What are the Benefits of a Health Insurance Plan? – Daily Pioneer
The pandemic time has made the entire world realise that medical emergencies and unpredictable events can lead to financial upheaval. Moreover, with the rising cost of healthcare, the sale of health insurance plans has witnessed a sharp increase.
However, are you well-informed of the benefits of the best health insurance plan? Do you know the factors to consider before taking health insurance? If not, we ensure you are in the right place.
Read on as we disclose important details about health insurance plans.
What is a Health Insurance Plan?
A health insurance policy is an agreement whereby an insurance company guarantees compensation for medical expenses if the insured meets an accident that leads to hospitalisation or becomes ill.
It extends coverage to medical expenses, including hospital bills, consultation fees, medicines, etc.
You can buy a health insurance policy for a specific period by paying a premium. Besides, the three primary deciding factors of health insurance include the insured’s age, health habits, and the sum insured.
What is the Importance of a Health Insurance Plan?
Buying a health insurance plan for self and loved ones is essential. This is because the cost of healthcare has witnessed a sharp increase, mainly in the private sector. Hospitalisation due to sickness can burn your pocket and create financial havoc.
Moreover, the situation worsens if the earning member of the family gets sick. All of this can be avoided with a health insurance policy. A good health insurance plan covers all the costs, such as cost towards medical tests, hospitalisation charges, ambulance charges, consultation fees and even post-hospitalisation recovery costs to an extent.
What are the Primary Benefits of a Health Insurance Plan?
If buying a health insurance plan does not sound convincing enough, read thehealth insurance benefits.
Provides Coverage Against Medical Expenses
The primary benefit of taking a health insurance plan is to receive the best medical services without any financial strain. The best health insurance plan provides coverage against high medical expenses.
It covers ambulance charges, domiciliary expenses, daycare procedures and hospitalisation expenses. Therefore, you can focus on recovery instead of health costs.
Provides Coverage Against Critical Illnesses
Most insurance service providers offer coverage against critical illnesses, either as a rider or a standalone plan. Such healthcare policies offer coverage against life-threatening diseases like kidney failure, stroke, bone marrow transplant, loss of limbs, etc.
Upon the diagnosis of any such critical illness from the predetermined list of your policy, you get entitled to receive a lump sum amount.
Cashless Benefits
One of the major benefits of having health insurance is claiming cashless benefits. This implies that you are not required to make out-of-pocket payments. The medical expenses get settled between the insurance company and the hospital. This is beneficial if you are short of cash.
Lifetime Renewability
This option allows the policyholders to renew a health insurance policy without any upper restriction or age limit. This is especially helpful for senior citizens and parents as it takes off the financial pressure in case of medical emergencies.
Tax Benefits
Besides other benefits, buying health insurance also provides tax benefits. Under section 80D of income tax, the premium paid towards the health insurance policy is eligible for a tax rebate.
The benefits are available when you buy a health insurance policy for self, spouse, dependant children and parents.
Things to Consider Before Taking a Health Insurance Plan
Buying a health insurance plan may seem easy. However, it is vital to consider some important factors.
Network Hospitals
The insurance provider has tie-ups with certain hospitals to give you cashless benefits. This implies that the expenses get settled between the insurance provider and hospital when you visit a network hospital listed with your insurance company.
Waiting Period
Usually, health insurance plans come with a waiting period of 30 days. This period applies to hospitalisation arising due to sickness and diseases. However, hospitalisation arising due to accidents is covered right from the policy starts.
Riders
Riders are additional benefits not included in the base plan. Most insurance companies offer riders and add-ons for a slightly higher premium amount.
The policyholders can buy riders and add-ons as per their requirements. Critical illness cover, personal accident cover, maternity cover are some examples of riders.
Survival Period
This is another critical factor you must look for. If you have a critical illness cover, the claim benefit is offered to the policyholder only if they have survived 30 days after diagnosis of illness.
Pre-Existing Diseases
In case you or the members of your family have a pre-existing condition before the purchase of health insurance, the waiting period is usually 2-4 years.
A health insurance policy is essential, given the high healthcare costs in India. Plus, health insurance offers a wide range of benefits.
However, it’s important to opt for a trusted insurance provider with an online presence. Lastly, compare different policies and choose the one that best suits your requirements.
Vinod Gill is a writer who specializes in writing content on Insurance and Finance subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Journalreporter.
