‘I am young, fit and healthy. I don’t need health insurance’- is the greatest myth of all time. Considering the rise in lifestyle related diseases and skyrocketing medical costs, buying a health policy has become a necessity in today’s time. Medical emergencies can occur anytime and health insurance can help you take care of your medical expenses, thereby preventing you from liquidating your savings or availing a loan in case of an emergency. Here we explain to you what health insurance is and its benefits.
What is health insurance?
To put it simply, health insurance is a type of insurance policy that provides you coverage against medical expenses arising due to accident, injury or an illness. The coverage for this type of insurance is provided in exchange of premium which has to be paid by the policyholder annually or on a monthly basis.
Health Insurance Benefits
A standard health insurance policy offers coverage for hospitalization expenses in case if the policyholder is hospitalised due to an accident, injury or any critical illness such as cancer, kidney failure, etc.
Pre and post hospitalisation expenses
Health insurance offers coverage for pre hospitalisation expenses such as doctor’s fee, medical reports, etc. Post hospitalisation expenses such as routine check ups, medication costs, injections, etc. are also covered. Pre and post hospitalisation expenses are usually covered for a period of 30 to 60 days.
Coverage against mental illnesses
This includes coverage for expenses related to mental illnesses such as acute depression, bipolar disorder, anxiety disorder, etc. Mental illness is covered under health insurance after a waiting period of 2-4 years and the extent of coverage varies from insurer to insurer.
Maternity and newborn coverage
Few health insurance companies also offer coverage for maternity expenses i.e. both normal and caesarean delivery are covered upto a specific cost after a waiting period of 2-4 years.
This relates to treatment at home in case if the hospital beds are unavailable or if the policyholder is in such a state that he/she cannot be taken to the hospital.
Free health check up
Another benefit of availing a health insurance policy is that it offers free health check up to policyholders in case they make no claim during a policy year.
No claim bonus
With free health check for making no claim, policyholder can also enjoy no claim bonus which is offered in the form of discount in premium or increase in sum insured which can go up to 50% for five claim free years.
Organ donation charges
Policyholders can claim against medical bills accrued due to organ donation. Donation expenses such as pre and post hospitalisation expenses, organ screening, surgery charges, post surgery monitoring, etc. are covered.
Health insurance also offers you tax benefits up to Rs. 1 lakh under section 80(D) of the Income Tax Act, 1961.
Considering the above benefits offered under health insurance, it is a must to purchase this type of policy to safeguard your financial future and get coverage for medical expenses.