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Premature death is a financial threat because this peril cuts off income needed to support a family, pay debts, or educate children. Disability resulting from illness or accident may be an even greater peril to family because it not only takes off income but also create large medical expenses. Insurance can transfer the burden of the costs of illness or accident so that people do not have to face financial loss because of poor health. The loss from ill health stem from two separate sources : loss of income and medical expenses.

Kinds of health insurance coverage :

(a) Basic Medical Expenses : First money coverage for expenses of hospitalization and doctors' service.

(b) Major Medical Expense: Coverage for the cost of catastrophic illness.

(c) Disability income : Replaces incomes loss while the insured is unable to work.

(d) Medical supplement : Filler gaps in medicare programme of social security.

Tips: -

(Imp)