6 Benefits of Health Insurance.
A health insurance policy is primarily designed to cover you financially in case of a medical emergency caused by illnesses, accidents, or hospitalization. It has long-term benefits that make taking a health insurance policy a definite goal in your annual financial plan.
Let’s look at how a health cover can benefit you.
One of the most pertinent benefits of a health insurance policy is that it covers expenses for hospitalization, whether it is for accidental injury, daycare expenses, capping on room rent, or illness.
Pre-and Post-Hospitalization Expenses
When an individual takes treatment at a hospital, there are a series of visits by doctors along with the diagnostic tests that are required to be done for you before you get treated as well as after. These expenses are considered by certain health covers also transport costs.
Generally, insurance companies have tie-ups with hospitals, known as network hospitals that offer cashless treatment to the insured in case of hospitalization. These hospitals reimburse the expenses related to treatment availed by the insured. This means you can avail of treatment at these hospitals without paying anything for the medical expenses.
Health insurance plans are designed to primarily take care of financial stress in case of a medical emergency. However, insurers also want people with good health in their portfolios. To ensure an individual is aware of their health, most health insurance plans offer preventive health check-ups every year
No Claim Bonus
Health insurance not only covers the medical expenses of those who have to seek hospitalization for illness or accidental injury but also rewards those who do not have to avail the benefits of health insurance and do not make a claim in the policy period. A “No Claim Bonus” can be earned up to 100% of the original sum insured in the policy.
Income Tax Rebate
While an individual pays the insurance premium for health insurance, there is an immediate financial benefit in the form of income tax rebates on premiums paid by an individual. In India, health premium rebates are as follows:
. Health insurance for self and family (spouse and children) is INR 25,000.
.If an individual or spouse is 60-years old or more, the deduction available is INR 50,000.