Here are how health insurance policies help you secure your savings:
1. Financial Safeguard
Insurance has the power to save and protect your wealth. If you're one of those people who would rather spend money on activities than on healthcare, then it's time for you to consider buying health insurance. Accidents or health conditions might wind up costing a significant amount of money and burning out your funds due to healthcare inflation. The high costs of health care pose several problems for our society as a whole. High fees can lead to you burning through your cash or spending more than you have. If the fees are really high, you may be forced to borrow cash on credit or from relatives and friends to cover them, putting you in debt. However, with health insurance, these out-of-pocket payments are considerably decreased because your insurer will cover the majority of medical bills by offering a guaranteed2 payout when you file a claim, keeping your savings untouched.
2. Medical Expenses are Covered
Health insurance is not a luxury, but a necessity. Health insurance is an investment that gives you peace of mind. It protects you from big financial losses and has a variety of coverage options depending on your needs. The coverage of health insurance includes more than simply hospitalisation and accidents. It includes a diverse range of medical bills, including serious diseases, common illnesses, mental care, maternity fees, ambulance costs, alternative therapies, post-hospitalization expenditures, and even routine yearly health exams. In any of these instances, you will be financially protected in the event of medical bills.
3. Cashless Claims
How do you get hospital bills settled if you have health insurance? This is a question that many people ask when they're dealing with such an issue. The answer involves cashless claims. Health insurance claims can be divided into 2 broad types – cashless and reimbursement. With a health insurance cashless claim, the insured individual can get admitted at any network hospital without having to pay anything out of their pocket (aside from any voluntary or non-voluntary deductible or co-pay amount mentioned in the policy), because the insurer will settle the hospital bills directly. You won't have to pay anything upfront, so your funds will be safe.
4. No-Claim Bonus
If you do not submit any health insurance claims throughout a policy year, you will get a cumulative bonus, often known as a no-claim bonus. This bonus is a monetary benefit, such as a reduction in your premium amount for the following policy year or sometimes, it is a rise in the sum insured amount with no rise in your premium amount. Either way, you may receive the same coverage for less cost, or even more coverage for the same price, resulting in an amazing opportunity to save money.
5. Free Annual HealthCare Tests
There is no doubt that health care is one of the main factors which determine how long we live. Given that age, people can suffer from different diseases or illnesses. Therefore, it's important for every individual to have annual medical check-ups. However, these check-ups are usually expensive, and if you are not aware of your health, then it could cost you in the longer term. When you have medical insurance, you usually get free yearly health checks. Going for such check-ups may ensure that you are conscious of your healthcare, as well as uncover health concerns that might otherwise go unreported.
Blood sugar level tests for diabetes, mammograms for the detection of breast cancer, and pap smears for the detection of cervical cancer are all routine testing. Early detection of any health concerns can be critical in preventing or promptly treating the diseases, potentially saving a great deal of money in eventual healthcare bills.
6. Tax Breaks
Under Section 80D of the Income Tax Act, policyholders of health insurance plans can get tax deductions on their health insurance premiums. The limit is set to INR 25,000 for individuals under the age of 60 years, while for individuals over that age limit, the same threshold is INR 50,000. Both instances include an INR 5,000 tax break for preventive healthcare check-ups.