In order to ensure financial protection, health insurance is very crucial. It can be beneficial in case policyholders require medical treatments.
As medical treatments can cost a lot of money, they can lead to a huge financial burden on the person. This financial burden can be reduced significantly if a person has a medical health insurance policy. A health insurance plan provides cover against various medical expenses. Therefore, ensuring the financial security of the policyholder.
5 Benefits of Health Insurance
- Cover Against Medical Expenses
In case the policyholder gets hospitalised, then the insurer can provide financial assistance to pay for his/her medical expenses. Apart from hospitalisation benefits, medical care plans can also cover pre and post hospitalisation expenses. Therefore, the policyholder can get cover against costs that might arise before hospitalisation and after getting discharged.
Furthermore, health insurance can cover alternative treatments like Ayurveda. It can also cover expenses arising due to an organ transplant.
Medical care plans can also provide convalescence benefit. Under this benefit, if the policyholder incurs any supplementary costs due to hospitalisation, then the insurer can cover such expenses. For example, the insurer can provide the replacement for the loss of income of the policyholder because of hospitalisation.
Policyholders can also get daily hospital cash. Under this benefit, the insurer provides them with financial assistance to pay for hospitalisation costs that aren’t covered in the policy. Furthermore, other benefits that policyholders can get are attendant allowance, free health check-ups, etc.
- Secure Policyholder’s Family
When selecting a health insurance plan, people who have dependants should consider opting for a family floater policy. With a family floater plan, a person can get cover for his/her family members. Hence, with the help of such a policy, an individual can get financial security for his/her entire family.
- Protect the Policyholder’s Finances
A person who isn’t insured will have to pay for the medical expenses from his/her pocket. As medical costs can be very high, these expenses can consume a person’s entire savings. Therefore, it is essential to get financial protection against medical costs. Thus, with the help of a health insurance policy, an insured person can secure his/her finances.
- Tax Benefits
Health insurance also provides tax benefits. Under Section 80D, a policyholder can claim up to Rs. 25,000 on the premiums paid to purchase a health insurance policy for self and family.
Furthermore, if the policyholder adds his/her parents to the policy, then he/she can get an additional tax deduction. In case the parents are below 60 years of age, the deduction limit is up to Rs. 25,000. The deduction limit is Rs. up to 50,000 if the parents are above 60 years of age.
- Provide Financial Protection Against Lifestyle Diseases
People are becoming more susceptible to lifestyle diseases. Therefore, the number of individuals suffering from illnesses like heart ailments, diabetes, etc. is increasing. Medical treatments for such illnesses can be very expensive. However, with the help of a medical insurance policy, policyholders can get cover against expenses that might arise due to such medical expenses.
The Importance of Health Insurance
Health insurance covers various medical expenses. Thus, it can help in lowering the financial burden. Therefore, it is recommended that every person considers purchasing health insurance to protect their finances.