Things to know why you need medical insurance – healthtips24

Medical insurance, a type of medical expense insurance coverage, is now a necessity. Under a medical insurance policy, the insurer reimburses or pays the care provider directly for the costs incurred by the policyholder in respect of illness and injury. Individuals ‘ subscription to a medical insurance plan guarantees compensation for medical expenses in unforeseen events that affect their savings and damage their financial objectives. Although investment in medical insurance also gives the customer income tax benefits, a person should refrain from purchasing a policy solely for his income tax benefits, say experts. It is important to have a medical insurance policy, but a thorough understanding of its suitability maximizes the results.

Things to know why you need medical insurance - healthtips24
It is not only an option but also a necessity to purchase a health insurance plan. To obtain the best medical facilities in time of need and without burning a hole in the pocket, medical insurance must be provided, say experts. In order to prepare for the possibility of a medical emergency, it is also advisable to plan health care early in life. It goes without saying that it is important to allocate a portion of the savings to medical insurance.

Here are the 10 reasons you need to know why medical insurance is so important today:

Financial Stabilization

Expenditures on medical emergencies can lead to severe financial distress. The purchase of a medical insurance plan as required ensures financial stability in the event. For example, savings to meet one’s retirement goals or to educate children can be a major hit in medical emergencies.

Facility without cash

Today, many insurers offer their customers a cashless facility, in which the insurance company cooperates with different hospital networks. Typically, the costs of treatment incurred in the network assigned to the policy are paid directly by the insurer, without requiring the policyholder to spend from his pocket under certain conditions. This feature alone can be very effective in protecting savings for your life’s events.

Expenses for Hospitalization

Hospitalization costs, particularly in the private sector, range from physician fees and medical tests to medicine costs. The ever- increasing demand for medical facilities has led to higher costs for the end user. A good medical insurance policy normally covers costs for consulting fees for the doctor and costs for medical tests and hospitalization.

Coverage of Pre and post-hospitalisation

Today, most insurers cover the costs of pre and post-hospitalization in their individual and group medical insurance plan. Pre-hospitalization costs refer to the costs incurred before a patient is transferred to a hospital for treatment, including medical tests and pre-admission checks. Similar costs associated with monitoring and testing are incurred after the patient is discharged from the institution. Such medical costs are referred to as post-hospitalization costs.

Charges of Transportation

Many insurance companies also cover the amount paid to the ambulance for the transport of the insured person. Before you buy a medical insurance plan, say experts, you should check the components of the coverage provided by the insurer in detail.

Medical Checkup

Some insurance policies can even offer the option of health checks.

Treatment Quality

In some cases, a person may have to compromise the treatment plan due to a lack of funds. By choosing the most appropriate medical insurance plan according to your needs and financial situation, the policyholder can guarantee maximum health protection, say experts.

Reimbursement

Typically, in the event of a medical emergency leading to the admission of the insured to a hospital outside the insurer’s network, the policyholder must make all payments against received treatment. In such a scenario, the insurer compensates the policyholder for eligible expenses under the plan when the required documentation is submitted. This is known as refund. In this mode, the policy holder must bear the expense burden at least at first and subsequently be paid for the eligible expenses covered by the policy.

Medical Insurance Plan Type

Today, insurance policies come in all sizes and forms and offer the customer a wide range of facilities. This is also why it is important to learn about all the features of a medical insurance policy before selecting a medical insurance product, say experts.

Benefit of Tax

The medical insurance premium is eligible for an exemption from income tax under Section 80D of the Income Tax Act. Medical insurance can also often be included as a means of attracting quality employees in employer benefits packages. The medical insurance premium costs are deductible to the payer and the benefits are tax- free.

The need for medical insurance can not be underestimated. Increasing medical costs can affect savings over the life of only one major medical emergency. Medical insurance can contribute to these costs. There are several ways people can get medical insurance. A person can either pay for his or her own insurance or receive medical insurance in a job package. You should read the contract carefully and understand all the terms and conditions that experts advise prior to choosing a health program.

Insurance companies like IFFCO Tokyo offer a range of medical and other insurance products.