What is Health Insurance and Why should I buy Health Insurance?

Health Insurance protects you against rising healthcare costs and financial uncertainty associated with unforeseen hospitalisation due to accidents or illnesses. You can secure yourself and your family against unexpected financial emergencies by taking a health insurance policy for yourself and your family.

Major illnesses or accidents that require hospitalization can significantly deplete an individual’s finances. Costs for treatment of an illness requiring prolonged hospital care can sometimes be fairly expensive and due care should be taken while choosing the adequate amount of cover that you should insure for. Health Insurance is also important to those who do not have a guaranteed health cover as provided to government or armed forces employees. Group health insurance cover that may be provided by an Employer is subject to continued employment and the terms of the group cover – which may or may not be renewed in the future, or may not be provided post retirement.

With increasing age, need for healthcare typically increases – and many employer provided insurance covers may not provide the cover at the time.

It is important that provision for health insurance is done at an early age. Different health insurance policies have different rules for underwriting, covering pre-existing diseases, exclusions, and eligibility for certain types of charges covered or room type / room cost per day.

It is important that in taking a health insurance cover, proper research and comparison is done on the various products in order to decide which ones meet your requirements best. This is not only a function of price. Some plans will also offer hospital cash benefits to cover ‘other’ expenses when hospitalized or out-patient or dental expenses.

One can consider either an Individual Plan or a Family Floater which provides for cover for the family. A Family Floater can be cheaper than a combination of Individual plans, but limits the payments covered to the overall sum insured in a given year.

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