Top benefits of health insurance
Here are some key benefits of health insurance that you should know about.
Covers hospitalisation expenses
Health insurance policies cover all medical-related expenses incurred during hospitalisation. It covers expenses against medicines, doctor’s fees and nursing. It also covers expenses like room rent, ICU charges (if any) and diagnostic tests.
Covers pre-and post-hospitalisation expenses
Health insurance policies cover pre-and-post hospitalisation expenses. You get coverage for medical expenses incurred from 30-60 days before hospitalisation. You also get coverage for medical expenses incurred during the recovery stage. The insurers usually give coverage for 60-90 days after hospitalisation. However, the duration of coverage may differ from insurer to insurer.
Covers daycare procedures
Many modern treatment methods require you to get hospitalised for only 24 hours or even lesser time. Health insurance benefits include coverage for expenses of such daycare procedures that need less than 24 hours of hospitalisation. You can check the list of daycare procedures covered on the policy document when purchasing.
Covers domiciliary treatments
In many cases, the patient’s health condition may not permit to move the person to a hospital. Also, many a time, you may not find a bed available at the hospital. In such situations, doctors recommend home treatment under their supervision. Best health insurance policies cover treatments taken at home during these scenarios.
Covers alternative treatment
Insurers also recognise practices like Ayurveda, Yoga, Unani, Siddha and Homoeopathy (AYUSH). You can get coverage for AYUSH treatment up to the sum insured.
Covers annual health check-ups
Most health insurers offer the benefit of free annual health check-up with a health insurance policy. This helps you to keep a track of your health. It also enables you to take medical intervention on time if required.
Offers add-on cover for critical illnesses
Many health insurers offer critical illness cover as an add-on benefit on comprehensive health insurance plan. You get coverage for critical illnesses like stroke, kidney failure, heart attack, or cancer. You can check with the insurer on the list of critical illnesses covered when buying the health insurance policy.
Offers cashless treatment
You can avail the option of cashless claim settlement. This benefit of cashless health insurance helps you seek treatment at any network hospital without paying any cash directly to the hospital. You only need to inform the insurer 48 hours before planned admission or within 72 hours in case of emergency admission. The insurer will directly clear all the bills with the network hospital after completing the required formalities.
Reimburses ambulance charges
In case of an emergency, you may need to hire an ambulance and pay ambulance charges. Most health insurance policies provide coverage up to Rs. 3,000 per hospitalisation for road ambulance charges.
Family health insurance benefits
Family health insurance offers comprehensive coverage for your entire family under a single policy. It ensures financial protection against medical emergencies for all members, including spouse, children, and dependent parents. The benefits of health insurance for families include cost-effective premiums, higher sum insured, and access to quality healthcare without financial strain. Many plans also offer maternity benefits and newborn coverage.
Additionally, health insurance policies also offer tax exemptions under the relevant sections of the Income Tax Act.
Tax benefits under Section 80D
One of the key benefits of health insurance is the tax advantage it provides under Section 80D of the Income Tax Act. You can claim deductions on the premium paid for health insurance policies covering yourself, your spouse, children, and parents. The deduction amount varies based on the insured individual’s age and policy type.
Below is a breakdown of tax benefits available under Section 80D:
Insured individuals
|
Maximum deduction (Rs.)
|
Self, spouse, and children (below 60 years)
|
Rs.25,000
|
Self, spouse, and children (above 60 years)
|
Rs.50,000
|
Parents (below 60 years)
|
Rs.25,000
|
Parents (above 60 years)
|
Rs.50,000
|
Self (below 60 years) + Parents (above 60 years)
|
Rs.75,000
|
Self & parents (both above 60 years)
|
Rs.1,00,000
|
These tax benefits help in reducing your taxable income while ensuring financial security for medical emergencies. Always check with your insurer for updated deductions and eligibility criteria.
Why is health insurance necessary?
Health insurance is a crucial financial tool that helps individuals manage medical expenses effectively. With rising healthcare costs, having a good health insurance policy ensures that you and your family receive the necessary medical care without financial strain. Below are some key medical insurance benefits that highlight its importance:
- Financial security – One of the major benefits of health insurance is that it protects you from high medical expenses, reducing out-of-pocket costs during emergencies.
- Access to quality healthcare – Health insurance provides access to the best hospitals, doctors, and treatments without worrying about expenses.
- Hospitalisation coverage – It covers medical bills, including room rent, ICU charges, and doctor consultation fees.
- Pre-and post-hospitalisation coverage – Covers medical expenses incurred before admission and during recovery after discharge.
- Coverage for critical illnesses – Many health insurance plans include critical illness riders that cover severe medical conditions like cancer, stroke, or kidney failure.
- Cashless treatment option – Most insurers provide a cashless facility at network hospitals, ensuring hassle-free treatment.
- Ambulance and domiciliary expenses – Cover transportation and home treatment expenses if hospitalisation is not possible.
- Tax benefits under Section 80D – Premiums paid for health insurance are eligible for tax deductions, reducing your taxable income.
- Peace of mind – Knowing you are financially covered in case of medical emergencies helps reduce stress and allows you to focus on recovery.
Investing in a comprehensive health insurance plan is essential to securing your financial future and ensuring access to timely medical care
