Reimburses medical expenses: Generally, if you don't receive treatment from
the hospital within the insurer’s chain then you might have to consider the option
of reimbursement. This releases you from the financial burden of the huge medical
Lumpsum payment for critical illness: Most of the insurers generally provide
a lumpsum amount if the insured is critically ill or has acquired any form of major
disease. The amount received can be used for major surgeries, transplants etc. The
premium amount for the policy is also waived off if the insured person is critically
Tax benefit: While protecting your life under health insurance, saving tax
might not be your priority but certainly enables you to save the extra pennies.
Under section 80D one can get a deduction of ₹25,000 if you pay for your parents
who are not senior citizens but the amount may go to ₹30,000 if your parents are
How does Health Insurance work?
The mathematics involved with health plan is simple and hassle free. A health plan
covers all your medical and hospital expenses. It is always better to be safe than
sorry. So, it is wise to secure your health in an hour of need.
Here is simple way in which this policy works:
If you buy a health insurance policy from XYZ insurer and have an instance where
you get hospitalized, then if the hospital is within the insurer’s network you are
entitled to get cashless treatment. However, if the hospital is not within the network
then you need to submit the documents related to the treatment and thus the insuring
company reimburses the amount.