Top 10 Benefits of Health Insurance

12:00 pm 6 Feb, 2013


Accidents and diseases come uninvited. The risk of bearing heavy medical expenses in future is easily eliminated by signing up for a health insurance policy. Health insurance, therefore, can protect you and your family members against unexpected and untimely medical expenses. But not all health insurance policies are the same. Depending upon the premium, insurer, exclusions, inclusions and other technicalities, each policy provides distinct types of benefits. Nevertheless, they are beneficial. Here is the list of 10 benefits of health insurance.

10. Peace of mind:

The best way to overcome the fear associated with the thought of a financial devastation in the event of sickness or accident is to buy health insurance. A large chunk of medical costs is covered by a health insurance plan and, therefore, you can have complete peace of mind when you fell assured that everyone in your family will receive the treatment when they need it the most.

Health insurance gives total peace of mind

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9. Health check-up:

Many insurance companies offer free health check-ups to their customers. These health check-ups are usually provided once annually or bi-annually. Since insurance companies have to pay for your future medical expenses, they take all steps necessary to offer preventive care. Various medical issues, when detected in early stages, are treated quickly and effectively than those diagnosed at a late stage.

Health check-up

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8. Tax benefit:

A large number of professionals buy health insurance primarily to avail of tax benefits. Several products offered by health insurance companies are eligible for tax benefits. While the type and size of tax deduction varies in different countries, nearly all democracies in the world waive the Medicare Levy Surcharge or MLS when you buy health insurance. Tax deductions help the middle class in going for the medical insurance.

Tax benefit

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7. Allowance for the attendant:


This allowance is particularly helpful in case an adult has to stay at the hospital with a child. Health insurance products for children below the age of 12 years generally offer this type of coverage. The adult who accompanies the child at the hospital gets a daily allowance from the insurance company. In most cases, the number of days for which an insurance company gives the attendant allowance, is fixed.

Health insurance offers allowance for the attendant

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6. Alternative treatment:

Many health insurance products now cover alternative treatments, too; however, regulations concerning health insurance policies and alternative treatments vary a lot in different countries. In India, for example, many companies cover up to 25 percent of the total money spent on alternative treatments.

Alternative treatment

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5. Coverage for domiciliary treatment:

Not many people are aware of the fact that insurance companies also offer extra coverage for domiciliary treatment. With such an extended coverage, you can claim the cost of medicines or procedures even if you stay back at home during the course of the treatment. Insurance companies generally put an upper limit on the total amount to be spent and number of days under this plan.

Health insurance provides coverage for domiciliary treatment

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4. Protecting financial future:

It is true that you need to shell out a huge sum of money in the long term to buy a good health insurance policy. The financial protection against numerous diseases and unpredictable threats to health or physical well being, however, is a great return on investment. Health care costs can leave a person bankrupt within few days. With a health insurance plan, you can be assured of the fact that your financial condition won’t be threatened by an illness.

Protecting financial future

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3. Recuperating benefit:

In case you’re hospitalized for a long time, you can avail the convalescence benefit also called recuperating benefit. A health insurance policy with this type of coverage pays your recovery expenses. For example, if you are unable to work for about a week due to illness, the insurance company will reimburse the money you lose because of your absence from work.

Recuperating benefit

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2. Cash allowance when hospitalized:

Several health insurance policies provide daily hospital cash allowance if you’re hospitalized. This allowance covers all expenses including food, refreshments and transportation costs. Combined together, all such expenses can pile up to a substantial amount. If your policy has a provision for fixed or per-day cash allowance, you need not produce any bills or documentation to support your claim.

Cash allowance when hospitalized

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1. Lump sum in the event of a serious illness:


Patients suffering from serious medical conditions need to shell out thousands of dollars on medicines and expensive procedures. Many health insurance policies cover critical illnesses. There are, however, some exceptions and you need to go through the policy document to understand what’s really being offered. Expensive medical procedures such as Chemotherapy or Dialysis are usually out of a person’s financial reach unless he or she has enough cash at bank. With health insurance, it is possible to get a lump sum amount for such expensive procedures.

Health insurance covers lump sum in the event of a serious illness

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