Benefits of
Health Insurance
A good health insurance policy is a basic need in today’s age as it gives you financial coverage for sudden medical treatments, hospitalization and emergencies. It helps you stay financially prepared for whatever life throws at you without blowing a hole in your savings. It should be a part of your financial portfolio as there are many other great benefits that it offers as detailed below.
Top Benefits of Health Insurance
Below are some key benefits of health insurance in India:
Coverage for pre- and post-hospitalisation expenses
An illness may require both pre- and post- hospitalisation care. Pre-hospitalisation care can include health check-ups, diagnostic tests, doctor’s consultations and medicines among other things. Post-hospitalisation can include physiotherapy, rehab, medications, doctor’s consultations and more. Health insurance can be used to cover all such expenses that precede and follow hospitalisation.
Room rent coverage
Hospitals charge extra for the room you inhabit if you are hospitalised. The rent for hospital rooms can vary depending on their size, privacy and sharing options. Health insurance covers the cost of the room.
Cashless facility
A cashless facility allows you to receive medical care from a network hospital without paying for it upfront. With this option, the hospital lets you access care while the insurance company settles the bill with them on its own.
Medical check-ups
Medical check-ups can help you stay fit and better understand your health. This allows you to make suitable lifestyle changes, catch illnesses in their nascent stages and avoid further deterioration of your health. Health plans cover the costs of all medical check-ups.
Ambulance and transportation costs
If you hire an ambulance or any other transport medium to reach a hospital in case of an accident or illness, your health insurance will compensate you for the expenses.
Tax benefits
Health insurance benefits extend to tax savings. The premium paid towards a health insurance policy is covered under Section 80D1 of The Income Tax Act, 1961. You can claim a deduction of up to ₹ 1 lakh for a plan bought for yourself, your spouse, children or parents. The individual limit is ₹ 25,000 per policy if the insured is under 60 and ₹ 50,000 if the insured is over the age of 60.
No-Claim Bonuses
If you do not raise a claim during the tenure of the policy, the insurance company will offer you a no-claim bonus. This bonus provides a discount on the premium at the time of policy renewal and helps you save money.
What are the different types of health insurance plans available in India?
Below are some different types of health insurance plans you can purchase in India:
Individual plans
Individual health insurance plans offer financial protection to one person and cover them against medical expenses arising out of an illness or injury.
Family plans
Family health plans work similarly to individual plans. However, unlike individual plans that cover one person, these plans cover the entire family. A family health plan can be bought for self, spouse, children, parents and parents-in-law. The plan has only one premium, and the coverage is extended to all members covered under the plan.
Senior citizen health plans
Senior citizen health plans cover individuals over the age of 60. It may be tough for senior citizens to buy health insurance as they may have existing illnesses. Senior citizen plans address the unique health needs of older people and make it easy for them to access health insurance without any hassles.
Critical illness insurance plans
Critical illness insurance plans cover critical illnesses, such as cancer, kidney or liver issues, stroke, brain tumours and more. These plans are specially designed to offer a high sum assured to cover the high costs of treatment associated with such illnesses.
Personal accident insurance
Personal accident insurance offers financial protection in the unfortunate event of an accident. The plan covers the costs of ambulance, treatment, hospitalisation and post-hospitalisation care.
Maternity plans
Maternity plans offer health coverage to expecting and new mothers. These plans cover all the medical costs associated with pregnancy, including pre- and post-natal care, normal delivery, emergency C-sections, health tests, hospitalisation and any health complication arising in pregnancy or post-delivery.
Unit-linked health insurance plans
Unit-linked health insurance plans offer financial protection against medical costs along with an investment component. These plans divide the premium into two categories. The first is used to secure your health coverage, which is given to you when you raise a medical claim. The second is invested in market-linked funds, such as equity, debt or hybrid funds. The money invested and generated from these funds is given to you at the time of maturity.
Unit-linked health insurance plans offer a financial safety net against healthcare costs while allowing you to create wealth for your future goals.
Unit-linked health insurance plans offer a financial safety net against healthcare costs while allowing you to create wealth for your future goals.
How do you choose the right kind of Health Insurance Plan?
Below are some tips that can help you select the right plan:
Right Coverage
Health plans offer various coverage options, from critical illness plans to individual and family plans, providing you with a wide range to choose from. Additionally, the sum assured for health insurance can be customised based on your needs.
Evaluating factors such as your health, lifestyle, income, family medical history and the needs of your family can help you select a plan with suitable coverage.
Evaluating factors such as your health, lifestyle, income, family medical history and the needs of your family can help you select a plan with suitable coverage.
Suits Your Budget
It is crucial to pay the premium regularly and on time to maintain the active status of your health insurance. Failure to do so can lead to your policy lapsing. Therefore, selecting a health insurance plan that fits within your budget is essential. This reduces the risk of missing premium payments and keeps your plan active.
Individual Plans or Family Plans
You can evaluate your health needs and those of your family to determine whether you need to purchase individual health insurance or a family plan. While the former may be suitable if you are single and have no dependents, the latter can be ideal if you have family dependents. A family plan eliminates the hassle of paying premiums for multiple policies, and all your loved ones receive equal coverage.
Lifetime Renewability
As your health needs evolve over time, especially with age, it becomes increasingly important to maintain active health insurance coverage. The process of purchasing a new plan every few years can be time-consuming and burdensome. However, these hassles can be avoided by opting for a plan with lifetime renewability.
When selecting a health insurance plan, prioritising lifetime renewability is important. This provides you with ongoing financial protection without the inconvenience of having to purchase a new plan in the future.
When selecting a health insurance plan, prioritising lifetime renewability is important. This provides you with ongoing financial protection without the inconvenience of having to purchase a new plan in the future.
Preferred Hospital Coverage
Make sure to check the hospital coverage provided by your health insurance plan. It is crucial to examine the list of network hospitals to ensure that the plan includes facilities that offer quality healthcare and are conveniently located. Network hospitals typically offer cashless coverage to streamline access to medical care without delays.
As can be seen, health insurance plans come with many benefits and are a necessity for you and your family. Without further ado, secure yourself from medical emergencies today.
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