6 Major Benefits Of A Health Insurance Policy In 2023

6 Major Benefits Of A Health Insurance Policy In 2023

Benefits Of Health Insurance

6 Major Benefits Of A Health Insurance Policy In 2023:- The main purpose of a health insurance coverage is to provide financial support in the event of a sickness, 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.

Hospitalization Cost

The fact that hospitalisation costs are covered by health insurance policies, whether due to disease or unintentional harm, is one of its most important advantages.

Illness hospitalization

Health insurance plans pay for expenses spent when receiving hospital care for any kind of disease. The following types of linked treatment-related charges are included in the covered expenses:

Room charges

Intensive care unit (ICU) charges

Doctors’ fees

Diagnostic tests costs

Surgery charges

6 Major Benefits Of A Health Insurance Policy In 2023

Accidental hospitalization

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:

Room rent

Doctor/surgeon fees

ICU charges

Diagnostic test costs

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Capping on room rent

The ability to select a cap on room rent within your health insurance policy is a crucial factor to consider because costs like diagnostic and physician fees are closely linked to the type of room a patient selects while receiving hospital treatment.

Day care expenses

With improvements in treatment techniques, many surgeries no longer need an overnight stay in a hospital. Health insurance policies are designed to assist policyholders in situations like these by paying for similar treatments in lieu of the usual hospital stay.

Alternative treatment

These days, not everyone is a fan of allopathic medicine. Ayurveda, siddha, unani, and homoeopathy are a few alternative medical practises that may be used to effectively treat some disorders. Such alternative treatments are also covered by several health insurance policies.

2. Pre-and Post-Hospitalization Expenses

When receiving treatment at a hospital, a patient must undergo a number of doctor visits in addition to the necessary diagnostic testing both before and during their stay. Some health insurance policies reimburse these costs.

For example, health insurance policies cover hospital treatment costs, but typically also account for pre-hospitalization costs for a period of time, usually 15 to 60 days before treatment begins. After you are released from the hospital, they also pay for the costs of diagnostic tests, medications, and follow-up appointments. These costs can be reimbursed by certain health insurance policies between 30 and 90 days after a patient is released from the hospital.

Transportation cost

This benefit pays for ambulance expenses and is typically provided up to a sublimit of around INR 5,000 for each hospitalisation 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.

Waiting period

There are several specific conditions 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 policies with the same firm for a period ranging from one year to four years, depending on their terms and conditions, the illnesses that are expressly 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 may start using the full benefit of their insurance early on.

6 Major Benefits Of A Health Insurance Policy In 2023

4. No Claim Bonus

Health insurance compensates people who do not need to use its benefits and do not file a claim during the policy term 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. Income Tax Rebate

In exchange for paying the health insurance premium, an individual receives an instant financial advantage in the form of income tax refunds on the premiums they have paid. The following are health premium refunds offered in India:

Health insurance for self and family (spouse and children) is INR 25,000

If individual or spouse is 60-years old or more, the deduction available is INR 50,000

An additional deduction for insurance of parents (father or mother or both, whether dependent or not) is available to the extent of INR 25,000 if less than 60 years old and INR 50,000 if parents are 60-years old or more.

Thus, the deduction that is permitted in a person’s annual income tax lowers the effective cost of a health insurance coverage. This has the added benefit of providing both tax savings and financial hardship relief.

6. Age No Barrier

Nowadays, health insurance is accessible at every stage of life. To control insurance costs and yet have a sizable level of protection for medical emergencies, a person can combine their standard hospitalisation coverage with a top-up health insurance plan.

At a young age, when tax saving specific products are available with a low hospitalization cover, an individual can enjoy protection and tax benefits.

When it comes to family insurance, one can get a family floater policy and search for policies that include maternity benefits, ideally with a waiting period. Among the options offered are plans that cover costs for children’s immunisation consultations and outpatient department (OPD) visits.

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 entrance age limitations and pre-existing disease, it might be challenging to receive adequate and fair coverage at a post-retirement age. Getting health insurance early in life can help people plan their retirement better because one of the few major expenses that come with being an adult is medical costs after retirement.

Read More:- Benefits Of A Health Insurance

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