8 Things you Don’t Know About Health Insurance

You can be leading a healthy lifestyle – exercising every morning and consuming a healthy diet, but it still won’t make you immune to illnesses. Now, of course, a healthy lifestyle does help keep diseases at bay, but life is uncertain, and you have to be prepared for any uncertainty it can bring to your corridor. So, whether it be critical illnesses or accidents, you have to be prepared for them if and when they come. 

Health insurance is the need of the hour – whether you are in your 20s or your 30s. But if it’s your first time purchasing health insurance, it’s only natural to be unaware of certain things. Furthermore, if you are a business owner thinking about purchasing business health insurance then there are many advantages that come with it. From access to the highest standards of healthcare to financial protection from any unexpected medical costs. There are also some common misconceptions about health insurance that you need to be enlightened about.

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Thus, here’s a beginner’s guide acquainting with essential facts about health insurance that you didn’t know before. 

Things you Didn’t Know About Health Insurance 

Here are some of the points you didn’t know about health insurance:

1. Health Insurance Doesn’t Cover Cosmetic or Dental Procedures: 

Heading to the dentist to get metal braces? Brace yourself because health insurance won’t provide for the treatment if you think that. Much to the surprise of many, cosmetic and dental procedures are not covered by a health insurance policy. Health insurance only covers essential treatments and procedures that can affect a person’s physical well-being. 

In addition to cosmetic and dental procedures, there are several more exclusions in a health insurance policy. These include pregnancy-related expenses, hearing and vision procedures, and pre-existing medical conditions. 

2. Health Insurance Now Covers Mental Health: 

With the growing awareness about mental health, health insurance companies are now covering mental health issues. This change came after the recent circular issued by IRDAI: 

“All insurance products shall cover mental illness and comply with the provisions of the MHC Act, 2017, without any deviation. Insurers are requested to confirm compliance before October 31, 2022,” 

As per this circular, IRDAI has made it compulsory for all health insurance policies to include mental illnesses in accordance with the regulations of the Mental Healthcare Act 2017.

3. Health Insurance Doesn’t Pay 100% of the Medical Bills: 

If you are under the assumption that health insurance would cover 100% of the medical bills, you are mistaken. Health insurance policies have a co-payment clause which determines the proportion of payment between the health insurance company and the policyholder. 

For instance, a health insurance company may have a co-payment clause wherein the 90% of the amount would be paid by the health insurance company, and the remaining 10% would be paid by the policyholder. This ratio can vary according to the health insurance company. 

4. You Can Save Tax on Health Insurance Premiums: 

To encourage individuals to buy health insurance, the Government of India has introduced certain tax benefits applicable under Section 80D. As per the section, the premium paid on health insurance is tax-deductible to a limit. 

5. You can Get Cashless Hospitalisation:

Paying hospital bills requires liquidity and endless formalities, which may be an obstruction or inconvenience for most people. However, with the cashless hospitalisation feature, you can avoid all that. The hospital bill would be directly settled between the health insurance company and the policyholder. You wouldn’t need to meddle in between, saving from the inconvenience and hassle. 

6. Health Insurance Also Covers Pre and Post Hospitalisation Expenses: 

Apart from covering expenses incurred during hospitalisation, health insurance also covers expenses incurred prior to and post-hospitalisation. These can include prescription fees, lab tests, medicines and so on. 

7. Health Insurance Can Also Provide Free Health Check-Ups: 

Health check-ups are necessary to ensure you are in the best of your health. As some individuals refrain from getting regular medical check-ups because of the high cost, some health insurance companies provide free health check-ups once a year. However, it depends on the health insurance company if they provide this feature in their health insurance plans. 

8. You Can Buy Additional Riders to Extend your Range of Benefits: 

Health insurance plans also give you the option of buying additional riders. These riders might come at a nominal charge but can help you save more in the long run. Although these riders vary from company to company, some of the most common ones include critical illness insurance, waiver of premium and accidental death benefit. 

The Bottom Line: 

Health insurance plans are your go-to way of maintaining your financial position in the face of medical emergencies. Now that you know all the relevant things about health insurance plans, we believe you are all set to buy your first health insurance policy!

So, what are you waiting for? Invest in the best health insurance plans to protect your financial stance and provide yourself and your family with the best medical treatment possible.