What is Health Insurance? A Complete Guide
Published On Dec 28, 2021
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A health insurance policy is the best solution when it comes to finding financial stability in terms of fruitful investments. It not only protects your finances but also ensures that health facilities are readily available. There are many advantages to having robust health insurance.
What are Add-On Covers in Health Insurance?
Sometimes, a basic health insurance cover might not be sufficient for the insured person. In that case, add-on covers are required to enhance the protection provided. Each add-on cover is catered towards a particular purpose like ambulance cover, emergency hospitalisation and more. Although, you have to pay a different premium amount for the add-on cover, it is more economical than a whole new insurance policy.
Advantages of Health Insurance
If you are still wondering whether having a health insurance policy is worth it, take a look at some of the advantages that health insurance policy brings.
Tackling Rising Costs of Health Facilities
Inflation is a pertinent problem in today's world. To tackle it efficiently, one needs to make plans beforehand. To have access to sufficient medical facilities while having inflation, one must invest in a health insurance plan to pay for them. Rather than compromising on the quality of medical attention, it is better to prepare for future contingencies beforehand.
Investing can actually help you save on your money! Not only does it help you invest your earnings in a fruitful manner, but also provides tax saving facilities which help you save up in the long run. Tax savings are available for all insurance policies according to the Income Tax Act of India. For senior citizens who are insured under health insurance policies, they can avail of additional tax saving benefits.
Help for Critical and Terminal Illnesses
The treatment procedures as well as medications for critical and terminal illnesses often incur heavy costs. Moreover, they may require prolonged aftercare which makes expenses rack up. This is why a health insurance policy is required to cover such costs. Having a long time investment towards such possibilities is better than facing them at the get go, which can be stressful and also, quite difficult.
No Claim Bonus
Health insurance policies reward policyholders even if you don't make any claims against it. This is why it is advisable to not make claims for little things. It helps save for any future contingencies that may require heavy costs. A no claim bonus is incurred when no claims are made against a health insurance policy. This cumulative bonus, which is put into effect as a discount, is levied when the policy is renewed for a new policy term.
Many health insurance policies have cashless claim facilities. Under this kind of benefit, the insured does not have to pay anything out of their own pocket. The costs are directly settled by the insurance provider once the hospital contacts them. This is greatly advantageous as it provides easy hospitalisation, especially when there is an emergency and immediate hospitalisation is required.
A health insurance policy is therefore a very important asset. You must get it as soon as possible. Buying a health insurance policy when you are young helps you get lower premium rates as well as stay protected against medical expenses from a young age. The advantages of having a health insurance policy are numerous and must be taken into account while making a careful decision about the future.
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.