Everyone was affected by the pandemic, without a doubt. Still, those who were unprepared financially and lacked health insurance were the ones who suffered the most.
And suppose the deadly Covid-19 pandemic hasn’t served as the most prominent wake-up call for people who do not yet have health insurance, then what will, given how a single hospitalisation may obliterate your life savings in the absence of health insurance? ##
Therefore, if you haven’t gotten health insurance yet, there’s a good chance that you haven’t yet realised how important it is and what benefits come with it.
- Pre- and post-hospitalisation costs are covered
Contrary to popular belief, most health insurance plans cover more than simply hospital expenses. Subject to the pre-specified maximum and duration, the majority of health insurance policies typically include reimbursement for both pre- and post-hospitalisation costs.
- Many different insurance options are available
The majority of health insurance providers today provide various types of health insurance than only the most fundamental health insurance plans. Instead, a broad variety of policies are available that are suitable for different target consumers, depending on factors like affordability, claim coverage, included fees, waiting period, flexibility, number of dependents, etc. The most frequently provided plans include Individual Health Insurance, Family Floater Health Insurance Plan, Senior Citizen Health Insurance Plan etc.
- The availability of riders, add-ons, and top-up services
The availability of add-ons and riders on top of your purchased insurance is another important factor from which you can greatly gain.
Here, it’s crucial to remember that basic plans, as their name suggests, typically include basic coverages for hospitalisation, daycare procedures, etc., whereas adding riders or add-ons gives access to other unique or extra features and services like critical illness health cover, daily hospital cash, health coach, etc., but at an additional cost.
- Introduction of premium payment instalments
The IRDAI (Insurance Regulatory and Development Authority of India) has taken action in the last two years or so to address this issue by ordering insurance providers to begin accepting premium payments in instalments in 2019 and 2020, such as monthly EMI or quarterly, half-yearly payments, in addition to the currently available option of an annual lump sum payment. #
- Cashless claim service
The availability of cashless claims facilities is one of the most significant and important advantages of health insurance policies. For the uninitiated, a cashless claim facility suggests that the insurance company would pay the hospital directly for the medical expenditures associated with your treatment at one of the network hospitals. *
- Cumulative Bonus (CB)
Despite the fact that health insurance plans are often renewed annually by paying the required insurance premium, you are still eligible for CB if you did not submit any claims during the full prior year. *
And these two forms are primarily translated into by this CB. The first is into a bigger sum assured at the same current premium level, known as a cumulative bonus. The second is a cost-effective premium without affecting the cover amount. *
7. Premium tax benefits
This is most likely one of the main advantages of health insurance that frequently encourages consumers to buy it. After all, everyone in the taxable income group wants to reduce their tax liability. Although there is no damage if tax advantages motivate you to purchase health insurance, you must be careful not to purchase any health insurance coverage to take advantage of tax advantages.
Regarding the tax advantages, the premium paid for the self, spouse, dependent children, and parents may be deducted from income in varied amounts pursuant to Section 80D of the Income Tax Act. **
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.