Advantages and Disadvantages of Health Insurance

• Written by Mudit Handa

  Reviewed by Akhil Pillai

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The sudden need for medical care can interfere with your life and cause financial burdens. This is where health insurance is a safety net to secure your finances in case of medical emergencies.  A health insurance policy is an agreement between the insurer and the policyholder, where the insurer pays for particular medical expenses in exchange for regular premium payments. It covers costs incurred during planned treatments, medical emergencies, injuries, diseases, or other health-related issues. 

However, like every life decision, choosing health insurance comes with pros and cons. Therefore, understanding its limitations is critical for making an informed decision. This guide will discuss the advantages and disadvantages of health insurance to help you make informed decisions about your health and finances. 

Advantages of Buying Medical Insurance

Health insurance offers financial security and access to quality healthcare. Here are some of the key benefits it provides:

• Cashless Treatment: Health insurance provides access to network hospitals where you can receive treatment without paying upfront.
• Critical Diseases: Health insurance plans usually cover treatment for a range of critical illnesses, reducing the financial burden related to such diseases.
• Financial security: Health insurance covers hospitalisation, surgeries, treatment expenses, and more, protecting you from unexpected medical costs.
• Maternity Coverage: Many health insurance plans offer coverage for prenatal, newborn baby care, and delivery. 
• Preventive Care: This involves regular checkups, diagnostic tests, consultations, and vaccinations to diagnose problems early. 
• Tax Benefits: Health insurance premiums are often tax-deductible under Section 80D of the Income Tax Act, providing additional savings.
• No-Claim Bonus: If you don't file any claims during a policy year, you may be rewarded with a no-claim bonus.

Disadvantages of Health Insurance

While health insurance offers numerous benefits, it’s important to be aware of potential drawbacks:

• High Premiums: Quality coverage might cost a lot, mainly for senior citizens and people with pre-existing conditions. 
• Waiting Period: Policies usually have specified waiting periods before you can claim benefits for specific illnesses or conditions.
• Restricted Network: Cashless claims may only be available at specific network hospitals, thus limiting options. 
• Claim Rejections: Insurers may deny claims due to technicalities or non-disclosure of pre-existing conditions.
• Exclusions: Certain treatments, such as cosmetic surgery or some pre-existing conditions, may not be covered by your policy.
• Out-of-pocket Expenses: Even with insurance, you may still incur expenses like deductibles, co-payments, and non-payable items.

Why Invest in Health Insurance? 

Investing in health insurance offers financial security and access to quality healthcare when you need it the most. It protects you from unforeseen medical expenses, gives you mental peace knowing you are financially secure, and prioritises your well-being. Here’s why to invest in health insurance: 

• Minimise Financial Strain: Health insurance gives coverage for medications, hospitalisation, and treatments, that helps reduce financial strain during medical emergencies. 
• Support Preventive Care: Many policies include annual check-ups and preventive screenings to promote good health. 
• Access to Quality Care: A significant benefit of health insurance is receiving timely and efficient medical treatment without sacrificing quality. 
• Tailored Plans: With suitable health insurance, you can choose plans that meet your specific needs, such as family floater plans, senior citizens, or individual plans. 
• International Coverage: Some insurance policies provide international coverage that safeguards you when travelling or moving abroad. 
• Protection Against Lifestyle Illnesses: As lifestyle-related illnesses like diabetes and hypertension become more common these days, health insurance presents affordable treatment when necessary. 

How to Buy Insurance Online?

In order to understand the benefits of health insurance policies purchased online and related limitations, let's first understand the purchasing process. A health insurance plan can be purchased offline by visiting a nearby branch. However, if you do not want to step out, here is how you can quickly invest in the best health insurance in India:

Step 1: Visit the home page and click on any of the insurance policy options as per your need, for instance, health insurance or travel insurance

Step 2: You need to enter your email or mobile number to get the quotations. In no time, you will get the policy quotations.

Step 3: Take your time and choose the insurance option that best suits your needs. 

Step 4: Enter details as asked, like name, address, mobile number, etc. and upload documents as required

Step 5: Make the payment online via any of the preferred modes and complete the process

You may also find the “View Plan” option on the home page. By entering your mobile number, you can quickly get the quotations and proceed further. While purchasing the policy, you can also choose add-ons to make your plan a more comprehensive one.

Advantages of Buying Insurance Online:

Now that you know how you can purchase the best health insurance in India through Care, let's dive into the benefits of purchasing insurance online:

Cost-effective Option

Earlier when insurance policies were primarily bought and sold offline, various costs were included in the purchase process. Thanks to the online process, purchasing the best health insurance has become quite cost-effective.  All you have to do is visit the official website, follow the process and pay the premium. Hence bypassing brokerage, commission, and other related expenses.

Be Your Own Agent

With the availability of information online and quick policy purchasing options, you may not need an insurance agent anymore. This can help you avoid paying for agent’s commission. Also, any negligence on your part can lead to fraudulent cases. To avoid these risks, purchasing an insurance policy online is a great option.

Better Transparency

As a customer, you would expect transparency in information, be it payments or coverage. Transparency of policy details is of the paramount importance in case of health insurance.  Since online policy purchases do not require agents, you can check all the information with utmost transparency without the risk of being manipulated. All the policy-related details are readily available on the website and you may also connect with an executive at Care Health Insurance for more clarity on the topic.

Time Effective

Offline policy purchase requires you to physically visit a branch. For this, you may have to take a day off from your busy schedule or plan it beforehand. However, this is not the case when it comes to health insurance online. All you need is an internet connection and a smartphone/laptop/PC/tablet. Using any of these devices, you can quickly purchase an insurance plan of your choice without any hassle.

Increased Customer-company Clarity

It is highly advised and also a legal obligation on the part of the customer to provide correct information about themselves while purchasing insurance. In online policy purchases, the company connects directly with the customer and clarity is easier. Customers need to provide correct details directly to the company. Transparency in policy purchase ensures you get comprehensive and better coverage. The risks of claim rejection are also reduced.

Ease of Availability

There are no time restrictions when you shop for an insurance policy online. You may purchase a plan anytime anywhere as per your choice. Unlike the offline method where you need to visit a branch during office hours, the online platform is open 24*7 for anyone planning to purchase or renew a health insurance policy.

Online Status Check

After you purchase a policy, you may check the status of your plan within a few clicks. You need not step out of your house. You may check the policy expiry dates by checking your profile on the official website and renewing on time without any hassle.

Things to Consider While Buying Insurance Online

After understanding the benefits of online purchase of Care Health Insurance coverage, let's move further. If you are someone purchasing an online insurance plan for the first time, here are a few things you must know:

Lack of Guidance

While purchasing insurance policies online, you are the one who gets to decide the best health insurance for yourself. In such a case, someone who is new to insurance may struggle to understand all the terms and clauses. Having the guidance of an agent or insurance executive can better help you understand the best coverage for your needs. Go through our blogs to get detailed information on almost all health insurance issues. 

Personalisation

While looking for an insurance policy online, you can also personalise your Care Health Insurance policy according to your needs. However, it may require complete clarity of your needs as well as the plan you wish to buy. For some people, discussing the plan options face to face with an executive can be a good experience. If you want, you can connect to an executive, personalising plans can be an easy task.

Compare Before Finalising

You should always remember to compare all the available options before finalising a health insurance policy. Do not forget to compare multiple plan options, before making the final buying decision. With Care Health Insurance coverage, you can easily compare plans online and choose the best option available.

Over To You

Taking financial goals into account is a must when making a new investment like insurance plans. You may make a budget and then find plans that best suit your needs. Purchasing the best health insurance in India is now an easy task with online policy purchasing options. With Care Health Insurance, you get a range of insurance plans to choose from. In case of any doubt or query, you may connect with our executive who will help you get clarity and choose the best health insurance.

>> Also Read: Benefits Of Buying Health Insurance Online

Disclaimers: All plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.