How to Make the Most Out of Health Insurance Plans ?
Like every other insurance policy, health insurance is a service you pay for but hope that you will never need. It is basically a protection cover for unpredictable and unforeseen medical emergencies that come up in an individual’s life.
We live in an age where our lifestyle has left us prone to unpredictable medical conditions and illnesses. To add to the agony, healthcare costs are rising at an alarming rate. To hedge the losses due to such emergencies, a health insurance policy is but a necessity. But, buying a policy without understanding the working of it is doing more harm than good. Most consumers seem to settle for any type of Health Insurance policy. In fact, very few go beyond the policy offered to them by their work organisation. However, to make the most out of a health insurance plan, it is vital that you understand different benefits associated with different types of policies. Here is a look at some of the key advantages and how you can utilize them to meet the best of your needs. Read on!
Opt for a Higher Deductible
The deductible is the amount you pay out of your own pocket before your insurance company steps in. As a layman, it sounds right to select a low deductible amount so as to pay as little as you can during a medical emergency. However, if you go by the expert’s advice, opting for the higher deductible amount is always a better alternative. Why? The higher the amount of deductible, the lower will be your premium costs. This way you save a good deal of money on your premium payouts.
Mediclaim vs Health Insurance?
The two terms are often used interchangeably. However, there are some significant differences between them. The benefits of Mediclaim policy are limited to hospitalisation expenses. However, a Health Insurance policy provides a comprehensive cover that includes cover for critical illnesses, pre and post hospitalisation and much more. Although the comprehensive cover costs more than that of basic cover, it makes sense to avail a broader coverage for a better protection of you and your loved ones.
Individual vs Group Policies
Group Policies are nothing but the policies given to you by your employer. The more people covered under the policy, the better price you are likely to receive. However, the cover provided under such policies is often insufficient for you to be able to meet ever escalating medical care prices. Thus, opting for individual health insurance plan will go a long way in helping you to pay for medical emergencies. Not only such plans cater to all your medical needs but also ensure that you never fall into a debt like situation.
Health Insurance top up Plans Benefits
Your budgets only allow you to avail a basic health cover. But, what if you get a promotion and you are now able to afford a wider health coverage? Will you buy another policy and go through the process all over again? Well, to simplify things,health insurance companies have introduced Top Ups Plans. The main objective of these top ups is to enhance your health insurance coverage. Opting for top ups will save you money. Also, you don’t have to go through the hassle of medical scrutiny again.
There is more to health insurance than covering up your medical care needs. A health insurance plan also acts as an efficient tax saving tool. The policyholder is eligible to claim deductions under section 80 D of Income Tax Act. As per Section 80D of the Income tax act, the premium paid towards a health insurance plan is deductible from the taxable income. An individual is allowed to claim a deduction of Rs 15,000 and is extendable to Rs 20,000 for senior citizens.
The bottom line
Before you agree to sign on those papers, ensure that you are well informed about your policy. Look for a policy that best suits your needs and budgets rather than simply picking up a cover with the cheapest premium. You can make the most of your policy by simply understanding the working of it.