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Top 5 Benefits of Health Insurance Plans

Published On Jan 24, 2021 5:30 AM By Sakshi Aggarwal

Having a health insurance plan is important to protect you and your family from sudden, unfortunate circumstances such as disease and injury, But is that all they do? Not quite.

Listed below are the top 5 benefits of health insurance plans.

1. Reduced Financial Pressure

Being Injured or sick or having someone in your family who is, is stressful by itself. The medical bills are an added cause of worry. Having a health insurance plan ensures that you have support in times of emergency.

You can select the amount of sum you want to insure as per your needs and customize premiums as well. The insurance company will pay for the medical charges incurred up to the sum insured so you don't have to bear the financial brunt at once.

2. Cashless Hospitalization

Health Insurance companies have partnerships with certain hospitals which allows you to avail cashless hospitalization if you have purchased health insurance from them. The insurance company settles the bill directly with the hospital, saving you the time and additional paperwork. In case you wish to get treated at a hospital that is not part of the company’s network, you are required to pay the bill first, which the company then reimburses.

3. Tax Benefits

Health insurance can help save money spent on taxes as it makes you eligible for tax exemptions under section 80D of the Income Tax Act. The exemption depends on the premium being paid both for yourself and any of your family members, with an upper limit of INR 25,000 which can extend to INR 30,000 in the case of senior citizens. Hence offering a maximum Tax deduction of INR 55,000 from your taxable income.

4. Extended Coverage

Health insurance plans don’t only cover you from inpatient treatment but also cover ambulance charges, daily cash allowance, daycare treatment, Pre and post hospitalization expenses among other things. This Coverage can be further expanded by adding additional covers to the base policies according to your needs. These add ons come in various forms depending on a person’s needs. Covers that are frequently added are Critical illness cover, disability cover, maternity cover, and personal accident cover. Moreover, your health insurance policy can also be extended to cover your family members using floaters, providing a cover that is invulnerable.

5. Free Look Period

Most Insurance companies offer a free look period on their policies, ranging from 15 - 30 days. This is beneficial as you can utilize the period to familiarize yourself with the plan's features, benefits, and terms and conditions to understand if the plan suits your needs. If you decide that the plan is not for you, after all, your money will be refunded by the company and the plan would cease to exist.


Having a health insurance plan is important and there are several benefits to them, including but not limited to: Free look period, Cashless hospitalizations, Extended Coverage, Reduced Financial pressure, and Tax Benefits.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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