What is Health Insurance and how do I claim it?

What is Health Insurance?

Health insurance, or Health Coverage as it is sometimes referred to, is a contractual arrangement between an individual or family and an insurance company that provides the insured with coverage against the risk of certain medical expenses in exchange for the payment of regular premiums, usually on a monthly basis. What are the main types of health insurance?

Choosing Health Insurance

When comparing health insurance plans, make sure you understand which deductibles, copays and other fees are associated with each one. For example, if you choose a plan that has a $50 annual deductible but your annual medical expenses are $2,000 (with medication costing $400), then you’ll end up paying for most of your costs out-of-pocket.

That’s not ideal. Make sure to understand exactly what kind of coverage you’re purchasing before choosing your plan.

Some insurers may offer incentives to encourage people to sign up for health insurance – for example, many hospitals in Australia require patients to have private health insurance before they can be treated in an emergency department.

Cost of health insurance in India

By 2020, India will have a population of more than 1.3 billion. While many would argue that India is one of the most important countries in Asia, healthcare infrastructure remains in a shambles; as per an estimate made by WHO in 2015, around 72% of all deaths in India were due to non-communicable diseases.

It’s imperative that you plan your health insurance needs accordingly. The cost factor can deter or affect your decision to get insured or not. This information graphic summarizes some key facts about health insurance policies

How Health Insurance Works

Most Americans get insurance through an employer or through a government program. When you sign up for health insurance, you agree to pay your insurance company a certain amount of money every month in exchange for coverage.

At any point during your contract period (usually one year), you can change your policy if you want—you might want to do that if your existing plan becomes more expensive or if there’s a new option with better benefits. Otherwise, however, your monthly payments are all-inclusive: You’ll receive coverage without ever having to pay more out of pocket.

Importance of Health Insurance

Importance of Health Insurance

An insurance policy that pays for medical care, hospitalization, or a specified disease. A health plan offered by an employer (or through an association) to pay or reimburse you for medical care. The coverage protects against high costs of illness or injury.

For example, it might pay 80% of all covered expenses after a $1,000 deductible (the amount you must pay before your insurance will start paying). How do I get health insurance? If you don’t have coverage through work, your state’s health insurance marketplace can help you compare plans that are available in your area.

Benefits of Health Insurance

Many employers offer insurance coverage to their employees as a form of compensation. Theoretically, then, your health insurance costs are being paid by your employer.

The benefit you receive from receiving healthcare coverage at work (or through an independent plan) is that you’re spared from having to pay thousands of dollars per year in medical bills out-of-pocket.

It can be difficult to pay for healthcare bills when they’re not covered under a general hospitalization or care plan (and thus there aren’t significant deductibles).

Without insurance, you could wind up with tens of thousands of dollars in medical debt that would take years to pay off.

Investment in heath insurance

Private medical insurance costs in India are high and only a selected few are able to afford them. The common belief that one does not need private health insurance, because he/she may be eligible for government sponsored schemes like CGHS (Central Government Health Scheme) or ESI (Employees State Insurance), etc., has also contributed to low uptake of private health insurance in India.

However, even today a majority of Indians cannot afford to pay out-of-pocket for their healthcare costs as most insured still have to make co-payments of 30% or more; that is they have to bear 30% of hospitalization expenses out of their own pocket.

For Claiming Your Health Insurance

  1. Gather your insurance card, government-issued ID, etc. from you doctor’s office (if you don’t have one, then see below).
  2. 2. Call your health insurance company or go online to look at their page with information on what to do when relocating (they will likely have a number for you to call)
  3. 3. Be sure that when making any changes in address or phone number, that they are also updated with our school’s registrar office (if applicable)
  4. 4. Be sure that both your medical records and dental records are up-to-date
  5. 5. If needed, update your dependent’s name(s) with your new insurance provider so they may continue to be covered.


Having health insurance can often be a confusing process. There are multiple types of plans, each with their own cost, benefits, and restrictions. Fortunately, once you’ve found a plan that works for you, filing for your plan can be quick and simple.

Simply check that your doctor(s) accepts your plan (this is usually listed on your coverage documents), schedule an appointment with them by calling their office or filling out a form online; and then head over to submit your paperwork after you’ve received confirmation from your insurer that you have met all necessary requirements. Taking these steps will ensure that you get everything set up as quickly as possible!

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