Health insurance encompasses two types – Indemnity plans and Definite Benefit Plan. The indemnity plans are traditional health covers which cover hospitalization costs from the sum assured. Definite benefit plans offer lump sum payment on detection of illness.
What is Health Insurance?
Health insurance or medical insurance is a type of insurance that offers coverage against a range of medical, surgical, prescription drug and dental expenses you may face when you fall sick or meet with an accident.
A good health insurance policy covers you for a wide range of expenses that include hospitalisation charges, pre- and post-hospitalisation costs, day care treatments, laboratory services, prescription drugs, and ambulance changes. You also receive coverage for AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy). You can avail the coverage of your medical insurance policy either cashless at a network hospital or through the reimbursement of bills you have already paid.
What are the Benefits of Health Insurance?
Health insurance is an important means of safeguarding your finances during a medical emergency. Let’s take a look at some major benefits of having a health insurance policy.
Extensive coverage for medical expenses
From pre-and post-hospitalisation coverage to coverage for ambulance charges, day care procedures, and AYUSH, a health insurance policy goes above and beyond to ensure you get holistic coverage during a medical emergency.
Protection of savings
You do not need to dip into your bank account or sell family assets to pay for life-saving medical treatments. Your health insurance policy will help you afford the best in healthcare without pinching the pocket.
With a health insurance policy, you no longer need to worry about arranging large sums of cash for treatment at the eleventh hour. You can get planned and emergency treatment done cashless at network hospitals.
According to Section 80D of the Income Tax Act 1961, the premium paid towards your health insurance policy is eligible for tax deductions.
No claim bonus (NCB)
Not made any claims in the policy year? Your health insurance policy offers you a benefit called the ‘no claim bonus’ which sees you get an increase in your medical insurance policy’s sum insured at no extra cost.
Peace of mind
With a health insurance policy at hand, you can be rest assured breathe easy and focus on what really matters –i.e. rest and recovery.