InvestorQ : Are there any benefits of taking a healthcare insurance other than the financial protection it provides in case of medical emergencies?
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Are there any benefits of taking a healthcare insurance other than the financial protection it provides in case of medical emergencies?

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Sadaf Khan answered.
3 years ago
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Health insurance is a type of insurance coverage that covers the cost of an insured individual’s (policyholder’s) medical and surgical expenses. However, a health insurance doesn’t only cover the policyholder’s medical expenses. Its added benefits are:
- Tax benefits: One of the biggest positive of buying a health insurance is that it can help one’s taxable income. This is because all health insurance policyholders enjoy tax benefits for the premiums paid towards their insurance plans under Section 80D of the Income Tax Act, 1961. If you are filing taxes and are looking for ways to reduce the tax amount you pay, invest in a health insurance plan today.
- No-claim bonus: No-claim bonus refers to the percentage of discount that is given to a policyholder from the insurance company for every year that the policyholder makes no claims. This works in a way to dissuade policyholders from making petty medical claims. The no-claim bonus can be given in two ways: as a discount on the premium payable while renewing the policy or by increasing the sum assured amount. Thus, when renewing a health insurance policy, it is very important to check if you have received your no-claim bonus.
- Family/loyalty discounts: Family and loyalty discounts are given to a policyholder who enrols a family member or another person in the health insurance plan. This is a form of a reward paid by the insurance company to the policyholder for referring customers, and more clients to them. The policyholder also benefits from the discount given as insurers usually give 5-10% discount on the premium which is payable by the new member.
- 24/7 customer support: Understanding financial documents isn’t easy and insurance policy documents take the cake in this regard. This is why, most people find insurance plans to be complicated. However, to help people understand their health insurance plans better and to answer queries if any, all health insurance companies provide 24/7 customer service.
- Cashless facility: India is undergoing a digital drive and so is our healthcare and insurance system. Gone are the days when you’d have to carry hard cash to pay your medical bills. In case of hospitalisation, when you have a health insurance plan, the insurance company will settle the bill directly with the hospital. This way the onus of paying the medical bills doesn’t fall on the insured individual. This cashless facility helps people significantly as they don’t have to arrange for funds during an emergency medical situation.
- Online application and renewal facilities: Insurance providers these days have an impressive online presence. They not only keep their websites updated at all times, they also help you get in touch with them in order to solve your queries, gain new customers, launch new insurance products, etc. As a customer, you will be able to buy or renew your health insurance plan within few seconds from the comfort of your home.
- Free check-ups: In order to encourage their policyholders to lead healthy lives, most insurance providers also offer free medical check-up facility once in a while. Based on the type of policy that a policyholder holds, the insurance company might also provide the policyholder with a master health check-up.
- Claim updates and quick settlements: Due to competition, the quality of customer service in the health insurance industry has increased by leaps and bounds. Insurance companies treat their customers professionally, and even keep them updated about the status of their claims via phone call/SMS/emails. Also, the claim settlement ratio, that is the number of claims received against the number of claims settled, has gone up in the last few years. The claim settlement ratio of an insurer is very important as it indicates the number of claims that an insurer has rejected versus the number of claims the insurer has settled.
- Portability: Health insurance companies provide policyholders the benefit of portability. A policyholder will be allowed to switch from one insurance company to another without compromising on the waiting period or any other features and benefits which were available with the previous insurer.
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