12 Advantages of Health Insurance

Increasing number of people are following a sedentary lifestyle owing to which there has been a drastic change in their food consumption patterns along with low physical activity. There is mounting stress in people that is arising from the mighty task of juggling between work and life. Also the polluted atmosphere and unhygienic living patterns have given rise to a host of diseases.

In today’s scenario where prices of even necessities are surging at an alarming rate, earning from one person in the household is no longer sufficient to lead a comfortable life. Healthcare services are also very expensive and since healthcare emergencies come without advance notice, you must start planning for such sudden huge expenses beforehand by investing in right healthcare plans.

One of the biggest advantages of health insurance is that it covers all the pre-hospitalisation and post-hospitalisation expenses and therefore protects your finances against high medical bills. It also defends your family from the burden of urgently arranging cash to meet these expenses. Here are the major advantages of health insurance which provides comprehensive explanation for the need to buy a health insurance today:

1. Cashless Claim Benefit

Most insurance providers offer the cashless claim facility, where you do not have to make any payments from your pocket while availing the treatment. All the hospitalisation expenses are mutually settled between your health insurance provider and the hospital. In order to avail this facility, it is mandatory that you opt for a hospital listed in the insurer’s list of network hospitals. You will just have to fill up a pre-authorisation form and show your health insurance card at the hospital to get the cashless claim benefit.

2. Complete Compensation of Medical Expenses

Health insurance plans are designed to compensate for the medical expenses incurred or to be incurred without putting strain on your finances. It covers day care procedures, hospitalisation expenses, ambulance charges, domiciliary expenses and others. This enables you and your family to contribute to your speedy recovery instead of getting stressed to pay the high medical costs.

3. Coverage Against Critical Illness

Either as a distinct plan or a rider on your existing insurance plan, insurance providers nowadays offer coverage against critical illness. This kind of health insurance plan covers all medical expenses against life threatening diseases such as heart attack, kidney failure, bone marrow transplant, physical disability, etc. You are eligible to receive a lump sum amount under this plan upon diagnosis of any critical illness mentioned in the list in the policy document.

4. Online Buying Facility

With things moving digital, you don’t have to tap agents to buy insurance policies anymore. Policies can be easily purchased online through specialised insurance brokers who provide a detailed comparative analysis of various policies offered by different insurance providers. This helps the customers in understanding which company and policy will suit their needs and requirements.

5. Additional Coverage Above Employer Group Insurance

Companies get their employees insured under the group insurance plan but these policies are not tailor made to cater to the individual needs of employees. Loss of job or unemployment may render you ineligible to use the insurance in case of emergencies. This is why, purchasing a dedicated health insurance cover for yourself is very essential.

6. Different Premium Payment Structures

Few years ago, the premium payment structures of most companies in India were same but several insurance providers now have set up zone based premiums for metros and towns. Since health care expenses are greater in metro cities as compared to towns, the premiums in this zone are comparatively higher.

7. Renewal

Many traditional health insurance policies come with fixed limit in terms of years but many contemporary policies provide greater flexibility owing to their renewability.

8. Taxation Benefits

Health care insurance plans offer taxation benefits as the premiums paid for the policy become eligible for deductions under Section 80 D of the 1961 Income Tax Act. In case you are below 60 years of age, you may claim up to Rs. 25000 of tax benefits on the health insurance premiums of yourself, your spouse and dependent children. In addition to this, you can also claim tax benefit of Rs. 25000 for premiums paid for your parents’ policies.

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9. No Claim Bonus

In the recent years, many insurance companies are attracting more customers by offering them no claim bonus on their health insurance policies.

10. Restoration

Many health insurance policies come with the provision of restoration where the sum insured is reinstated in case the insured uses the entire coverage amount in one year.

11. Maternity Coverage

As opposed to traditional insurance policies, many insurance providers are now offering maternity cover and even bear the vaccination expenses of the newborn child.

12. Portability

Nowadays, policyholders have the right to switch their insurance plans with different insurance companies in order to seek greater advantages and coverage.

These advantages of health insurance should be kept in mind while choosing among different health insurance plans with various insurance companies. On the basis of your personal needs and requirements, you must select a plan that gives you the opportunity to enjoy most of the benefits.