Health insurance sector in India has seen rapid changes. The high cost of medical treatment has made people buy health insurance plans to cover medical expenses. People without health insurance plans will end up spending their savings on medical treatment. So, availing a health insurance plan will make sure, you don't dip into your emergency funds, in case you fall ill. Here are some of the advantages of availing health insurance plans.
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The main purpose of availing a health insurance plan is to cover all your medical expenses, without affecting your health and savings. Health insurance plan covers hospitalization expenses, pre-hospitalization and post-hospitalization charges. Hospitalization expenses are the expenses which are incurred during the period of hospitalization.
Pre-hospitalization expenses refer to the expenses incurred, 30 days before a patient is moved to a hospital for treatment. Medical Tests and Medicines are considered as pre-hospitalization expenses. Post-hospitalization expenses refer to the expenses that are incurred 30 days after hospitalization.
You can avail critical illness insurance either as a standalone plan or as a rider. Critical illness plan covers life-threatening diseases. Insurers cover more than 20 diseases under the critical illness plan. Some of these are cancer, coronary artery bypass surgery, heart attack, stroke, kidney failure, aorta surgery, heart valve replacement, major organ transplant and paralysis.
The insured will be entitled to get the lump sum amount on diagnosis of any of the critical illness from the predetermined list.
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Under a cashless health insurance plan, an insurer directly settles the claim amount with the hospital. The main purpose of providing cashless facility is to make sure that you (insured), does not incur any out of pocket expenses. Insured can avail cashless benefit only if he is admitted to the network hospitals.
You can enjoy cashless facility by filling out a pre-authorization form and displaying the health insurance card.
Payment made towards health insurance premium is eligible for deduction under section 80D. Individuals less than 60 years can claim deduction up to Rs 25,000 a year on the health insurance premium paid for themselves, spouse and dependent children. One can also claim deduction up to Rs 25,000 a year, for the premium paid towards parents health insurance plans.
If your parents are senior citizens, you can claim a deduction on health insurance plan up to Rs 30,000 a year.
Health insurance provided by employers are not suitable for individual medical needs and also you won't be given a large sum assured. The main disadvantage of depending on group health insurance is you will be left uninsured, if you lose or change your job. So make sure you are not underinsured by availing separate health insurance along with the insurance provided by your employer. Be Wise, Get Rich.
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