Health Insurance and its Benefits

“Health is wealth” is a quite common phrase, but when is the last time we remembered this phrase?!! I am sure most of your answers would be the last time they had fallen sick. Very true, we understand the true meaning of the expression only when we fall sick or hospitalized resulting in medical expenses.

According to the Health Insurance Association of America, health insurance is defined as “coverage that provides for the payments of benefits as a result of sickness or injury. Includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment”.  To simplify this definition, it is primarily a contract or an agreement between you and your insurance company. You choose a suitable plan, and the company agrees to pay part of your medical costs when you get sick or hurt. Well, you would be surely surprised to know the other benefits!! I have tried to jot down some of them.

1. Benefits to Each Member of the Family


The countdown ends on this last benefit, which I am sure you all would be glad to know. Though health insurance policies vary from company to company, there are broadly two types to be classified- single-user plan and family plan. Plans for single-user ensure benefits to the insured person only. On the other hand, family plan as the name suggests covers all the family members equally. It is also cheaper to have a family plan against multiple single-user plans. Besides it has higher coverage rates that are shared among everyone in the family.

2. Risk Cover


Life today is full of uncertainties. To be true, we are helpless when it comes to the nature. Health insurance ensures a healthy life to your loved ones even after the primary breadwinner is lost or becomes disabled. Well, the emotional loss remains to exist but the financial crisis can be overcome.

3. Outpatient Care


We generally assume that the scope of health insurance is limited to hospitalization or daycare procedures. Well, this is the half side of the story; the other half says that several policies offer outpatient care. That is, treatment undergone at home as per doctor’s advice. The doctor’s prescription, bills suffice you to claim the coverage in such cases.

4. Loans


Well, what can be better than this!, Being a policy holder you have your health insured, the above mentioned benefits, plus you have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.

5. Gives you a Peace of Mind


As we all know, the health insurance protects you against the severe cash crunch that you face after an unexpected medical condition. Thus it gives you a greater peace of mind about the possible consequences of such circumstances. It’s better to relax with health insurance than to have a stressful tomorrow.

6. Daily Hospital Cash Allowance


There is this belief in common mass that these policies cover only for hospitalization expenses. However, many health policies foot the bill for associated expenses for example, expenses incurred on food, refreshments or transportation charges incurred while commuting between hospital and home. These costs eventually add up to become a substantial amount and may loosen the wallet for a non-policy holder.

7.Tax benefits


In order to promote health insurance in India, the government has introduced impressive tax benefits on health insurance under sec. 80D of the IT Act on premium paid for a health insurance policy. Thus you can relax more with your health insured on one side and the tax benefits on the other.

8. Protection against Rising Health Expenses


There has been a drastic increase in incidences of lifestyle diseases. Public healthcare facilities are no more sufficient to meet the healthcare requirements of the entire population. Patients have to rely more or less on the expensive private healthcare services. Moreover, in certain critical illnesses, the cost of treatment can be heavy on your pockets. With the rising inflation, your saving also may not support you fully. In those critical situations, health insurance turns to be a life-saver.

9. Improves Health and Wellness


Health insurance not only takes care of your financial need during medical emergencies but help you and your family to stay fit and healthy. The health insurance plans offer benefits and resources that include coverage for annual check-ups and screenings, 24 hour nurse hotlines, discounts on exercise programs and alternative care treatments.

10. Builds the Habit of Thrift


Being a health insurance policy holder, you are bound to pay certain amount at some regular intervals depending on the terms of your contract. Thus it builds the habit of long term savings. You tend to plan your expenses more economically and wisely.

So, we saw how health insurance has become indispensable requirement of life. Now, I hope those who have not done it yet, get your health insured because you need it not just for you but for your family.


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