Health insurance is a financial assistance that provides a policyholder, financial cover for medical expenses. This is an assurance provided by the insurance company to an individual that if an individual is paying a regular premium to the insurer(Insurance company), The Insurance company will offer financial protection in case any healthcare expenses occur.
Health Insurance can provide financial coverage for quite a few medical expenses like doctor’s consultation fees, room rent, ambulance charges, medicine, and many more. But before we start to know some more benefits of Health Insurance, let us begin with knowing about the two types of health insurance that are available.
The two types of Health insurance
- Mediclaim policy
A medical insurance or mediclaim policy is a type of health policy that provides an individual financial coverage in case of his or her admission to a hospital. If a person has medical insurance, he or she can submit their medical expenses bill to the insurance company, and the insurance company will reimburse the policyholder for medical expenses.
In this policy, a policyholder can also opt for a cashless treatment option which makes the insurance company and hospital administrator liable for settling the medical expenses.
- Critical Insurance Plans
Unlike normal medical insurance policies, this insurance plan provides financial coverage for some specific and chronic medical conditions like kidney failure, cancer, heart disease, stroke, etc.
Unlike mediclaim plans, this policy does not reimburse the amount for medical expenses, but it provides a lump sum payout in case of a critical illness is detected. Here, The payout amount is pre-determined by the policyholder for which he or she has to pay the premiums. This ensures financial security and a substitute of income for the time you are not working due to the critical illness.
Advantages of health insurance
- Easy cashless claims
Mediclaim is a beneficial insurance scheme that provides financial security in case any medical expense occurs. If you have acquired health insurance then you can be assured that your medical expenses can be taken care of.
- Added protection
Additional Health insurance benefits can provide add-on assistance like newborn baby coverage, maternity, preventative health check-ups, and many more. It provides overall protection and peace of mind so that you don’t have to be assured about medical expenses.
- Dealing with Medical inflation
In the past years, the medical inflation rate has spiked high by more than 12 percent. That means an unprecedented rise in the prices of healthcare goods and services. This inflation has affected middle-income groups and families with a sole earning member, immensely. This medical inflation can only be dealt with a health insurance.
- Tax benefits
Under section 80C of the Income-tax Act, 1961, A substantial tax amount can be deducted as tax benefits. This gives a policyholder dual benefits. With Health insurance, not only you can get financial security for medical bills but also you can save on taxes.
Conclusion:
The significance of Health insurance is quite evident. This provides you financial security for your hospital bills and ensures that your hard-earned savings are not disrupted at times of any unforeseen events. It is a boon in times were medical expenses are on a soaring rise.