8 main benefits of Health Insurance, Disadvantage, Importance

Health insurance is a type of insurance plan in which the insured gets financial help in his emergency medical treatment. The health insurance policy chosen by the insured provides financial assistance towards expenses like surgical expenses, nursing expenses and critical illness expenses etc.

Types of Health Insurance Policy Main 8 types-

1. Discount in increasingly expensive treatments

Due to reduction in physically demanding activities and increasing dependence on technology, people have started falling ill. Medical expenses of new diseases are also increasing rapidly. Its growth has been consistently in the 3 digits (above 11 percent) for recent decades. Whereas the increase in prices of food and other essential items of life has been limited to one unit only (between 0 to 10 percent). The rising cost of treatment and medicines sometimes becomes beyond the reach of a common person. In such a situation, having health insurance comes as a big help for him.

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2 daily paid benefits

Under the Daily Cash Benefit Plan, you get a fixed amount of assistance on a daily basis during treatment. No matter how high or low the expenses are at the time of your admission.

3. Benefits related to treatment of serious diseases

In these, you are given a lump sum amount on detection of some pre-determined serious diseases and for the procedures related to their treatment. Diseases which are very fatal, such as heart attack, cancer, paralysis etc. Their treatment costs a lot of money.

4 Cashless treatment facility also available

Almost all major insurance companies provide cashless treatment facility. In this, you can get admitted to the hospital without paying a single penny. You can get yourself treated. Later the insurance company pays the expenses of your treatment. But, this payment is also made under the terms and conditions given in your insurance policy.

5. Benefits that pay for medical expenses

In hospitalization plans, out of the expenses incurred on the treatment of the insured person, only a pre-fixed amount is paid by the insurance company. Due to this specialty, such insurance plans are called indemnity plans. It is definitely beneficial in the treatment of any kind of disease or health problem.

6 plans per person or family

Any insured can take a combined family health insurance policy for the entire family. Under the fixed insurance coverage, there will be relief in the treatment of any family member. Its premium is cheaper or you can take individual health policy for one member of the family or for different members.

7 Provision for tax exemption on insurance also

You get tax exemption under Section 80D of the Income Tax Act on the medical expenses incurred by you or your family members. If you have taken a Insurance or Medical Insurance policy, then you get this tax exemption on its premium payment also.

8 No burden of lump sum payment

It is not right to raise a lump sum amount for treatment in case of sudden illness. It is even more important especially for the elderly. Because with increasing age the attack of diseases becomes more dangerous. And it happens often. Health insurance provides solution to such medical emergencies or health related problems. Small deposits in the form of premiums and sum assured help in meeting the lump sum expenses.

In case of certain fatal diseases, the benefit of health insurance policy is available only once. But most of the diseases are treated multiple times and benefits can be availed up to the limit of the insurance policy.

Which diseases are to be covered in your health insurance policy is decided at the very beginning. According to the severity of the disease and its recurrence, your policy is made and its premium is also made. These are benefit-based health insurance plans.

Some examples in case of insurance

For example, there are 6 members in a family and the insurance benefit of Rs 2 lakh is fixed separately for each person. In such a situation, no single member of the family can get help of more than Rs 2 lakh for himself. It will work like separate policies for all three persons. But if this plan of Rs 3 lakh is taken as a family health plan, then any member can get help up to Rs 4 lakh. But, keep in mind that all the members together cannot get more than Rs 5 lakh help.

For example, a person has taken a defined benefit policy of only Rs 1502. Now, if ever Rs 2050 is being spent on his treatment when he gets admitted, then he will get help only at the rate of Rs 1590 per day. On the other hand, even if his expenditure is Rs 1000, he will still get an assistance of Rs 1600.