Health insurance is a contract between an individual and an insurance company that provides financial protection for medical expenses. It can help pay for hospital stays, doctor visits, medications, and other healthcare costs. For example, health insurance may help to pay for doctors’ services, medications, hospital care, and special equipment when someone is sick or injured, often in exchange for a monthly premium. It may help cover a stay at a rehabilitation hospital or even a portion of home health care. Heath insurance can also keep a consumer’s costs down when they are not sick. For example, it can help pay for routine check-ups. Most health insurance also covers many preventive services at no cost, such as immunizations and cancer screening and counseling.
Why is it important?
Never before has it been so important to take care of your health. The Coronavirus outbreak has made that abundantly clear for all of us. However, even before the global pandemic, there were several threats to our health present in the environment, because of which we need to understand what is health insurance. You might lead a healthy lifestyle, but unfortunately, a medical emergency can occur without warning. In times of a health crisis, the financial burden can become immensely stressful. With the skyrocketing healthcare costs, it can be challenging to pay for them out of your savings. Therefore, it is essential to plan for medical emergencies. Health insurance can help protect you financially if you become sick or injured, Health insurance can help keep your healthcare costs down, even when you’re not sick. And it also helps you take advantage of tax deductions. it ensures that your family is financially untroubled.
How does it work?
- The policyholder pays a monthly premium to the insurance company.
- When the policyholder becomes sick or injured, the insurance company reimburses the policyholder or pays the healthcare provider directly.
- The policyholder can choose a plan that covers the types of healthcare services they need.
What does it cover?
1) Hospital stays
Health insurance can help pay for hospital rooms, ambulance charges, and other hospital-related costs.
2) Doctor visits
Health insurance can help pay for doctor’s consultations and other medical services.
3) Medications
Health insurance can help pay for the cost of medications.
4) Preventive care
Health insurance can help pay for routine check-ups, immunizations, and cancer screenings.