pays for your hospitalization and other medical expenses as mentioned in your policy.
