Benefits of Health Insurance
The main purpose of a health insurance coverage is to provide financial support in the event of an illness, accident, or hospital stay-related medical emergency. Because of its long-term advantages, obtaining health insurance should be a top priority in your yearly financial strategy. Let’s examine the advantages of having health insurance.
1. Cost of Hospitalization
The fact that hospitalization costs are covered by health insurance policies, whether due to disease or unintentional harm, is one of its most important advantages.
Hospitalization for illness
Health insurance plans pay for expenses incurred when receiving hospital treatment for any kind of illness. The following types of linked treatment-related charges are included in the covered expenses:
- Accommodation fees
- Charges for an intensive care unit (ICU)
- fees for doctors
- Costs of diagnostic testing
- Surgical costs
Unintentional hospital admission
Policies for health insurance pay for any expenses related to treating injuries sustained in an accident. These consist of any additional expenses for treating an unintentional injury that are covered by the health insurance plan, like:
- Accommodation fee
- fees for physicians and surgeons
- ICU fees
- Costs of diagnostic testing
Limiting the cost of a room
Because costs like diagnostic and physician fees are strongly correlated with the type of room a patient choose while receiving hospital care, the ability to select a cap on room rent under your health insurance policy is a crucial factor. Options like a fixed payment that is connected to the entire amount insured of an individual or a single private room, as well as no upper limit on room rent while receiving hospital treatment, are included in this feature.
Daycare costs
With improvements in treatment techniques, many surgeries no longer need an overnight stay in a hospital. Health insurance plans are made to assist policyholders in situations like these by paying for similar treatments in lieu of the usual hospital stay.
Alternative medical care
These days, not everyone is a fan of allopathic medicine. Ayurveda, siddha, unani, and homeopathy are a few alternative medicinal practices that can be used to effectively treat some disorders. Such alternative treatments are also covered by several health insurance plans.
2. Costs of Hospitalization Before and After
When an individual takes treatment at a hospital, there are a series of visits by doctors along with the diagnostic tests that are required to be done for you before you get treated as well as after. These expenses are considered by certain health covers.
For instance, health insurance plans pay for the expenses incurred in the hospital for treatment but they also factor paying for the expenses incurred prior to hospitalization for a certain number of days ranging from 15 to 60 days prior to treatment. They also cover charges of follow-up visits, medicines and diagnostic tests once you get discharged from the hospital. Some health insurance plans pay for such expenses ranging from 30 to 90 days from the discharge of an individual from the hospital.
Cost of transportation
This benefit pays for ambulance expenses and is typically provided up to a sublimit of around INR 5,000 for each hospitalization you have over the course of your insurance.
3. Health Check Ups
The main purpose of health insurance policies is to alleviate financial strain in the event of an emergency medical situation. Insurers, however, also like to have healthy individuals in their portfolio. Preventive health check-ups are often provided annually by most health insurance plans to make sure a person is informed of their health. This enables a person to take proactive measures to modify their lifestyle and learn about their health vitals. Over time, this may help insurance companies reduce their out-of-pocket expenses related to claims.
A waiting time
There are several specific illnesses for which coverage is not accessible from the start of a health insurance policy. There is a one- to four-year waiting time for certain illnesses. When policyholders sign up for ongoing renewal of health insurance plans with the same firm for a period ranging from one year to four years, depending on their terms and conditions, the illnesses that are specifically excluded are taken into consideration for coverage.
Early enrollment in a health insurance plan facilitates people’s crossing of the waiting period, which occurs at a point of life when certain illnesses—which are typically excluded during the waiting period—do not typically strike healthy people. As a result, policyholders can start using the full benefit of their insurance early on. This makes it possible for policyholders to start receiving the full benefits of their insurance early on.
4. Bonus with No Claim
Health insurance compensates people who do not need to use its benefits and do not file a claim during the policy period in addition to paying for the medical costs of those who must be admitted to the hospital due to illness or an unintentional damage. These people are rewarded by having their insurance cover amount increased without having to pay an extra fee. One can accumulate a “No Claim Bonus” equal to 100% of the policy’s initial insured amount. This feature is helpful in older age groups when certain illnesses are more prone to occur and allows one to double the coverage at no additional expense. These include heart-related complications, diabetes, cancer, and hypertension.
5. Rebate on Income Tax
In exchange for paying the health insurance premium, an individual receives an instant financial benefit in the form of income tax refunds on the premiums they have paid. The following are health premium refunds offered in India: Insurance coverage for oneself and one’s family (spouse and kids) is INR 25,000. If a person or spouse is 60 years of age or older, they can deduct INR 50,000. An extra deduction of INR 25,000 for parents under 60 and INR 50,000 for parents 60 years of age or older can be made for the insurance of parents (father, mother, or both, dependent or not). Thus, the deduction that is permitted in a person’s annual income tax lowers the effective cost of a health insurance policy. This has the added benefit of providing both tax savings and financial hardship relief.
6. Age Is No Barrier
Nowadays, health insurance is accessible at every stage of life. To control insurance costs and still have a sizable level of protection for medical emergencies, a person can combine their base hospitalization coverage with a top-up health insurance plan. An individual might enjoy protection and tax benefits at a young age when tax-saving particular products with a minimal hospitalization cover are offered.
At the family stage, an individual can buy a family floater cover and also look for covers that offer maternity benefit, preferably with a waiting period. One can look at covers that offer outpatient department (OPD) expenses and the expenses for children’s consultation for vaccination among others that are available.
At a mid age, one can look at expanding the sum insured to individuals with a reasonably high cover as illnesses due to lifestyle habits and growing age start kicking in.
Due to entry-age limitations and pre-existing conditions, it can be challenging to find adequate and affordable coverage after retirement. As one of the few major components of a person’s monthly expenses that comes with retirement are medical costs, it is best for people to get health insurance coverage as soon as possible to better plan for their retirement.
Frequently Asked Questions
What alternatives does a health insurance coverage have when it comes to portability?
It is simple to transfer your policy from one insurance carrier to another; all you have to do is provide your current insurer notice at least 45 days in advance of the policy’s renewal. Your request for portability must then be approved by the new insurance provider, which might take anywhere from one to fifteen days to process. Additionally, you can port the insurance online.
Which advantages come with purchasing health insurance online?
• Quick and simple procedure. • A variety of options. • Has the ability to evaluate internet quotes and choose a cheaper premium. • Not having to deal with agents or their commission. • The payment procedure is quite easy. • Direct policy issuing via email that you have registered. • Less paperwork.
