Why You Can't Afford to Skip Health Insurance Medical treatments are becoming increasingly expensive in India. A single hospitalization can wipe out years of savings. Health insurance is a contract where an insurer agrees to pay for your medical expenses in exchange for a yearly premium. It's a crucial tool to protect your finances.

Types of Health Insurance Plans * **Individual Health Insurance:** Covers a single individual. * **Family Floater Plan:** Covers the entire family (self, spouse, and children) under a single sum insured. This is usually more cost-effective than individual plans for each member. * **Senior Citizen Health Insurance:** Specially designed for individuals above 60 years of age. * **Critical Illness Plan:** Provides a lump-sum payment if you are diagnosed with a major illness like cancer, heart attack, or kidney failure. This is usually taken as a supplement to a regular health plan.

Key Things to Look for When Buying a Plan * **Sum Insured:** This is the maximum amount the insurer will pay in a year. Choose an adequate amount (at least ₹5-10 lakh) considering rising medical inflation. * **Network Hospitals:** Check the list of hospitals where you can get cashless treatment. * **Waiting Periods:** Plans have waiting periods (e.g., 30 days for initial coverage, 2-4 years for pre-existing diseases). * **Co-payment and Deductibles:** Understand if you need to pay a portion of the bill from your own pocket. * **Exclusions:** Know what is not covered by the policy.

Key Takeaway Don't rely solely on your employer's group insurance, as it may not be sufficient and ceases when you change jobs. Buy a personal health insurance policy early in life when premiums are low.