Health insurance is the type of insurance policy whereby an insurance company is bounded to undertake a guarantee of compensation for medical expenses in case the policyholder falls ill or meets with an accident, which leads to hospitalization. Generally, health insurance companies collaborate with hospitals to provide cashless treatment to the policyholder. In case the insurance company has no tie-ups with the hospital, they reimburse the cost of expenses incurred by the policyholder. By making a deduction from income tax, the government is also promoting health insurance.
Let us have a look at some of the advantages of having a health insurance policy.
Cashless Claim Service:
If you are hospitalized due to some unforeseen event or medical emergency, you can avail the cashless benefit. An individual can avail medical treatment without paying for the same in the hospital because of the cashless hospitalization facility offered by health insurance companies under health plans. However, this facility is available only in the hospitals empanelled with the insurer.
The premium amount paid on a health insurance policy is eligible for deduction under Section 80D of the Income Tax Act. The amount of deduction available is up to Rs 15,000 for individuals or Rs 20,000 for senior citizens (aged above 65 years). In addition, an amount of Rs 20,000 is also available for exemption towards premium paid for dependent parents.
Co-Payment, CB& Other Benefits:
It is the common belief that health risks increase with the age of an individual. Therefore, if you buy individual health insurance at a younger age, the chances of your claim being rejected when you need it at a later stage are next to zero. Policies such as personal accident insurance, critical illness insurance provide extensive cover in case of specific illness or other unfortunate events. Co-payment is the thing, which can help you to reduce the premium amount you pay towards your health insurance policy. It is a pre-decided sum of money, which an individual promises to pay at the time of claim. The higher co-payment amount one chooses to pay at the time of claim, the lower will be the premium. However, in the process ensure that the co-payment amount is within your budget and can be easily borne by you at the time of a claim. In addition, if you have not filed an insurance claim during the tenure of your policy, then at the time of renewal, you can avail benefits on premium in the form of Cumulative Bonus (CB).
Always buy the health insurance policy by knowing and understanding the intricacies of the same. Important things to know – what does your health insurance policy cover you for and what it does not cover for you. Before deciding the health insurance policy, always go through the terms and conditions mentioned in the policy wordings. Never hesitate to ask your insurance provider if you hold any doubt in your mind with relation to your health insurance coverage’s and its benefits. The internet has made buying cheap health insurance relatively easy and convenient by providing the ability to compare plans and choose the best option at affordable rates.
Aarvi the owner and senior content publisher at Financeclap. Aarvi completed his education in BBA (Bachelor of Business Administration), and recently she was working as an assistant manager for the accounts company. She also works as a senior digital marketing consultant for one IT company in 2018. The main idea for starting Financeclap is to provide the best and helpful information related to the business industry to the readers. Aarvi main hobbies are playing cricket, watching videos and listening to music in the free time. You can learn more about her on about us page.