Healthcare involves the services developed to safeguard health, including medical facilities, professional and financial services such as medical insurance. We are exposed to various hazards that can damage not just our physical health, but also our finances. Thus, Mediclaim or Health Insurance becomes significant as it provides monetary protection in case of such unforeseen situations.

It is important to know the basics of Mediclaim, also commonly called health or medical insurance. What exactly does it mean and why is it so important? Read on to know all this and more

What is Mediclaim Health Insurance?

• A health insurance or mediclaim insurance policy covers you and your family members against sudden medical contingency. Your health or mediclaim insurance policy is an agreement between you and the insurance company. The policy lists a package of medical benefits such as medical tests, drugs and treatment services. The insurance company charges you a Premium (usually on a yearly basis) to cover you against the risks.
• The insurance company agrees to cover the cost of certain benefits listed in your policy. Sometimes, it covers not only the expenses incurred during hospitalization but also the pre and post-hospitalization expenses.

• The health care costs have witnessed phenomenal rise in the current times. Thus, it is important to insure your family's and your health to avoid financial exigencies.
• You get a tax benefit and can save on your income tax under section 80D of the Income Tax Policy (in India).
• There are different types of Medical Insurance policies available and you can select one as per your needs. The different categories can be broadly classified into.
• Individual Medical Insurance - Individual insurance caters to the specific needs of an individual. Premium for an individual insurance is higher than group insurance.
• Group Medical Insurance - Group medical insurance offers insurance cover to a group with a common trait – it may be employees of a company, members of a club or an association or members of a co-operative society etc. Many employers now provide medical insurance as a perquisite to their employees.