Health Insurance – Pros & Cons

Importance of Medical Insurance

Medical insurance is very important in every one’s life, and everybody should know the pro and cons before purchasing a medical insurance. Health insurances are vital because they cover a major portion of our hospital expenses and do not affect our finances during tough times.

Benefits of Medical Insurance Policy

• Tax Benefits: By purchasing a medical insurance, we are entitled for a tax deduction for the premium paid under the section 80D of the Income-tax Act, 1961.
• The biggest advantage of buying a medical insurance is that it protects our savings and assets during emergencies. It covers a major amount of our expenses during hospitalization.
• By having a medical insurance, we can get admitted to any hospital without paying any token advance amount and we can pursue our treatment without any financial worries.
• There is also an option provided by the insurance companies – the beneficiary can also pay the medical bills and go for reimbursement by submitting the required documents.
• Having a medical insurance lessens our worries about medical expenses and gives the patient the option to choose the best hospital and best care for the family. By choosing the best care, the outcome of the treatment is also good and it helps the individual to become normal and lead a healthy life ASAP.
• In medical insurance, the insurance companies allow the customers to transfer their existing medical insurance to another insurance company of their wish. By opting for this benefit, the customers are given the flexibility to choose better options like premium/coverage benefits, etc.
• By opting for a comprehensive coverage plan, it covers inpatient/outpatient/pre- and post-hospitalization/ambulance/day-care expenses.

Disadvantages of Medical Insurance Policy

• One of the biggest disadvantages in medical insurance is pre-existing exclusions where the customers have to undergo a certain waiting period for certain ailments.
• Most of the insurance companies have a bigger co-pay for senior citizens and they also end up paying higher premium for their policies.
• The waiting period of 30 days is applicable for all medical insurance policies – they have to wait for claiming medical expenses. However, the waiting period for accident cases is expelled in medical insurance.
• Another major disadvantage in medical insurance is that there is a specific waiting period for cataract, knee replacement and hernias. This waiting period may vary from one insurance company to another.