What is Health Insurance?
Health insurance is a type of general insurance that provides financial coverage for medical expenses incurred due to illness, injury, or accidents. It ensures that the insured person receives timely medical care without worrying about the high cost of treatments. Health insurance typically covers hospitalization, surgeries, doctor consultations, diagnostic tests, and sometimes pre- and post-hospitalization expenses.
Purpose of Health Insurance?
The main purpose of health insurance is to safeguard individuals and families from the financial burden of healthcare expenses. It ensures access to quality medical treatment while reducing out-of-pocket expenses. For example, in the event of a major illness or accident, health insurance can cover significant costs, ensuring the individual can focus on recovery instead of finances.
Why Health Insurance is Important?
Health insurance is crucial for the following reasons:
Key Benefits
FAQs
Q1: What does health insurance typically cover?
It covers hospitalization expenses, surgeries, diagnostic tests, ambulance charges, and sometimes pre- and post-hospitalization costs.
Q2: Can I claim for pre-existing diseases?
Yes, but usually after a waiting period specified in the policy (e.g., 2-4 years).
Q3: What is a cashless facility?
It allows the insured to receive treatment without paying upfront at network hospitals; the insurer directly settles the bill.
Q4: Are there any tax benefits for health insurance?
Yes, premiums paid for health insurance are eligible for tax deductions under Section 80D of the Income Tax Act in India.
Q5: Is it necessary to buy health insurance if I am young and healthy?
Yes, buying health insurance early ensures lower premiums, coverage for future health issues, and financial preparedness for unexpected emergencies.