Insurance is an agreement between two parties in which one party bears risk on behalf of another party in return for some premium. There are two parties basically insured and an insurer. Insured is the one who transfers the risk on another party by paying a premium and insurer can be any company or firm that bears risk on behalf of the insured. Insurance is of many types such as covering the risk of life, health, vehicles, property, marine, fire and many others.
Here, specifically we are talking about health insurance, which means insurance covering the risk of medical and surgical expenses. Health insurance reimburses the money spent on illness or injury of the insured or the caregiver of the insured. Health insurance basically covers risk of a person’s medical expenses, disability, sudden death, loss from accident or dismemberment. Health insurance is of many types such as individual plans, family plans, senior citizen plans, maternity health plans, surgery and critical illness plans or personal accident plans. Here are some of the benefits of health insurance offered by companies like www.medicarerx.com :
Health insurance helps the insured in getting cashless treatment as the insurance company has their collaboration with many hospitals. They work with these hospitals and the insured’s claim is directly settled. Another way around can be that the insured pays hospital expenses and later gets a claim from the insurance policy company if that hospital is under the medical cover.
The premium paid by the insured to the insurance provider is not taxable. It is deductible under section 80D of Income tax. Certain restricted amounts can be deducted. No more amounts can be deducted than the restricted amount. Also, the amounts are set according to age criteria.
Some medical covers also include transportation charges of an ambulance. If the insured needs an ambulance and it has a different charger, it is possible that they are paid by the insurer. Whether transportation charges would be covered depends upon the type of insurance cover you have.
If there is a need that the insured gets admitted into the hospital. The room rent is paid by the insurer if the cover includes it. In most cases, the medical cover includes room rent but the amount of claim on room rent depends upon the premium paid by the insured to the insurer.
The insurance policy also provides for free medical check-up in any hospital as they provide in. the medical check-up provided can be regular. Sometimes insurer provides check-up before providing for insurance depending upon the age of insured. Alternatively, it is possible that checkups are provided after some time of signing a policy.
Additional protection other than employee cover
The employee cover of an employee is with him only if he has the job. Once the job is left or changed the employee cover is also gone. So if one has health cover, it will remain with the individual even if the job is left or changed. Health cover remains with the person despite change in employment.
Cover against critical illness
These days health policies also provide for critical illness such as kidney failure, stroke, loss of limbs, bone marrow transplant. If you have such kind of cover and such a critical disease that is covered under the policy is diagnosed, the policy will provide lumpsum amount. This amount is used to get the illness treated.
Health insurance is there to cover the risk of medical expenses and in order to know more about health covers; one can read more on websites available.