Health insurance is an insurance policy that covers medical care expenses of the insured individual in case of illness or injury.
Health insurance is a vital backup that protects you from financial burden and debt. Healthcare is an expensive affair, particularly in private establishments and the prices keep on hiking each year. Medical emergencies are unforeseen and sudden, as well as inevitable therefore it is important to plan and be prepared for such an overwhelming situation.
Investing in a suitable health plan ensures that you and your family do not face financial trouble, especially if the income producer is the one who is hospitalized.
BENEFITS OF HEALTH INSURANCE
Health insurance has a wide scope when it comes to expenditure benefits, such as –
Pre-Post-hospitalization Expense Coverage
Health insurance aside from the cost of hospitalization also covers the pre-treatment and post-treatment. These are a series of diagnoses, prescribed tests, medicines and doctor visits that occur both before and after the treatment. Pre-treatment happens in the initial phases before hospitalization and post-treatment is the after-discharge process like follow-up visits, monitoring etc. Depending on the insurance plan, pre-treatment expense coverage may range from 30 days; while post-treatment can be around 60 days.
Welfare Check-Ups
Generally, health insurance is for medical emergencies, but most plans also include annual health check-ups so the individual gets to know the status of their health and can detect any illness early on. It’s a win-win for both parties as the client benefits from the health check-up and the company gets lower policy claims.
No Claim Bonus (NCB)
Health insurance proves to be beneficial not only to the ones who seek medical compensation but to also those who do not avail of it. No claim bonus (NCB) is a reward or bonus the insurance company gives the policyholders who did not claim by increasing their insurance sum without additional charges.
Room Rent Charges
Patients are assigned rooms according to their illness and its severity, the diagnosis and the treatment recommended. Accommodation expenditure at a medical facility depends on the category of the room such as – a general ward, a single cabin, ICU or ICCU.
There is a limitation to the expense the policy will cover, after which the policyholder will have to pay it themselves.
Transportation Charges
Insurance benefits cover additional aid of ambulance charges as well. Ambulance charges may vary depending on certain factors but they tend to be pretty pricey in metro regions, so it is best that transporting a patient via ambulance is under the policy’s scope.
Alternative Forms of Treatment (AYUSH)
Insurance policies have become accommodating of new alternative forms of medicine. Many people prefer organic and natural remedies over allopathic, chemical ones. They choose procedures of the disciplines of Ayurveda, Yoga, Unani, Siddha and Homeopathy which are now secured under the policy’s scope.
Income TaxBenefit
An individual is allowed tax deduction from their total income for medical insurance under Section 80D of the Income Tax Act. It is a bid by the government to encourage the people to invest in health care. It proves twice as advantageous with saving tax as well as paying for financial security. The value of this deduction differs according to age group.
In conclusion, health insurance is an essential financial decision to ensure a secure future. There are no pitfalls to it and the numerous benefits discussed above tell just how important it will prove to be in life.
In fact insurance is mandatory in many countrieslike travel insurance for Mexico, child plan for Vietnam and for car insurance Dubai.