A Layman’s Guide to Health Insurance Coverage

Written by

Health insurance policy, simply defined, is a coverage that a person purchases to secure the expenses that he may probably have to incur in various medical overheads. It is said to be an individual medical insurance, when a person purchases it for himself, and is not provided by any company, employer or organization. Though it is termed ‘individual health insurance’, the policy generally covers the family. These health insurances can keep your lifetime’s savings secure against unplanned expenses, incurred as a result of illness, accidents, hospitalization charges and so on.

Life is unpredictable, so it is highly recommended to get a medical health insurance policy, considering the following aspects:

Accidents in indoor or outdoor areas appear without prior warning

Medical expenses can be very high and often leads to bankruptcy

When you get yourself insured, you can get access to networks of hospitals and medical practitioners at lower rates

Apart from these, individual medical insurance plans cover as many as ten health benefits. These include:

Hospitalization costs

Emergency services

Ambulance services

Maternity care

Laboratory services

Mental health care

Drugs prescribed by the physicians

Wellness and preventive services

Habilitative and rehabilitative devices and services

Paediatric services

Difference between individual medical insurance and employee-based policies

 Employers provide their employees with a medical insurance coverage, which is also termed as ‘group coverage’. On the other hand, individual medical insurance refers to the policy that you buy for yourself and your family. In case of employee-based policies, the companies carry out research and choose the insurance company. Then they pick the plans for the staff. However, instances in the past have proved that companies are often unable to afford these expenses, inviting penalties. It is for this reason that people go for individual health insurance schemes, so that they can enjoy the benefits when required.

In fact, the individual schemes have certain advantages over the employee-based policies:

When you choose an individual policy, you remain open to choices. You are free to choose the company providing the insurance, browse through the options and plans, and select the one that fits your needs.

An individual plan enables the policy holder to have a greater control over the scheme. You can switch your options, plans and even the company at your decision.

Lastly, you enjoy a greater independence, as the policy remains with you, regardless of where you go and which job you do.

Moreover, you should note that when an employer offers coverage for a group, the individual employees cannot get subsidies.

Well, you must have a basic idea by now regarding a health insurance. Now, the next step is choosing the right scheme for yourself. The reputed health insurance companies offer several schemes. It is necessary to go through these plans and get the policy customized. You may want to include one or more members of your family in these schemes. In these cases, it is recommended to choose a family floater plan. It is also possible to include new members in the scheme later on. Check out the plans online and choose a health insurance plan, as per your budget.

Article Categories: