What is a health insurance policy?

 Intro:

A health insurance policy helps you pay the cost of your medical bills, should you get sick or injured and need expensive medical treatments and care. If you can’t afford to pay all these costs yourself, then your insurance company will help you out with paying them instead of having to try and deal with debt collectors or other institutions down the line. Depending on what kind of policy you get, they’ll also cover things like prescription medications and dental work, too. So that’s why it’s so important to have one!

 

Life Insurance Policy

A life insurance policy is an agreement between you and an insurer, outlining your payments and benefits. As a basic overview, these agreements include three main parties: an insured person or group (e.g., you or your employees), a life insurance company, and one or more beneficiaries. The beneficiaries are people who will receive money from your life insurance company if you die during the term of your contract with them. They can be either specific individuals (e.g., immediate family members) or charities. A life insurance policy typically lasts for several years—even up to 30 years in some cases—and may accumulate cash value as time goes on, allowing you to borrow from it tax-free until death occurs

 

Health Insurance Policy

While every type of personal insurance and benefits plan differs, most include three types of coverage: medical, dental, and vision. With a health insurance policy, you’ll have access to various doctors and hospitals as well as preventative care, routine checkups, and screenings for things like cancer or heart disease. You may also be covered for prescription drugs, ambulance transport, and mental-health treatment. Having a health insurance policy gives you peace of mind when it comes to your health care costs.

 

Critical Illness Insurance Policy

This type of insurance covers any illness or injury that prevents you from being able to work and earn an income. It also provides coverage for death if you die as a result of one of these illnesses or injuries. Because you’re unable to work due to your illness, your business income stops coming in – meaning it can be hard to pay off your debts and meet basic living expenses. If you have critical illness cover, your business income will continue until you can return to work. This means you won’t need to dip into savings or stop paying off debts to keep up with mortgage repayments and other costs.

 

Healthcare or Mediclaim Policy

The healthcare or mediclaim policy covers hospitalization expenses and provides cashless hospitalization. It has to be purchased before you are hospitalized. In case of hospitalization, you need to give your hospital cash deposit, which is refundable if there are no claims during that period. Once insured with a company, one can avail of its hospitals or diagnostic centers anywhere in India without paying any extra money as consultation fees. If one wants to go outside India for medical treatment, then certain exclusions may apply.

 No Claim Bonus

You can probably figure out how much your auto insurance will cost, but what about life or health coverage? Figuring that out takes some serious number crunching. The first step is to find out whether you’re eligible for certain discounts or perks. For example, if you’re in good health and don’t smoke, your rates are likely to be lower than they would be otherwise. And if you do smoke and have had an at-fault accident in recent years, your premiums could go up sharply as well.

What is a health insurance policy?