What is Health Insurance

Health insurance, like life insurance, is a form of insurance in which people collectively pool their risk, in this case the risk of incurring huge medical expenses, due injury or sickness, which may wash out our savings.

Health insurance is agreement between insurer (who provides insurance), approved by Insurance Regulatory and Development Authority and insured is the person who buys insurance policy.Health insurance provides health cover or medical expenses to insured in case of hospitalization for more than 24 hours. The hospitalization coverage typically includes surgical operations, nursing care, doctor’s fees, pathology, diagnostic tests hospital accommodation, pre and post hospitalization expenses. Health insurance also pays for regular checkups and consulting doctors. The insured in return pays specified amount called premium every year or two.There are two type of Health insurance. a) Individual Health Insurance, which provides health insurance for single person. b) Floater policy, which provides health insurance cover to all the members of the family.

Need for Health Insurance Planning:

As you can see from the pyramid of financial plan, the foundation of your financial plan rests on the Risks, which is taken care by Life Insurance, Health Insurance and Personal Accident Insurance. But usually health insurance is not given utmost importance as it should be given.

God forbid if any unforeseen event strikes like critical illness or major accident, the earning capacity of the individual gets drastically affected and in turn spending increases due to hospitalization and treatment. In absence of a health insurance, one may need to dip into the existing savings, thus hampering the other goals, sometimes even borrow and compromise the standard of living.

Let me share some statistics with you, 

  • 40% of the people who are hospitalized either borrow money or sell assets to cover medical expenses.
  • 16% of Indians are pushed into poverty by rising health care costs.
  • shift from contagious diseases to life stage diseases.
  • every 2.5 minutes a person dies of kidney disease in India

We give utmost importance to your health insurance and help you choose the right health insurance products to suit your needs.

The steps we follow :
1. Analyzing current health status of you and your family.
2. Considering the current age of you and your family members.
3. Placing them in different risk bracket according to their age.
4. Planning for appropriate health insurance plan for each.
5. Choosing the right product available from different companies offering health insurance products.
6. Explaining details of each health insurance plans chosen.
7. Implementation of the plan.


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