There is an array of flexible and comprehensive health insurance policies aimed at protecting your health at all times. You can insure yourself and every member of your family, depending on what policy suits your needs the most. Health insurance is affordable. You can purchase policies without breaking the bank. Here is all you should know about what health insurance is, the types available, and how it can benefit you and your loved ones.
What Is Health Insurance?
Health insurance is insurance coverage that covers all surgical and medical expenses. Many users of health insurance use the term provider to describe a pharmacy, healthcare practitioner, laboratory, doctor, hospital, or clinic where the insured individual is treated. Since there are many different types of health insurance coverage, the cost of all surgical and medical expenses can be taken care of by either the insurer or the insured. In case it’s the insurer that makes payments, they pay directly to the provider, but if the insured takes care of the cost, they receive reimbursement. Some countries offer universal healthcare coverage, while others don’t. In those countries, healthcare coverage comes with employer benefit packages. The truth is, the type of health insurance you have determines the level of treatment you receive in emergency departments. Health insurance works pretty simply:
- To apply for an insurance policy, just fill in your health details.
- Compare the best quotes to find the policy that suits your needs and customize your policy to get more benefits.
- Make a payment and get your policy.
Long story short, health insurance is an agreement that binds your insurance company to compensate for any medical costs that you might experience. If you get injured or hospitalized, your policy has you covered.
2 Main Types of Health Insurance
There are many types of health insurance policies to choose from, but the two main types are:
- Private health insurance
- Public health insurance
Other Health Insurance types
Managed-care plans. The insured gets lower-cost medical care from a host of healthcare providers. If the insured individual chooses to seek treatment outside of a network of healthcare providers, there will be additional costs and penalties. The higher the cost of the policy, the bigger the network of healthcare providers.
Indemnity plans. These plans are more commonly known as fee-for-service plans, and they provide equal coverage among all healthcare providers included in the policy. This allows the insured to choose a place of treatment by their preference. The insured covers 20% of costs while the insurer takes care of the rest.
HMOs or health maintenance organizations. The insured gets insurance coverage directly from healthcare organizations (HMO). This type of coverage includes a dedicated physician that provides primary care if and when it’s needed.
PPOs or preferred provider organizations. As the name suggests, an insured can choose their preferred doctor. This coverage excludes the need to visit a primary care physician as the insured can self-refer to specialists. They also pay less if they receive treatment outside of the network providers.
POS or point of service plans. This coverage is a mix of PPO and HMO where the insured can make a selection between using non-network providers, receiving treatment with the preferred provider, or visiting a primary care physician for treatment coordination.
Other Types of Coverage
While a range of insurance services depends on the company, there are other types of coverage that you can count on.
1. Individual health insurance plan
A policyholder and an insurer make an agreement where the insurance company covers the medical expenses. It’s important to point out that this coverage goes only up to the policy’s limit. To purchase such a plan, the insured individual needs to make regular premium payments to the insurance company. This plan includes:
- Coverage of all expenses related to hospitalization;
- The addition of treatments for the family;
- Coverage for medical emergencies that don’t affect your savings;
- Coverage for daycare procedures;
- Tax benefits.
2. Senior citizen health insurance plan
People get sick as they get older. It’s simply inevitable! But, they can do something about it to secure their wellbeing. Senior citizens have less income or no income at all, and this only enhances their struggles. Those who are 60 and above can make it easier on themselves by purchasing a senior citizen’s health insurance plan. This plan provides coverage for accidents, critical illness, diseases, and more. It provides:
- Coverage for frequent medical expenses;
- A coverage for medication and treatment;
- Coverage for both the advanced and regular treatment;
- The way for senior citizens to afford everything they need with lesser income;
- Additional financial security;
- Enhanced savings;
- A chance to increase life expectancy.
3. Critical illness insurance plan
When critical disease strikes, the treatment is never easy, and most of the time, it’s prolonged and highly expensive. People need a way to deal with such situations, and that’s where the critical illness insurance plan comes into play. In case you or your family members fall ill to diseases like muscular dystrophy, cancer, heart attack, or kidney failure, a good insurance plan helps to reduce the costs and provide the right treatment. This insurance plan offers great benefits to the insured:
- The chance to maintain the lifestyle by receiving proper coverage;
- Coverage for the recuperation aid;
- Regular health check-ups;
- Coverage for the necessary treatment;
- Tax saving benefits.
4. Maternity health insurance plan
Every woman gets to a turning point in her life with the coming of a child. Pregnancy is a blessing, and therefore, it should be treated as such. Since this is a condition that requires the utmost care, having a good insurance plan to rely on seems like the smartest way to go. Delivery procedures are expensive, but these expenses can be easily remedied with proper health insurance coverage. A maternity insurance plan provides:
- Hospitals with the best equipment for the delivery;
- Coverage for the expenses of regular pregnancy tests, health check-ups, and consultations;
- The coverage for the expenses of the delivery;
- Tax benefits.
5. Group health insurance plan
The group plan is what employers purchase for their staff and employees, and it works in a very simple way: 50% of the amount is taken care of by the employees and the remaining 50% by the employer. Most organizations provide such plans to retain employees and enhance morale. This plan helps businesses:
- Improve the retention rate;
- Boost morale;
- Increase the economic rate;
- Save on tax benefits.
6. Personal accident insurance plan
When an unfortunate and unforeseen event happens, it’s better to be prepared. No one can predict an accident, but you can insure yourself and take all the preventive measures possible. That’s what a personal plan provides – insurance coverage that covers all financial hardships that may arise as direct consequences of an accident. This plan covers:
- The cost of accident-related treatments as well as all the following expenses;
- The treatment of severe injuries;
- Legal and financial expenses;
- All expenses related to an accident taking place worldwide;
- Complete health care for the entire family.
The most popular health insurance companies
The best companies for purchasing health insurance are:
- Max Bupa
- Star Health
- HDFC ERGO
5 Health Insurance Tips
The costs of healthcare are always increasing, so here at Market Pro Secure, we decided to give you a few tips that might help you cut on the expenses and save a lot.
- Look for more options – there are so many great companies that offer amazing plans, so the more you know, the better. Always compare multiple plans before you purchase.
- Go with a higher deductible – while going with a higher deductible might sound risky to you, these plans include lower premiums. This is a good opportunity to save lots of money.
- Open a health savings account – opening a savings account connected to your insurance plan is an excellent way to have yourself insured while saving at the same time. These accounts are tax-deductible, which means that you can save money, free of taxes, but better yet, you can also withdraw the funds.
- Seek care at the right places – the ER is expensive to run to every time, so you should consider more affordable alternatives that offer the same level of medical care and treatment. Telemedicine and urgent care clinics are also great solutions. Talk to your physician to consider the alternatives before you act.
- Branded medication is more expensive – going with a brand with the highest prices isn’t always the best solution, especially when generic medication is less expensive. Generic medication is efficient, safe, and has the same effect as premium brand medication while allowing you to save up to 50%. Of course, before you purchase generic, talk to your physician.
What should You ask a health insurance agent?
Here are a couple of good ideas:
- What this type of plan includes?
- Does my plan include my provider?
- What’s a deductible?
- What’s the amount of my monthly premiums?
- Are there any restrictions?
- What happens if I miss my monthly premium?
- How my plan works while I’m traveling?
- What countries does my plan cover?
Having a good health plan helps make your life better. Most importantly, it can ensure wellbeing for you and your family while allowing you to save money in the long term. Purchasing a health plan for you and your loved ones is a lifelong investment that can help you get through the most difficult times with the most positive outcomes. Don’t let any unfortunate and unforeseen events change the course of your life. Play safe and get a health plan.