Benefits of Health Insurance

What are the Benefits of Health Insurance ?

Here are significant benefits you must look for when opting for a medical insurance policy.

• Cashless Hospitalisation
• Pre and Post Hospitalisation Cover
• Annual Health Check-up
• Cover for Alternative Treatment
• Section 80D Tax Benefits

Cashless Hospitalisation

 Paying hefty hospital bills during a medical emergency is highly stressful. However, a health insurance policy offers a cashless facility, often within a few hours of the claim application process. This is one of the top benefits of health insurance in India. You don’t need to panic about money when you have a health insurance policy from us.
The cashless treatment facility in health insurance policies is available at any network hospital.. Under this feature, you will not have to make any payment from your pocket during any planned or emergency hospitalisation. 

Pre and Post Hospitalisation Cover

Among the various benefits of health insurance, coverage for pre- and post-hospitalisation is the most crucial. It is an exclusive feature available in health plans, unlike Mediclaim policies. This implies that the insured person will get coverage for expenses beyond essential hospitalisation. That may include Diagnostic Tests, OPD Expenses, Doctor Fees, Ambulance Costs, and Medications,
They may include maternity cover, cover for pre-existing illnesses, subject to waiting period, organ donor cover, etc. It is advisable to opt for a comprehensive policy that best suits your needs.
Also, the pre-and post-hospitalization features are highly beneficial for families as medical treatment involves a range of patient-care procedures—from diagnosing the problem to the actual treatment accompanied by post-hospitalisation care.

Annual Health Check-up

Diagnosing an illness or a medical condition early is crucial to a healthy life. This involves various diagnostic procedures, including physical examination and lab tests. Regular health check-ups are recommended for everyone, regardless of age, as they help detect any hidden medical issues and address them promptly.
The annual health check-up is a benefit to look for when choosing a medical insurance policy. This feature allows  policyholders to get health check-ups done through the cashless facility at any of the empanelled healthcare or diagnostic centres.

Cover for Alternative Treatment

Alternative forms of medical treatment. -AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy) are popular in India. Like the mainstream medical treatment methods, these alternative treatment methods have effectively cured various diseases. Thus, coverage for alternative treatment has become one vital feature that many buyers eagerly look forward to in their health insurance policy.
When buying a health policy, make sure to read the policy terms thoroughly. Understanding whether the expense coverage is provided at all healthcare centres or only at accredited centres is essential.

Tax Benefits of Buying Health Insurance

Tax benefits are a significant aspect of health insurance plans that help you increase your savings. If you have opted for a policy for yourself or your parents, you can claim a tax deduction under Section 80D of the Income Tax Act, 1961, on the premium you pay. You can claim deductions up to ₹ 25,000; for senior citizen parents, the limit is ₹ 50,000. Before doing so, make sure you have checked the maximum deduction limit you are eligible for under Section 80D.

Benefits of Reading Coverage Under Health Insurance

Reading the coverage details of your health insurance policy enables you to get the most out of your plan.

• Exclusions: Understand the specific conditions and diseases your policy does not cover.
• Claim Settlement: To avoid confusion or hassle, one must be well-acquainted with the claim settlement process before buying one.
• Improved Literacy: Understanding the benefits, coverage, and medical and insurance terms aids in making informed decisions. It enables you to make claims that are clear and grounded in fact for higher approval chances.
• Avoid Billing Issues: Reviewing your coverage and policy details helps prevent confusion with medical bills and insurance claims. 

Benefits of Care Health Insurance Products

Given below are some of the benefits of health insurance products offered by Care Health Insurance:

• Streamlined claim process: Policyholders can leverage higher customer satisfaction by submitting all the documents simultaneously. Plans like Care Advantage and Care Supreme include major medical expenses like pre- and post-hospitalisation costs, in-patient care, daycare treatments, ambulance cover, and AYUSH treatment.
• Valuable bonuses: Care Health Insurance offers different bonuses to the policyholders, such as No Claim Bonus (NCB). It provides an increased sum insured for each claim-free year. Secondly, under the Care Supreme plan, you will get a 100% increase in your sum insured for 5 consecutive years under Cumulative Bonus Super.
• Customisable plans with optional add-ons: Enhance your coverage with add-on covers such as Unlimited Automatic Recharge and Daily Allowance. In all care products such as Care Advantage, Ultimate Care, and Care Supreme, the entire sum insured is restored and will be available for future medical expenses. 
• Wide Network of Providers: Under our Care Supreme plan, we provide access to hassle-free facilities and health services at over 24,800+ network providers. The insured can opt for cashless hospitalisation. 
• Waiting Period for Pre-Existing Conditions: If you have pre-existing conditions, you can modify the waiting period from 36 months to 12/24 months. 
• Instant Cover: With the Instant Cover Shield, you can also opt for additional coverage with your base plan with Care Health Insurance and reduce the waiting period for pre-existing diseases to 30 days

Tips To  Maximise Health Insurance Benefits

Considering the high cost of hospitalisation, the amount of coverage sufficient for your family five years ago may not be enough now. Finding a balance between maximum benefits and affordability has become challenging for most people seeking health insurance benefits.

• Buy Health Insurance at A Young Age: Young people are considered fit and healthy and come in a low-risk category. You may not need expensive medical care. Secure comprehensive coverage at lower premiums when you're younger and healthier.
• Pick the Right One: Compare individual, family floater, critical illness, and choose a plan that suits your healthcare needs.
• Use Copay and Deductibles: You can lower your premium amount with a copay or deductible.
• Opt Wellness Benefits: Maintain good health and enjoy discounts and reward points at fitness centres.
• Use Add-Ons to Enhance Coverage: If a premium health insurance plan is out of your budget, you can enhance coverage of your basic budget medical insurance plan using add-on covers.

Tax Benefits of Buying Health Insurance

A good mediclaim policy in India helps with hospitalisation costs and offers tax benefits under Section 80D of the Income Tax Act. You can claim a deduction of up to Rs 1 lakh on premiums paid for health or life insurance policies. This applies to individual and family floater plans under the old tax regime. An individual can claim up to Rs 25,000; the limit increases to Rs 50,000 if you include your parents. The deduction limit is higher for senior citizens.Why Should You Invest in Health Insurance Early?

• Lower premiums, more benefits: Buying a policy in your 20s can help you monetarily in the later years. 
• Enhanced chances of scoring NCB bonus: For every claim-free year, you get a no-claim bonus, where the sum insured is increased without raising the premium amount. 
• Lesser dependency on guardians: By investing in the best health insurance policy early, you can release your guardians from financial bondage and prevent medical costs.
• Serving a waiting period is easy: You can enjoy uninterrupted coverage, and people are less likely to claim the coverage immediately after buying a health insurance plan due to good health.

How Insurance Companies Calculate Premiums?

An insurance company decides your premium based on various factors, and different companies use different criteria. Generally, the premium is calculated to consider the individual’s age, as the premium increases with age. Also, any pre-existing diseases impact the premium amount. This calculation might seem simple, but the actual amount is calculated using sophisticated, complex calculations. So, insurance companies consider some specific factors while calculating the premiums for a policy, which are mentioned below-

• Claims History: Past claims data assesses the risk associated with an individual or policy. 
• Actuarial Tables: Based on demographic data, insurance companies use actuarial tables to determine mortality rates and other risk factors. 
• Operating Expenses: Administrative costs and profit margins are factored into the premium calculation. 

How to Choose the Right Health Insurance Plan?

You would come across several health insurance plan options, but it's essential to analyse them to utilize the most of your policy. The topmost factors that you should consider are-

• Coverage & Benefits: Choose a plan that offers comprehensive coverage, including hospitalisation, pre/post-hospitalisation, critical illness, and ambulance charges. Ensure it covers a wide range of medical conditions.
• Network Hospitals: Check the insurer’s network for cashless treatment options, ensuring that reputable hospitals in your area are included.
• Premium & Deductibles: Compare premiums, deductibles, and co-payment clauses to balance affordability and the extent of coverage you need.
• Waiting Period: Choose a shorter plan for pre-existing diseases and specific treatments to ensure quicker coverage.

By understanding the features, benefits, coverage and exclusion of a health insurance plan, you can ensure that you make an informed decision while buying a plan. Don’t forget to compare multiple health insurance providers, evaluate the quotes and then customise your health insurance with useful add-ons to get an all-rounded coverage throughout the policy term.