The pandemic period has made it clear to the world that medical emergencies and unpredictable events can lead to financial upheaval. Moreover, with the rising cost of healthcare, the sale of health insurance plans has seen a surge.
However, are you well informed about the advantages of the best mutual health insurance? Do you know the things to consider before taking out health insurance? If not, we make sure you’re in the right place.
Read on as we disclose important details about health insurance plans.
What is a Health Insurance Plan?
A health insurance policy is an agreement by which an insurance company guarantees compensation for medical expenses if the insured is the victim of an accident resulting in hospitalization or falls ill.
It extends coverage to medical expenses, including hospital bills, consultation fees, medications, etc.
You can buy a health insurance policy for a fixed period by paying a premium. In addition, the three main deciding factors of health insurance include the age of the insured, his health habits and the sum insured.
How important is a health insurance plan?
Purchasing a health insurance plan for yourself and your loved ones is essential. Indeed, the cost of health care has risen sharply, mainly in the private sector. Hospitalization due to illness can burn your pocket and create financial havoc.
In addition, the situation worsens if the family member who earns money falls ill. All of this can be avoided with health insurance. A good health insurance plan covers all costs, such as medical test charges, hospital charges, ambulance charges, consultation charges, and even post-hospitalization recovery charges to some extent. .
What are the main benefits of a health insurance plan?
If buying a health insurance plan doesn’t seem compelling enough, read the benefits of health insurance.
Provides coverage against medical expenses
The main advantage of enrolling in a health insurance plan is to receive the best medical services without any financial constraints. The best health insurance plan provides coverage against high medical costs.
It covers ambulance costs, domiciliation costs, custody procedures and hospitalization costs. Therefore, you can focus on recovery rather than health costs.
Provides critical illness coverage
Most insurance service providers offer critical illness coverage, either as a rider or as a standalone plan. These health care policies provide coverage against life-threatening illnesses such as kidney failure, stroke, bone marrow transplant, loss of limbs, etc.
Upon diagnosis of such a critical illness in your policy’s predetermined list, you are entitled to receive a lump sum.
One of the main advantages of having health insurance is to claim cashless benefits. This implies that you are not obligated to make direct payments. Medical costs are settled between the insurance company and the hospital. This is advantageous if you are short on cash.
This option allows policyholders to renew a health insurance contract with no upper limit or age limit. This is especially useful for the elderly and parents as it relieves financial pressure in the event of a medical emergency.
Along with other benefits, purchasing health insurance also offers tax advantages. Under section 80D of the income tax, the premium paid under the health insurance policy is eligible for a tax reduction.
The benefits are available when you purchase a health insurance policy for yourself, your spouse, your dependent children and your parents.
Things to Consider Before Enrolling in a Health Insurance Plan
Buying a health insurance plan may seem easy. However, it is essential to consider some important factors.
The insurer has links with certain hospitals to offer you cashless benefits. This implies that the costs are settled between the insurer and the hospital when you go to a network hospital listed with your insurance company.
Usually, health insurance plans have a 30-day waiting period. This period applies to hospitalizations resulting from illnesses and conditions. However, hospitalization resulting from an accident is covered from the start of the policy.
Riders are additional benefits not included in the base plan. Most insurance companies offer endorsements and add-ons for a slightly higher premium amount.
Policyholders can purchase riders and add-ons as needed. Critical illness cover, personal accident cover, maternity cover are some examples of endorsements.
This is another critical factor you need to look for. If you have critical illness cover, claims benefits are only available to the policyholder if they survived 30 days after diagnosis of the illness.
In the event that you or your family members have a pre-existing condition prior to purchasing health insurance, the waiting period is usually 2-4 years.
A health insurance policy is essential, given the high costs of healthcare in India. In addition, health insurance offers a wide range of benefits.
However, it is important to opt for a trusted insurance provider with an online presence. Finally, compare different fonts and choose the one that best suits your needs.
Vinod Gill is a writer specializing in writing content on insurance and finance topics. He is a digital marketing consultant, blogger and co-founder of Journalreporter.