BANGALORE: Health insurance provides risk coverage against expenditure caused by any unforeseen medical emergencies. In times of high medical inflation rates, failing to hold adequate amount of health insurance cover can prove to be a major personal finance disaster. This could lead to either poor health care because of non-affordability or spiral an individual into financial distress due to high medical bills.

There are two common mistakes when it comes to buying life insurance and health insurance one is people don't act at the right time, and secondly when they realize that they have made a mistake they try to over-compensate by buying too much insurance.

There is a popular saying about health insurance: "Buy health insurance when you don't want it, because you may not get it when you want it."

Currently, majority of the salaried professionals are provided health insurance cover by their employers. Majority of the employees are increasingly dependent on such health insurance cover to counter their health contingencies. However, they often fail to assess their health insurance requirements and don't realize the benefits. It is advised that professionals opt for personal health insurance cover as well.

Health insurance policy can help meet unforeseen medical expenses, a critical illness cover may provide the additional buffer for one's finances in case of a major illnesses. Health insurance policies seek to cover the actual expenses incurred if you are hospitalized due to various ailments or an accident. On the other hand, critical illness policies provide a lump sum once the insured individual is diagnosed with a pre-specified critical illness that is covered by the policy.