Although you can work very hard to achieve your financial goals, an unforeseen health problem could significantly affect your trip. If you are the only one who earns in the family, the financial stress could be immense even if someone in your family is experiencing a medical emergency.
The rising cost of private healthcare in the country means that hospitalization can create a huge hole in your pocket and also significantly affect your financial health. Buying health insurance is a smart way to protect your finances. When purchasing health insurance, you agree with the insurer that the insurer agrees to compensate for medical expenses.
To help you make an informed decision, here are some key advantages and disadvantages of health insurance.
Benefits of purchasing health insurance
- It protects you financially
This is one of the biggest benefits of purchasing health insurance. You could save and invest in things like buying a property or raising a child, but you or someone in your family who is experiencing a medical emergency may require you to liquidate your assets.
If you still can’t manage your expenses, you can also borrow money from family, friends or take out a loan. All of these things can greatly affect your current financial health, as well as your long-term goals. Having health insurance can help you avoid such outcomes due to the rising costs of quality health care.
Availability of options
Gone are the days of insurers offering only basic health insurance. For example, most insurers now offer individual policies and floating family plans. You can protect yourself with an individual plan, but with a floating family plan, you can ensure the health of your entire family.
Health insurance is a necessity. This is because if you have a mishap, it will help you cover all your expenses. If you choose the cost of the best Medicare Part D plans, all drug costs and various health plans are covered.
Cashless benefits are benefits that can be obtained by purchasing health insurance. Today, most major insurers have an extensive list of hospitals on the internet across the country. In case you suffer from a health problem and are admitted to one of the hospitals on the network, most of the time you will be able to take advantage of the cashless admission.
This service eliminates the traditional claims reimbursement process in which you were first asked to pay hospital expenses and then reimbursed by the insurer. With cashless treatment, the insurer will pay the medical bills directly to the hospital. Therefore, you will not be asked to pay for the high costs of the treatment out of your pocket. If you are admitted to an off-network hospital, you can use the claims compensation service here.
Bad Debt Bonus (NCB)
Health insurance plans also include a bonus element known as NCB. Health plans are usually renewed annually by paying the insurance premium. But if you don’t submit any applications for the full year, you will be eligible for NCB. This BCN benefit is also available with vehicle insurance plans. However, there is a big difference between NCB auto insurance and health insurance.
But with health insurance, the NCB offers you a higher guaranteed sum for the same premium amount. So, if your health insurance plan coverage is Rs. 5 lakh and you do not file any claims in one year, the coverage will increase to Rs. 5.5 lakh (10% coverage) in the next year without any increase in the premium amount.
A large number of people in India end up purchasing health insurance simply because of the tax advantage it offers. While the tax advantage shouldn’t be the reason you invest in health insurance, it’s still a significant advantage. Under Section 80D of the IT Act, a person under the age of 60 can apply for a tax deduction of up to Rs. 25,000 for premiums paid against a health insurance policy. If you are over 60, the deduction limit is up to Rs. 50,000.
If you reside in San Bernardino, you should check out the medicare advantage plans San Bernardino so that you can be open to the extra benefits of health insurance.
Disadvantages of Health Insurance
With a large number of the above advantages, health insurance also has some disadvantages. Like-
- The rate of premium increases with time and age.
- Most health insurance companies also have a waiting period of up to 23 years for previous illnesses.
- To avoid false claims, many insurance policies also include an additional payment clause or deductible. If the policy you purchased contains a ticket clause, you will need to share your medical expenses with your insurance company.
Now that you know the advantages and disadvantages of health insurance, the decision shouldn’t be difficult for you. While there are some downsides/disadvantages, you can see why health insurance is a must for everyone, regardless of age. Basically, the younger you are when you buy health insurance, the more worthy it will be.
So browse through the different types of health insurance plans to choose the one that best suits your needs. Make sure you choose a feature-rich policy from a reputable insurance provider so that you can best protect your health and enjoy the advantages as well.