Personal health insurance is also known as retail health insurance which can be taken on an individual as well as on a family basis. The sum insured can be floater or non floater where in floater the sum insured under the policy can be utilised by any of the family members without any restrictions whereas in case of non floater each member would have sum insured to themselves which cannot be transferred to the other member and has to be utilised by the same person only.
Here are the benefits of having a personal health insurance plan:-
- Medical expenses: Medical expenses for any treatment nowadays are as low as ₹2 lakhs and can go up to crores for serious illnesses depending on the hospital. The medical expenses can be covered under a health insurance policy for a certain limit as selected by the customer. Having a health insurance policy can benefit you when you want to go for hospitalization as you need not pay the expenses from your pocket. The personal health insurance policy would pay for the medical expenses incurred due to hospitalization resulting from an Illness or disease.
- Tax benefits: The other advantage of taking a personal health insurance policy is you can avail tax benefits. The premiums paid towards the health insurance are eligible for exemption under the Income tax act. Health insurance premiums paid towards Self, Spouse, children and dependent parents are eligible for income tax deduction. The maximum deduction that can be claimed under this is ₹1lakh for the health insurance premium paid towards senior citizens and senior citizen parents. The tax exemption is available under the Section 80D of the income tax act.
- Cashless claim: The other benefit of having a health insurance policy is the cashless claim settlement service it offers. Cashless claim settlement is where the insurance company would directly settle the claim amount with the hospital without the intervention of the insured customer. Having a health insurance policy can save you a great deal of money, reduce the stress of arranging funds in case of hospitalization.
- Rising health care costs: The rising health care costs stresses the need to have a personal health insurance policy. Health insurance policy would act as a cushion for the rising health care costs as the medical expenses would be paid by the insurance company in case of hospitalization in return for a nominal amount of premium paid to the insurance company. The rising health care costs would not affect a person having a health insurance plan as the expenses would be paid by the personal health insurance policy up to the sum insured limit.
- No claim bonus: No claim bonus is a form of incentive paid to the insured customer for not making a claim during the previous year. The no claim bonus is given as a percentage increase of the sum insured. Getting no claim bonus would increase the sum insured of the insured at no extra cost.