Benefits and Importance of Health Insurance Plans

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Over the years, everything right from the lifestyle expenses to the cost of education and or medical treatment costs in India has been rising much faster than the inflation. Therefore, it is crucial for you to make investments in a way that you don’t need to face a financial crisis at the time of a medical emergency.

Investing in a health insurance plan makes for one of the best ways to protect self and loved ones against any medical emergencies or medical treatment expenses. Remember, the cost of medical treatments is prohibitive and soon it may become difficult for an average salaried individual to bear the uncalled for costs of medical emergencies. This is where health plan comes to your rescue. It provides you financial security against sudden expenses that may arise due to medical emergencies.

Listed below are just some of the many benefits of buying a health insurance policy in India:

Cashless Hospitalization: If you opt to avail medical treatment in one of the network hospitals of your insurance provider, you can avail the benefits of cashless treatment. This means you don’t need to pay for the treatment in your intended network hospital. Instead, your insurance provider will settle the expenses incurred directly with the hospital on your behalf.
Critical Illness Cover: There are some policies that are specifically designed to provide coverage for critical illnesses such as cancer, kidney failure, paralysis, etc. However, if you have a pre-defined medical benefits type of plan, then the insurance provider will give you a fixed lump-sum amount upon the confirmation or diagnosis of the enlisted critical diseases. Therefore, irrespective of the amount spent on the treatment of critical illnesses, you will only get a fixed lump sum amount from your insurance company.
Tax Benefits: Health plans also help you enjoy tax benefits under section 80D of the Income Tax Act 1961. You can enjoy tax benefits for up to Rs.55, 000. However, to claim this tax benefit, you’ll need to fulfil the below mentioned conditions:
    You need to an individual or HUF.
    You must provide the poof of the premium payment.
    You must have paid the premium amount through a medium other than cash.
The benefit of No Claim Bonus: For the past few years, many health insurance companies have been offering No Claim Bonus to its users. To pass on maximum benefits to the policyholders, some insurance companies even offer up to 100% No Claim Bonus.
No Age Limit: Gone are the days when there was a maximum age to renew health insurance policies. Now, you can renew your policy throughout your life or can even buy a health plan at any age.
Maternity Benefits: Unlike traditional plans, today most of the health insurance plans provide maternity benefits. Some insurance providers even cover vaccination expenses for newborn babies.
Option to Switch the Plan: Insurance companies have become so flexible these days that they provide the option to switch your current policy to a plan offered by a different insurer.
Option to Purchase a Policy Online: In order to make it easy for people to compare and buy health insurance plans, insurers now sell plans online. This means you don’t need to coordinate with an insurance agent in order to buy a health cover for self and family members.

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