Benefits of Health Insurance

Health Insurance

Health Insurance is essential in one’s life for a secured future. Opting for a Health Insurance policy will benefit the insured person. But many people are unaware of the benefits.

Health Insurance is an agreement between the insurer (Health Insurance Company) and the insured . Purchasing a Health Insurance policy will provide financial assistance for the insured’s medical expenses. The provided coverage may vary based on the insured’s chosen policy.

The benefits of purchasing Health Insurance are listed below.

Benefits of Health Insurance

Income tax benefits

According to section 80D of the Indian Income Tax Act 1961, an insured person can claim a tax deduction on the Health Insurance Premium and on the cost of preventive health check-ups for self, spouse and dependent children up to specified limits.

Hopitalisation expenses

If an insured person is hospitalised for more than 24 hours for treating any disease, illness or accidental injury in a hospital, it is called in-patient hospitalisation.

In addition, pre- and post-hospitalisation expenses will also be covered if it is related to the insured person’s in-patient hospitalisation.

Cover for Day Care procedures

Day Care treatments are treatment procedures that require less than 24 hours of hospitalisation due to the advancement in medical technology. Patients can discharge from the hospital after the consent of the medical practitioner on the same day of the treatment.

Most Health Insurance Companies provide Day Care expense coverage to the insured person. The Provided cover may vary based on the policy chosen by the insured.

Health check-ups

Diseases may arrive unannounced, so a complete periodical health check-up is advisable to eliminate any health problems in future. Some Health Insurance policies provide health check-up benefits up to certain limits mentioned in the policy documents for every claim-free year.

Cashless claim benefits

A Cashless claim is a mode of claim settlement where the insured does not have to pay the treatment expenses. The Health Insurance Company will pay the bills, so the insured can avail a hassle-free treatment.

The insured can avail Cashless treatment only in the Network Hospitals of the Insurance Company.If the insured is admitted in a non-Network Hospital, they can claim a reimbursement.

Alternative treatments

Many Health Insurance Policies will provide coverage for alternative treatments like Ayurveda and Homeopathy, offering the policyholders other treatment options.

This alternative treatment is called AYUSH treatment. AYUSH is an abbreviation of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy.

Hence, the policyholder can claim coverage for the alternative treatment without hesitation, if their chosen policy covers it.

Cumulative Bonus

A Cumulative Bonus in Health Insurance is a financial benefit for the insured. The insured person will obtain a Cumulative Bonus as a reward for not making any claims in a policy year. The bonus gets added to the Sum Insured without any change in Premium paid by the insured.

Organ transplant expenses

Most Health Insurance Companies cover the expenses of organ transplantation surgery incurred by the insured person who is a recipient. Certain Health Insurance policies purchased by the insured may cover the donor expenses of Re-do surgery and ICU admission.

The limits of organ transplantation coverage may vary based on the policy chosen by the insured.

Hospital daily cash

Hospital daily cash is a particular amount (based on the Sum Insured) provided by most Health Insurance Companies as financial assistance for the insured, after the completion of every 24 hours of hospitalisation. This benefit comes with certain time limits, as mentioned in the policy documents.

Dental treatment

Most Health Insurance policies cover Dental treatment or dental surgery due to accidental injuries and may require hospitalisation.

Maternity cover

Maternity cover is provided for the treatment costs associated with pregnancy and childbirth. Most Health Insurance policies will provide this coverage for the insured based on the Sum Insured.

Certain policies also cover both pre-natal and post-natal expenses up to the limits mentioned in the policies.

Cover for Domiciliary treatment

Suppose the mobility of the insured person worsens their illness, or the hospitals are filled with patients providing no space for the admission of the insured person. In that case, the insured person will get treatment in their home, similar to the care and treatment provided in the hospital.

Ambulance charges for transporting a patient

Most Health Insurance plans provide coverage for the ambulance expenses of the insured. In metropolitan cities, ambulance charges may be high. So having a Health Insurance policy covering your expenses will reduce your burden of medical bills.

Wellness benefits

Wellness benefits are certain activities offered by Health Insurance Companies for the well-being of their insured person. After completing each wellness program, the insured person may earn wellness points and get discount on Premium during renewal.

Conclusion

Purchasing Health Insurance will help you in your critical times. It also covers treatment costs and other expenses like ambulance charges, pre- and post-hospitalisation, etc.

So, purchasing Health Insurance will benefit the insured person in the form of a tax deduction. Kindly read the terms and conditions to know the inclusions and exclusions of the policy before purchasing it.

FAQ’s