Health Insurance Benefits: You Need to Know It

Health insurance policy is basically designed to cover the policy holder financially when faces a medical emergency caused by illnesses, accidents, or hospitalization. It has long-term benefits that make a health insurance policy a definite goal in annual financial plan. Let’s take a look that how health insurance can benefit a policy holder.

1.The cost of hospital admission/ hospitalization

Illness hospitalization

Health insurance policies cover the expenses incurred while undergoing treatment in a hospital for any type of diseases. Covered expenses include any costs related to treatment, including:

Accidental hospitalization

Any costs incurred for the treatment of an injury due to an accident are covered by health insurance policies. These include any associated costs related to the treatment of an accidental injury that is covered by the health insurance plan. Such as:

The option to choose a room rental limit is an important determinant in your health insurance policy. Because charges such as diagnostic and doctor’s fees are directly related to the category of room chosen during treatment in the hospital. This feature includes options. For example, a fixed amount linked to the total sum insured for an individual or a private room. Even there is no limit on the rent of the room during treatment in the hospital.

The cost of daycare

With advances in treatment methods, there are many procedures that do not require overnight hospitalization. Health insurance plans are designed to help policyholders in cases in which such treatment is covered as well as without traditional hospitalization.

Alternative therapies

These days, not everyone prefers allopathic treatment, and there are some diseases that can be effectively treated through other alternative medical treatment methods such as Ayurveda, Siddha, Unani, and homeopathy. Some health insurance plans also cover the cost of such alternative treatments.

2. Pre- and post-hospitalization expenses

When a person is treated in a hospital, there are a series of doctor visits that are accompanied by diagnostic tests that need to be done for you before and after your treatment. These costs are taken into account by some health insurance. For example, health insurance plans pay for hospitalization expenses for treatment, but they also take into account pre-hospitalization expenses for a certain number of days, ranging from 15 to 60 days before treatment. They also cover the costs of follow-up visits, medications, and diagnostic tests after you are discharged from the hospital. Some health insurance plans pay for expenses that occur 30 to 90 days after a person is discharged from the hospital.

The Cost of Transportation

This benefit covers the cost of the ambulance and is usually offered as a sub-limit of around $ 20 for each hospitalization during your policy cycle.

A health check-up

Health insurance plans are primarily designed to take care of financial stress in case of a medical emergency. However, insurers also want people with good health in their portfolio.

To ensure that a person is aware of his health, most health insurance plans offer preventive health check-ups on an annual basis. It helps the individual to know about the important aspects of their health and take corrective measures to bring changes in their lifestyle. In the long run, this helps insurance companies potentially reduce their claims costs.

Read it Health Insurance

3. The period of waiting

A health insurance policy has certain diseases for which coverage is not available from day one. The waiting period for a specific disease ranges from one year to four years. Diseases that have been specifically excluded They are considered for coverage after policyholders sign up with the same company for continuous renewal of their health insurance plan for a period ranging from one year to four years as per their terms and conditions.

Taking a health insurance plan at a young age helps individuals overcome the waiting period at this stage of life. where specific diseases, which are usually excluded during the waiting period, there are no healthy people. This enables policyholders to take full advantage of the insurance cover at an early age.@3. There’s no bonus claim.

Health insurance not only covers the medical expenses of those who have to be hospitalized for illness or accidental injury. It also rewards those who do not need to avail health insurance benefits and do not make a claim during the policy period. Such individuals are rewarded by increasing their insurance. 5. Income tax rebate

When a person pays an insurance premium for health insurance, There is an immediate financial benefit in the form of income tax exemption on the premium paid by an individual. Health insurance premiums in USA are as follows:

Health insurance for self and family (spouse and children) is $ 250. If the individual or spouse is 60 years or older, So the available deduction is $ 500. The additional deduction for insurance of parents (father or mother or both, whether dependent or not) is available up to a limit of $ 250 for those below 60 years of age and $ 500 for parents aged 60 years or above. Thus, the effective cost of a health insurance policy is less than the deduction allowed in an individual’s annual income tax. This is a built-in double benefit of tax savings along with protection against financial stress.

4. Age is not a barrier

Health insurance is available at all stages of life. An individual can combine the basic hospitalization cover with the top-up health insurance cover to manage the cost of insurance and still get reasonably large protection for medical emergencies. At a young age, when certain tax-saving products are available with low hospitalization coverage, So an individual can enjoy the protection and tax benefits.

At the family level, an individual can buy a family floater cover and also find covers that offer maternity benefits. preferably with a waiting period. One can see covers that offer outpatient department (OPD) charges and child counselling charges for vaccination.

In middle age, one can consider extending the sum insured to those with reasonably high cover. Because diseases start due to lifestyle habits and increasing age. At post-retirement age, it is difficult to obtain adequate and reasonable coverage due to restrictions on entry age and pre-existing illness. It is advisable for individuals to take health insurance cover at an early age to plan their retirement better as post-retirement medical expenses are one of the few major items of monthly expenditure for an individual.