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12 Benefits of Health Insurance Plans in India

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Various Benefits of Health Insurance Plans in India

One can fall ill and get hospitalized any time. High hospitalization expenses can ruin financial life and dent your hard earned savings. One of the best ways to protect your savings from such unexpected hospital bills is having a health insurance plan. You might be single or married or married and have kids or in middle age or senior citizen, whatever stage it could be, health insurance is must. There are various benefits in health insurance plans. If you can understand them, you can take a plan at appropriate time and get benefitted. This article would provide various benefits available in Health Insurance Plans in India.

What is Health Insurance Plan?


Health insurance is a type of insurance where insurance company would cover the medical insurance for the individual arising due to medical emergency. In simple words, it is an agreement between insurance company and insured individual where insurance company would cover the medical expense of the insured individual.

Key Benefits of Health Insurance Plans


Now we understood the meaning of health insurance, let us go through various health insurance benefits.

#1 – Hospitalization Expenses


One of the major benefits of health insurance plan is that they cover hospitalization expenses.

In case of accident, all hospitalization expense is covered even if the policy is 1 day old. There is no waiting period in case of accident.

In case of any illness that requires hospitalization, these expenses are covered (atleast 24 hours hospitalization is required).

ICU Room rent is covered.

Room Rent with or without gap (based on the plan taken) is paid.

#2 – Pre and Post Hospitalization expenses


Generally, when someone falls ill, they undergo treatment and incur high expenses on diagnostics and medicines. If the situation is worse, they might get into hospital for quality treatment. Even after discharge, they might need to incur medical expenses for next 90 days period.

Medical insurance plans cover both pre and post hospitalization expenses for 30/90 days period depending on the insurance plan. This can help you to save money on diagnostic procedures and medicine costs.

#3 – Day Care Procedure Costs


When you are ill, there might be few diagnostic procedures to treat illness, however may not need hospitalization. Many health insurance plans now a days cover day care procedure costs which can help you to save from high medical bills without hospitalization.

#4 – Hospital Cash Benefits


Good olden days used to cover only medical expenses. However, when you are hospitalized, you might not go for work for few days or few weeks where there could be loss of pay or loss of business income. New age insurance plans offer hospital cash benefit. This feature helps to compensate a fixed amount per day as hospital cash benefit to insured individual. This amount is paid without any bills. One can utilize this for daily expenses, food, tea, snacks etc. up to 30 days of hospitalization.

#5 – Refill Sum Insured amount


These days health insurance plans are coming with unique feature where if sum insured is exhausted in a financial year due to hospitalization expenses, sum insured would automatically get refilled. Means you do not need to worry about sum insured. However, such features come with additional premiums.

#6 – Ambulance Expense Cover


Ambulance charges are very high in metro cities as well as in towns. If you take Hyderabad or Chennai, the ambulance charges are up to Rs 5,000 within city and higher amount if it is outside city. Health Insurance Policy helps you to cover these ambulance expenses in case of medical emergency.

#7 – No Claim Benefit (NCB)


Like there is no claim bonus (NCB) for motor insurance, there is no claim benefit (NCB) in health insurance plans. If there are no claims made in a financial year, there is no claim benefit passed on the insured by way of increasing sum assured. E.g. Mr. Mayur has taken health insurance plan for Rs 10 Lakhs. There is NCB of 10% per year. Mr. Mayur did not have any claims in a financial year. In this case, second year sum assured would be increased from 10 Lakhs to Rs 11 Lakhs without any additional premiums. This increased sum would help to cope up with increasing medical costs year on year.

#8 – Coverage for surgeries


Majority of health insurance plans cover all surgeries. Generally, surgery costs are very high and it can dent your financials if you do not have medical insurance. There are many health insurance policies which covers even for Bariatric surgeries too for obesity treatment.

#9 – Maternity Coverage


Health insurance plans come with maternity coverage which has waiting period of 2 years and it covers for 2 kids.

Individuals planning to get married or married couple who are planning to have kids in the next few years can consider a health insurance which can cover the maternity expenses and costs of pregnancy terminations. This can help to save large medical bills.

#10 – Ayush Cover


There could be hospitalization and need to go for alternative treatment procedures like Ayurveda, Siddha, Unani and Homeopathy.  Health insurance plans can cover all these Ayush treatments.

#11 – Free Annual Health Check-ups


Illness does not knock the door and come. This happens unexpectedly. Hence one should have periodical health check-ups to avoid unexpected illness. The good news is that some of the insurance companies are reimbursing the money spent on annual health check-ups during renewal of health policies. This could be win-win situation for both insurance company and life insured.

#12 – Income Tax Benefits


Health Insurance plans provide hospitalization expenses and several other benefits. At the same time, it would also provide income tax benefits u/s 80D. Below are the IT benefits for health insurance policy during the financial year.

Health Insurance for Self + Family – Rs 25,000

Health Insurance for Self  + Family  + Parents (< 60 years of age) = Rs 25,000 + Rs 25,000 = Rs 50,000

Health Insurance for Self  + Family  (< 60 years) + Sr. Citizen Parents = Rs 25,000 + Rs 50,000 = Rs 75,000

Health Insurance for Self  + Family  (eldest member is > 60 years) + Sr. Citizen Parents = Rs 50,000 + Rs 50,000 = Rs 100,000

Understanding various benefits of health insurance plans would help you to utilize them to the maximum extent.

Suresh KP

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