Name: Why is health insurance important?
Item: Why is health insurance important?
Author: suniltams@gmail.com

Hi,

Very interesting question. Everyone should understand the importance of health insurance.

“ There is only one thing on earth which money cannot buy is “PEACE OF MIND”.

Before connecting for the subject try to understand benefits available under other insurance products.

1). Life insurance: which pays either on maturity or on happening insured event. The insured event is applicable to riders as well.

Few money-back policies pay during fixed intervals of the policy term. Eg: for a 20 years money-back endowment, pays at every 4th year 20%of SA and so on.

2). General insurance: includes automobile insurance, personal accident, fire insurance, other specialized insurance like marine and all types of non-life insurance.

All general insurance policies pay only on happening insured event post surveyor report.

Principle of indemnity applicable to all types of general insurance policies. It is not applicable to life insurance as life insurance policies are value policies. (it simply means one cannot estimate the value of human life, but product designing, it uses the concept of Human life value to arrive at life coverage required).

It means only to the extent of loss happens.

3). If one looks at above 2 insurance life and general, it is clear health insurance is not included or covered by neither of the products.

Life insurance pays to protect the family lifestyle in the absence of a breed earner of the family and helps to achieve all goals of the family as planned without any disturbance.

What happens if something happens to health and sickness causing due to various health problems. We cannot avoid health problems as we are exposed to various environmental, social, and inherit factors.

We used to hear and see many times, who are suffering from unexpected cardiac, cancer, kidney-related diseases are disposing of their fixed assets like home, jewelry, liquid assets like retirement funds, other savings to meet treatment expenses. Which affects the achievement of further goals linked to spent amounts.

If health insurance is there it pays in times of health emergencies as per the terms and conditions of the policy and helps erosion of liquid cash and assets. It also handles raising medical costs day by day. No need to worry about the inflation of treatment expenses etc.

Health cost is increasing at an alarming rate worldwide. Medical inflation is highest in India. New diseases are emerging and their treatment cost is increasing. Health costs can make a big hole in the individual’s pocket if the prior provision is not made in advance.

Medical emergencies come unannounced. To get the best medical facilities without a financial burden you will need health insurance. Buying a health cover is no longer an option but has become a compulsion. Only 1.1 billion of the Indian population which is less than 15% of the Indian population is covered through health insurance.

According to WHO statistics, 31% and 47% of the hospital admissions in urban and rural India are either financed by loans or through the sale of assets. Additionally, as per the statistics, 70% of Indians spend their entire income on healthcare and 3.2% of Indians fall under the poverty line owing to high medical bills.

Health Insurance has come up as a big relief. Health insurance increases access to quality healthcare, private healthcare in particular where the costs remain a barrier for many. It will ensure that you get appropriate treatment in a timely manner. Irrespective of your financial capability, with an active policy you can avail the best treatment at any network of hospitals, with the clause that terms and conditions of the policy are met.

But do we pay enough attention to it? Do we get our health insurance done when we are young and healthy? Do we have enough health cover or are we underinsured?

Salaried employees are covered under the company’s group health plan. But is sufficient? The answer is No.

Many times the company’s group health insurance sum assured is not sufficient. The medical cost of treating major life-threatening diseases is huge so there may be a shortfall in health insurance sum assured and you have to incur the extra amount required.
If you lose your job, your group health cover is ceased. You will not be a part of that. In this scenario, you and your family are out of health insurance coverage.
At the time of switching a job, you may be not covered for health until you get registered under the new employer’s group health plan or until your transition period.
Many times as per the company’s policy, only 80% of the medical bill is reimbursed. Rest bill payment you have to incur. Thus relying only on the company’s health insurance can make a hole in your savings.
Extra health insurance can serve you as a cushion in the above-mentioned situations.
One can buy a standalone health policy or family floater as a base plan added to the company’s health coverage.
The additional top-up plan can be purchased at a very reasonable rate. This helps to provide you with huge health cover at a low premium. This way you can save the premium outgo and invest the saved amount to create wealth.

So it is always advisable to have our own health insurance coverage even if you have health coverage from your company !!!

Why should I take health insurance?

Why should you NOT take it?

I will tell you a story why in a moment – but indulge my questions first

Do you change your oil or wait till the motor locks up?

Do you PM your bicycle or wait until the chain breaks?

Do you fix the brakes as they fail, or after they fail?

Do you replace and resole shoes, or do you wait until your shoes flop apart, and there is more water in them than outside?

Do you act in advance of things Or do you wait until it fails – and flop around unable to travel anywhere until you hustle the cash?

Here is what happened to me 8 years ago – this Nov 1

healthy 57 yo
in shape, could move full 55-gallon drums by hand
had just finished moving over 6 tons of household goods by hand the weekend before
had laid a stone patio by hand weeks previously
up to 11 AM Sunday morning – no health issues for 30 years

at 11:05 I was flopping on the floor like a dying fish

7 1/2 hours later, after 14 defibrillator hits, a shit load of code blues in the ER and god knows what else – they got me settled into a chemical-induced coma, in an ice bath

stayed in that bath for 3 days – while they looked EVERYWHERE for a cause of the hearing issue

NONE WAS FOUND – no blocks, no attack, no scar tissue – no failures, no reason for the collapse and near-death experience

They woke me – admitted they had NO CLUE, NO CAUSE, and stated they could not explain or prevent what they said had no reason to happen

Advice – put in a defibrillator pacemaker unit and cross the fingers and hope it helps

Went in Sunday, came out the following Sunday

Bill due – well over 130,000.00 AFTER insurance negotiations and insurance rates

5 months later – Monday 1 AM

Severe chest pain – breast bone height – pain as in doubled over, out of body grown many crying – 2 hours later no relief – so off to the ER we go

admitted – rolled into the back – multiple MRI’s to detect what it was

shots for the pain – and all was quiet and peaceful

report – gal stone

but I could not be released

Secondary issue found – UNRELATED

acute diverticulitis – (4) 1 cm holes in the junctions between large and small and large and colon

i had been poisoning myself by leaking bowel material into my stomach cavity

recommended drastic surgery, colostomy, a reversal in 6 months

A week later I WAS STILL UNCUT, AND ANOTHER TREATMENT PLAN WAS IN PLACE

6 months of pic line, and anti-biotics, home health

Bill due – well over 138,000.00 AFTER insurance negotiations and insurance rates

so in less than 12 months, I had 270,000.00 in medical costs with no medical issues or warnings

I was, and am still healthy – I still outmuscle many people way younger than I and still work most people under the table

but I do not, and will never have 270,000 cash on hand to pay those bills myself

Here are some reasons why health insurance is important for health

Medical coverage gives money-related assurance in the event that you have a genuine mishap or sickness. For instance, a split leg can cost up to $7,500. Wellbeing inclusion can help shield you from high, surprising expenses.
With Marketplace inclusion, you’ll gain admittance to preventive administrations — like shots and screening tests — at no expense to you. Getting suggested preventive administrations is a key advance to great wellbeing and prosperity.
At the point when you apply for protection utilizing the Health Insurance Marketplace, you’ll see whether you meet all requirements for investment funds that can make protection more affordable. Before you apply, select your family size, state, and salary range to check whether you may fit the bill for money-related assistance.

In the event that you have medical coverage, you can:

Go to the specialist for Affordable Health Insurance In Sterling VA and get the consideration that you have to remain sound and forestall genuine sicknesses;

Be dealt with sooner in the event that you or one of your relatives become ill or determined to have a heart condition or another genuine infection; and

Abstain from having a current condition decline.

Comprehend Your Options

Medical coverage can be befuddling and overpowering. Fortunately, there are a few assets that can assist you with comprehension and look at wellbeing plans:

Outline of Benefits and Coverage:

In the event that you have a private wellbeing plan, you ought to get a normalized, straightforward structure called the Summary of Benefits and Coverage. You can utilize it to assist you with contrasting diverse protection choices. Approach your backup plan for it on the off chance that they don’t give it.

To see an example of this short shape and get familiar with how it can support you, Consumer Reports magazine has built up this accommodating aide.

Glossary of Health Insurance Terms

The U.S. Branch of Health and Human Services has built up a glossary for normal terms identified with medical coverage, for example, deductible, co-installments, and cash-based cutoff points.

Perusing up about medical coverage can take a brief period, yet it will pay off — for your heart well being!

Paying for Health Care or Health Insurance

The Affordable Care Act (AC) permits qualifying people and families to get money-related help to help spread the expense of premiums. Known as the Health Insurance Premium Tax Credit, this endowment helps individuals who need medical coverage bear the cost of their inclusion.

Assets like Health insurance cost in 2020. Health Insurance Marketplace gives assets that can assist you with seeing if you are qualified for the top-notch charge credit and shop for and look at the changed medical coverage plans accessible to you in your state.

They may likewise have the option to let you know whether you meet all requirements for programs like Medicare or Medicaid.

Look at Health Sherpa | Fast, Easy Obamacare Enrollment or Get 2020 health coverage. Health Insurance Marketplace in the event that you might want to get familiar with medical coverage choices accessible in your state and what you have to never really prepared to enlist.

Health Insurance is a necessity today. Given the increasing medical costs, this insurance can provide the insured and insured’s family with coverage and several other benefits. It includes several aspects of medical treatment and other expenses which can eat up all your savings. This insurance also relieves us by providing tax benefits. Health Insurance is important because of the following reasons-

Protects savings– In case of a medical-related emergency or a health issue, it can provide you with not spending your savings unnecessarily.
Coverage provided– Health Insurance provides you with coverage so as to in case of an emergency, all the medical expenses ranging from hospital bills, consultation fees, diagnosis test fees, ambulance charges, operation theatre charges, room rent, post-hospitalization consultations, daycare treatments, domiciliary hospitalization, vaccinations, evacuation, etc.
Quality Treatment-Most insurance policies have a cashless treatment, where the insurance company directly settles bills with the hospital. Here, there is a network of hospitals and the insurance company settles the bill with the hospital itself.
Provides coverage for the family– Not only this depending upon your insurance plan, but the insurance can also provide health coverage for the whole family, which is quite necessary for this age of changing lifestyle where diseases are so common.

Why is health insurance important?

Here is the answer-

Medical coverage is a need today. Given the expanding clinical costs, this protection strategy and the inclusion it offers can give a few advantages to the safeguarded and the guaranteed’s family. You can peruse increasingly about how Health Insurance functions here.

The significance of Health Insurance is undisputed. It incorporates a few parts of clinical treatment and different costs which can in any case eat into reserve funds. This protection additionally gives tax cuts. In case you’re asking why this protection is significant, this guide is for you.

Secures reserve funds:

Picking a Health Insurance arrangement shields your reserve funds from getting exhausted for clinical medicines. Health-related crises are capricious, and with rising clinical costs, quality treatment can get extravagant. This can prompt a quick loss of reserve funds. With a protection strategy, contingent upon the incorporations, a lion’s share of expenses are secured. This decreases the sum spent out of pocket by the individual protected.

Inclusion gave:

A protection arrangement gives inclusion against hospitalization costs as well as spreads other clinical costs that might be brought about previously, during and after the course of treatment. These incorporate specialist’s counsel expenses, finding test expenses, rescue vehicle charges, activity theatre charges, room lease, post-hospitalization interviews, childcare medications, for example, waterfall tasks that don’t require hospitalization, domiciliary hospitalization, immunizations, clearing, and so on. With rivalry, Health Insurance arrangements are advancing to incorporate an ever-increasing number of things pertinent to the guaranteed.

Quality treatment:

Most protection arrangements have a cashless treatment, where the insurance agency legitimately settles bills with the clinic. In such sorts of arrangements, there is a system of clinics where the safeguarded can get treated. This makes quality clinical treatment accessible for the protected without the issue of paying for treatment costs.

Gives inclusion to the family:

Purchasing singular Health Insurance arrangements can get costly. Be that as it may, most insurance agencies give family floater plans where strategies and their advantages are clubbed together. The most well-known floaters are one floater for the individual, life partner, and youngsters, and a second floater for guardians. These floater strategies lessen premium expenses and give extra inclusion. This guarantees a wide range of clinical treatment in the family is secured.

Way of life changes:

There is a huge move in the present way of life. With the expansion in the number of inactive specialists, there is a higher possibility for a way of life-related sicknesses, for example, diabetes, cardiovascular issues, and so on. The higher rates of these mean more spends on such records. To shield the family from such stuns, it is ideal to purchase a Health Insurance approach.

A Health Insurance arrangement is an essential prerequisite for individuals hoping to secure their family and their reserve funds. With protection aggregators, it is conceivable to think about protection plans on the web and pick the one that gives comprehensive inclusion at a reasonable premium.

Health Insurance is a type of Insurance coverage wherein, an insured can claim payment for his medical expenses.

Health insurance is important for you and your family because if any medical emergency confronts you, that can wipe out all of the money you have saved over the years.

Although many of us believe health insurance offered by their employer is sufficient and they don’t need additional protection, you need to get an additional cover for two reasons —

One, this group cover only continues as long as you are employed. Tomorrow you may change your job, retire, or even start something on your own and thus leaving you stranded without any coverage at all.

Secondly, this cover might not be enough. With ever-increasing healthcare costs, even a 5 lakh health insurance is not enough. Therefore, you need to look at the cover provided by your employer and then get another independent health insurance policy for additional coverage.

Another important aspect of health insurance is that you need to have everyone in your family covered and that’s why a family floater plan is an ideal option if you have dependents.

A family floater plan is a single policy for the entire family and relieves you from the task of buying and maintaining a separate health insurance policy for each family member.

What’s more— Buying health insurance helps you to save taxes too. You can claim a tax deduction against the premium paid towards health insurance for yourself, your family, and your dependent parents. This can reduce your tax outgo by ₹25,000. This is over and above the 80C limit of 1.5 lakh, as this deduction is claimed under Section 80D.

Health insurance is the first thing you should buy when you think about buying insurance or investing money.

In the present world, medical expenses have skyrocketed and the need for medical care has grown. People with no medical insurance tend to overlook their symptoms in are early stages and in turn, do not receive proper medical care and timely medical care.

Today, health insurance is flexible and offers a variety of services like –

Free medical checkups periodically

The cashless transaction, many insurance companies deal with the hospital directly, you don’t have to pay at the hospital and claim again .you just go and take the treatment, the insurance company and hospital will take care of the charges.

Pre and post hospitalization cost coverage for 60 days by many companies

Cumulative bonus or no claim bonus

The rising cost of medical treatment makes a subscription to an appropriate medical insurance policy necessary. However, when it comes to medical insurance, investment decisions are fruitful only if they are well-informed and well-researched. Therefore, a suitable medical insurance policy can provide protection against inflation.

Health Insurance is a necessary part of our life. As per today’s scenario, medical cost is growing very fast, Health insurance can provide several benefits to the insured and the insured’s family. The importance of Health Insurance is undoubted. It includes several aspects of medical treatment and other expenses that can otherwise eat into savings. This insurance also provides tax benefits. If you’re wondering why this insurance is important, this guide is for you.

Savings: Opting for a Health insurance policy protects your savings from getting depleted for medical treatments. Medical emergencies are unpredictable, and with rising medical costs, quality treatment can get very expensive. This can lead to a rapid loss of savings. With an insurance policy, depending on the inclusions, a majority of costs are covered. This reduces the amount spent out of pocket by the person insured.
Coverage: An insurance policy not only provides coverage against hospitalization expenses but also covers other medical costs that may be incurred before, during, and after the course of treatment. These include doctor’s consultation fees, diagnosis test fees, ambulance charges, operation theatre charges, room rent, post-hospitalization consultations, daycare treatments such as cataract operations that do not require hospitalization, domiciliary hospitalization, vaccinations, evacuation, etc. With competition, Health Insurance policies are evolving to include more and more items relevant to the insured.
Treatment: Most insurance policies have a cashless treatment, where the insurance company directly settles bills with the hospital. In such types of policies, there is a network of hospitals where the insured can get treated. This makes quality medical treatment available for the insured without the hassle of paying for treatment expenses.
Coverage for the family: Buying individual Health Insurance policies can get expensive. But most insurance companies provide family floater plans where policies and their benefits are clubbed together. The most common floaters are one floater for the individual, spouse, and children, and a second floater for parents. These floater policies reduce premium costs and provide additional coverage. This ensures all types of medical treatment in the family are covered.
Change Lifestyle: There is a massive shift in the current lifestyle. With the increase in the number of sedentary workers, there is a higher chance of lifestyle-related diseases such as diabetes, cardiac problems, etc. The higher incidences of these mean more spends on such accounts. To protect the family from such shocks, it is best to buy a Health Insurance policy.

A Health Insurance policy is a basic requirement for people looking to protect their family and their savings. With insurance aggregators, it is possible to compare insurance plans online and choose the one that provides exhaustive coverage at an affordable premium.

Health Insurance is a basic need in the present times

With the soaring healthcare expenses and the ever-rising possibility of diseases, a health insurance plan has become a basic need for all of us.

Don’t believe me, count your benefits:

Health insurance ensures you have a financial backup for unexpected medical emergencies- pre-hospitalization, hospitalization, and post-hospitalization.
It offers preventive health check-ups, to keep your health in check and adding an extra layer to your health care protection
Provide coverage even for the critical illnesses
Tax benefits

Life is full of healthcare risks and uncertainties. You cannot plan and get sick, but at least you can buy a perfect health insurance plan to take care of the medical needs of your family. i.e. when you need it the most, a health plan can be your easy way out.

i.e. when you need it the most, it is the easy way out
i.e. when you need it the most, it is the easy way out

Reasons for purchasing a health insurance plan:

Today’s lifestyle: Today’s lifestyle has made us more prone to get sick with a wide range of health diseases. Busy work schedules, lousy eating practices, food contamination, and increasing levels of pollution have enhanced the possibility of developing several health issues such as diabetes, obesity, heart disease, blood pressure, liver diseases, etc.

Today’s healthcare costs: There is no fixed parameter of healthcare services costs. During an unexpected medical emergency, it might be possible to end up spending your whole life savings.

Coverage: A perfectly designed health insurance plan covered various expenses such as doctor consultation fees, medical test costs, surgery charges, hospitalization costs, medicinal costs, and even pre and post-hospitalization charges up to a fixed limit.

Quality Treatment: Most of the medical insurance plan provides a cashless treatment facility even in super-specialty hospitals. You can get a world-class medical facility during the uncalled medical emergency needs, absent any financial burden.

At present, we also see the increasing graph of corona fear. There is no full-proof diagnosing process until now across the sphere. People sometimes need to pay a prodigious amount to get the customized treatment of COVID19. Now people understand the importance of having a perfect health insurance plan.

In short, your small investment in a health insurance plan can provide you with big gains and peace of mind.

5 Interesting facts about the Indian healthcare system

India boasts about having the world’s second-largest population, rising from 760 million in 1985 to an estimated 1.3 billion in 2015. A competitive population shift was observed in the last 25 years where our population grew by 450 million. Fortunately, in this time period, people living below the means also declined in simple words poverty ratio was almost halved in the last 25 years. But unfortunately, this era of 25 years can also be indicated as the era of increasing communicable diseases, some “lifestyle” diseases, and even some deadly diseases also. Due to these uninvited diseases has raised the figure of a number of people dying far more than 42 percent in 2001-03.

We can say that our current population is suffering a disease burden in the current era of so-called growing prosperity. But yes it has given an exponential shift to the health industry which is now grown to $81.3 billion (Rs 54,086 lakh crore) in 2013 and is now projected to grow to 17 percent by 2020, up from 11 percent in 1990. Who oomph!!! We always like big numbers but it should be positive. Due to so much spending and advertisement by government and non-government organizations, it is a sad fact that still, 80% of Indians don’t have health insurance yet.

So today we will be showing a new face of the Indian healthcare system which are interesting though –

1. Village v/s Cities – This is a divide that we are facing for a long time; there is still a very wide gap between villages and cities in terms of awareness, development, and acceptance. Approximately 4% of our GDP is being spent on healthcare goods and services (though the way is too less than US 18%) still the results are ineffective. This is because of the difference in services in hospitals in villages and cities. Even National Urban Health Mission pays individuals for healthcare premiums, in partnership with various local private partners, but still ineffective to date. Our system needs to encourage more individuals and make them aware of the healthcare policies and benefits one can take from it.

2. Healthy Infrastructures – We in 2019 are still struggling with our health infrastructures which unfortunately in rural areas is not even effective to provide basic treatments for diseases like HIV, malaria, tuberculosis, and diarrhea. This divide in rural and urban structures forces the individuals to go to private doctors or t0 some big branded hospital and then burn the pocket. Though the government claims that a universal facility is being provided to every individual either in a rural or urban area but we all know the truth.

3. Pharmaceuticals – We are the third-largest exporter of pharmaceutical products (Source – Indian Brand Equity Foundation (IBEF)), we can observe and see a war between the allopathic, generic, homeopathic, and different types of medicines available in the market. Unfortunately again the prescription plays the role and any individual has to buy according to the drugs prescribed by the doctor. Our per capita income is on the rise with every passing quarter but the lack of effective measures from the government is still making us reluctant and ignorant about our healthcare needs. Pharmaceutical companies are playing on the soft psychology of the customers and that too by creating fear in the minds. The development of primary care facilities can only shape the future of pharmaceutical industries in India. The government has already taken some liberal measures by allowing foreign direct investment in this area which has been a key driving force behind the growth of the Indian pharma industry and we can expect some revolution in the way we take our medicines.

4. Medical Devices – Only a cherry in the pie of the healthcare industry of India it is the fastest-growing segment under it. The growth and development of this segment are being blocked by many driving factors of government policies and regulations. Medical devices play an important role by keeping an individual aware of getting a primary medical treatment like BP, Diabetes, etc. Some positive policies change from the government have made this segment growing and developing.

5. Health Insurance – The spending of Indian individuals is generally aftercare, the major fact behind it is we don’t know about health insurance. Health insurance has become one of the fastest-growing sectors in India and is penetrating in the market very rapidly. The major role is played by the individuals how much do we interest in getting benefit from these type of policies. As mentioned above unfortunately 76% of Indians are still not covered by health insurance which is an alarming figure. In this era of growing communicable diseases which are deadly too, it’s our sole responsibility to get information about health policies to protect us and our families from uninvited events.

The healthcare segment in India is growing at its own pace but we need to understand how much our health is important for us and our families. So summing up I must just say we are responsible for our health and well being and we should take that initiative to change it.

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