Pros And Cons Of Buying Health Insurance Plans
Published On Sep 06, 2022
Before choosing the best health insurance policy, it is important to examine the benefits and drawbacks of healthcare insurance generally. Many people are buying health insurance in response to their needs as a result of the nation's escalating health care costs. Due to the high expenses associated with coronavirus treatment, the COVID-19 pandemic has also increased public awareness of the significance of health insurance.
Benefits of Health Insurance
Below are some of the benefits of health insurance:
- Treatment and reimbursement without cash
The ability to offer the cashless facility in the network hospitals is one of the major benefits of health insurance. After presenting the insurance company's given health insurance card, customers can go immediately to the hospital and get admitted. In order to treat patients without accepting payment in front, the insurance companies have agreements with the hospitals.
The insurance companies also give you the option of choosing reimbursement. In other words, the client must first pay the medical expenditures before filing a claim with the insurance provider and providing all necessary documentation.
- Hospital admissions are simple
Typically, a patient is admitted to a hospital after making a small payment and beginning their therapy. Before discharge, the remaining balance must be paid; otherwise, the therapy would stop and the discharge procedure would be hampered. When a patient is admitted to the hospital and has a legitimate health insurance policy, this type of circumstance is not encountered.
- Financial Safety
The main advantage of health insurance is that it guards against the abrupt depletion of your assets and savings. If you don't have enough health insurance coverage, you can invest money in your child's education or marriage, only to lose that same money if you end up in the hospital. In the event of hospitalisation, health insurance with a Cashless or Reimbursement option safeguards your financial stability and keeps you from having to sell off assets to pay the hospital bills.
Healthcare Insurance Drawbacks
Below are some of the drawback of Health Insurance
- Waiting time
When it comes to terms and conditions, health insurance policies are similar to other types of insurance policies. There are three different waiting periods that are common in health insurance policies:
Initial/30-Day Waiting Time- This waiting period is applicable to all new policyholders who must hold off on filing a claim for any hospitalisation for at least 30 days. Accident-related hospitalisation is exempt from this waiting time.
Specific disease waiting periods The policy text lists a number of disorders with waiting periods of at least one year, including treatments for knee replacement, hernias, and cataracts. Prior to filing a claim for one or two of the conditions listed in the policy document, you must wait a certain amount of time.
- Premium Rises As You Get Older
The age of the customers and the chosen sum covered are factors that affect health insurance premiums. Age-related increases in the premium mean that it would be on the higher side for those over 60. This is brought on by the higher likelihood of hospitalisation as people age. The cost of health insurance would increase as the likelihood of hospitalisation increased.
Standard and customised exclusions are included in health insurance policies. The IRDA has set the standard exclusions for all health insurance policies, however the specific exclusions vary depending on the insurance company. Each insurance provider is free to include unique exclusions in the policy copy. Before making a purchase, the buyer must confirm any specific restrictions that each insurance provider may include in the policy wording.
When weighed against the benefits provided by healthcare insurance policies, the drawbacks of healthcare insurance are insignificant. Understanding the terms and restrictions specified in the policy text can help you avoid the drawbacks.