Benefits of Health Insurance Policy

what are the benefits of health insurance

The benefits of health insurance are discussed here in this article. But before discussing the various benefits of health insurance, here is a short description of what an ideal health insurance implies. Health insurance, as the name suggests is a medical insurance policy offered when the policy holder is hospitalized in order to support the financial aspects of his expenses. Health plays the most important role in an individual’s lifetime and determines the rate of growth and happiness of his family, success and surroundings. Therefore, it is very important to be prepared for any unfortunate and unpredicted health threats that might require an urgency of financial strength.

10 Benefits of health insurance policy

Now, the question arises as to, what are the various benefits one can draw by being a policy holder to a particular Health Insurance?  Why should one adopt a particular policy and compare with the others? Here are 10 best points to answer these questions. Comprehensive Health Insurance Plans for individuals and family aids the following purposes:

1. Meets Emergency

In case of major accidents, the patient might lose a considerable amount of blood, tissues or face major injuries in terms of fractures or even organ and system failures. This might require help from foreign doctors or instruments, might extend to the requirement to transfer the patient for immediate treatment. Health insurance policy would ensure help at such stages by providing the hefty amount at immediacy and hence provide to the emergency requirements of the hour so far as a human life is concerned.

2. Quality and safe treatment procedure

Often so happens that the health issue faced by the policy holder is a major one and it requires the usage of advanced technological instruments, the absence or lack of which could prove fatal to the patient. In such drastic cases, a Health Policy already planned, helps to meet the requirements meant for the quality treatment of the patient. Also, the patient might be having critical conditions such that he might have to be transferred to a better equipped hospital for the treatment in a metropolitan city. In such cases, a secure Health Policy assures safe treatment of the holder.

3. Financial stability

Immediate and unpredictable medical expenses may often cause sudden vast financial distress. It might have to be met by dipping into Provident Funds that have been fixed for other important events in one’s lifetime. Having a proper Health Plan assures oneself of immediate financial coverage, stabilizes situations that might otherwise have led to severe financial crisis during illness. Altogether, one remains better planned and maintenance of cohesivity in terms of financial status.

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4. Cashless Facility

Within a defined arena of network, a few hospitals have connected policy providers that scheme cashless facility with their policies under certain conditions. This is immensely helpful in case of emergency while the holder might not be possessing the ready cash for the ongoing treatment payable. In this case the insurer pays the amount directly to the institution, relieving the hospitalized person to bear the expenses from his own pocket. This facility ensures that the customer does not feel burdened by the immediate expenses that he has to bear in case of emergency conditions. This might also be facilitated by the involvement of a Third Party Administrator or TPA who pays the amount directly to the institution, without bothering the person immediately.

5. Cumulative Bonus or No Claim Bonus

For every consecutive year that the holder does not claim the financial aid as per the terms,  a bonus to the customer by the insurer in the form of an additional cover. A medical insurance plan may not provide the desired amount of cover in the very initial year of the tenure, however, the amount comes as a cumulative bonus in the subsequent years. Insurers might provide this coverage in the discount format to the premium payable in the subsequent years while some policy makers may also offer this bonus as a combination of both.

6. Tax Benefits

Many Healthcare Plans are known to provide tax benefits to their policy holders. Under the Section 80D of the Income Tax Act, 1961, Premiums paid towards the healthcare of the policy holder, are eligible for tax deductions. If the holder is under 60 years of age, one may claim a maximum of INR 25,000 as a part of tax benefit on health insurance premiums for the holder himself, his spouse and dependent children. He also gets to enjoy an additional tax benefit of INR 25,000 for his parents. In case, either of the parents of the holder is a senior citizen, he/she may claim a tax benefit summing up to INR 30,000.

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7. Provides an assurance to family

Health Insurances provides facility to all the family members. It includes a fixed sum assured in exchange for a single annual premium. This policy assures the secured coverage to two or more members of a family at the same time, in situations they are diagnosed with an ailment or hospitalized. In case, some unexpected situation occurs to the patient as the policy holder, the rest of the amount gets assured to the other member(s) of the family for the rest of the tenure or even for the medical expenditure of the rest of their lifetime as per the rules of the particular financial policies.

8. Modified Lifestyle

Healthcare is immensely expensive and especially in a heavily populated, rapidly developing country like India, it becomes immensely important factor one should look for and be cared after. With technological advances, new procedures and more effective medicines that have also come up that have raised the standards and cost of healthcare. While these high treatment expenses may be beyond the reach of many, taking the security of health insurances makes one more satisfied and less worried about unimagined circumstances, also it is much more affordable.

9. Smoothly plans indemnity issues

At times, apart from the expenses on medicines and core treatment, the total expenditure includes hospital room rent, rent on special treatment procedures, charges on some special instruments used, fees for the blood banks, operation theater charges and pre- and post-hospitalization charges as well. Health insurance provides a wonderful and effective compensation for the actual withdrawal of finance that has been incurred on the part of the policy holder. Some standard Indemnity Insurance policies even allows the holder to avail for the entire coverage amount a number of times during the valid tenure of the policy.

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10. Lump-Sum Benefit policies

This is a special type of policy that pays the entire sum of money assured in case the covered circumstance occurs. As for instance, if the health plan mentions coverage in case of a critical illness and the policy holder is diagnosed with the same, he/she would receive the benefits mentioned in the policy. The following cases could be considered under this policy:

  • Physiotherapy or similar rehabilitation procedure
  • Devices that monitor in case of critical illnesses
  • Supplements to Dietary requirements
  • Modifications to the room or ergonomic furniture required due to illness Follow-up investigations and further tests.

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