Health Insurance Benefits: 6 Advantages of Availing a Health Insurance Plan


Medically reviewed by

Bajaj Finserv Health

Aarogya Care

5 min read

Key Takeaways

  • Comprehensive coverage option is one of benefits of having health insurance
  • Buying health insurance gives you tax deductions under Section 80D of the IT Act
  • Health insurance benefits also include cashless treatment options

Medical emergencies are often unforeseen. They can cause a mental and financial strain on loved ones. In the current scenario, when medical expenses are continually increasing, investing in health insurance is paramount. These policies guarantee financial protection and peace of mind during unexpected medical situations. There are many benefits of health insurance. This includes coverage of pre-and post-hospitalization expenses, room rent or ICU charges, and even ambulance costs. However, these benefits vary for different policies and are based on the plan and sum assured. To finalize the ideal policy for your family, it helps to be familiar with different health insurance benefits. You must know how they are different from mediclaim benefits.

Learn about the crucial health insurance benefits in India.

Additional Read: Why is it important to Choose the Right Health Insurance Plans for a Family?health insurance benefits

Provides comprehensive coverage to tackle medical expenses 

Depending on the type of the policy availed, comprehensive coverage includes pre-and post-hospitalization expenses from a time period ranging between 30 to 60 days of hospitalization. This is one of the major benefits of having health insurance and covers the expenses related to hospitalization for a period of 24 hours at least. This includes charges related to room rent, ICU, and more.

Apart from this, any daycare procedure like cataracts or chemotherapy, which may not require you to get admitted, is also included. Some policies also offer coverage for domiciliary expenses. In this, you are treated for an illness at home rather than at the hospital. Other benefits of a health insurance policy include cover for costs related to ambulance services. However, it is best to check out the specific cover based on your chosen plan.

Offers cashless treatment to help manage hospital expenses easily 

When considering health insurance and its benefits, remember that ease of payment is a major factor that contributes to your peace of mind. One such feature is that of a cashless hospitalization facility. This helps you avail the best treatment without having to spend a single penny from your pocket. On choosing a suitable plan, the provider gives you a cashless card to show at the hospital in the network. This means that the insurer will settle your bill directly. However, this option is feasible only if the hospital you visit is a part of the insurer’s network hospital list. [1]

Gives tax benefits under Section 80D of the Income Tax Act 

Under Section 80D of the Income Tax Act, the health insurance premium you pay can be claimed as a tax-saving deduction. This is one of the primary benefits of health insurance in India. As an individual, you can claim up to Rs.25,000 if your health insurance covers you, your spouse, and your dependent children. Additionally, on availing of insurance for parents or family members over 60 years of age, you get a tax benefit of Rs.50,000.

Offers NCB or No Claim Bonus to the policyholder 

A No Claim Bonus is one of the unique medical insurance benefits you can access if you don’t claim during a particular policy year. This is also known as a cumulative bonus applicable to individual and family floater health insurance plans. It offers you a higher sum insured by 10-20% in the next policy year for the same premium. This makes for a great cover.

It gives the benefit of lifetime renewability 

With this benefit, you have the advantage of renewing your policy without any age limit or other restrictions. This is a boon for senior citizens, especially offering relief from a financial burden for any unexpected medical need.

Allows transfer of policy for better coverage  

A difficult claim settlement or the lack of your preferred hospitals in the network is problematic. This causes a conflict with your existing health plan. However, you can port your health insurance policy to another insurer. This move offers flexibility and freedom. You can choose a plan with better coverage, features, and even a lower premium.

How do health insurance benefits differ from Mediclaim advantages?

Mediclaim is a budget-friendly option to manage any medical emergency. However, this covers only hospitalization expenses. Plus, it requires you to be admitted to the hospital for at least 24 hours to avail of coverage. One of the crucial Mediclaim benefits is that it is cost-effective.  

The maximum sum availed in Mediclaim cannot usually exceed Rs. 5 lakh. This thereby reduces the premium amount drastically. A Mediclaim policy settles expenses either in a cashless way or in the form of reimbursement. The sums assured and coverage are both low in comparison to health insurance.

Availing the right health insurance policy can help you safeguard your finances. It can take care of your medical needs. Now that you are aware of the myriad health insurance benefits choose the appropriate one based on your requirements. Check out Aarogya Care plans on Bajaj Finserv Health to avail a wide range of budget-friendly options. Get access to cashless claims, free doctor consultations, and a claims ratio that far exceeds that of most other providers. Take a proactive approach towards your family’s health by investing in a cost-effective package.

Published on 3 Aug 2021Last updated on 22 Feb 2023

Please note that this article is solely meant for informational purposes and Bajaj Finserv Health Limited (“BFHL”) does not shoulder any responsibility of the views/advice/information expressed/given by the writer/reviewer/originator. This article should not be considered as a substitute for any medical advice, diagnosis or treatment. Always consult with your trusted physician/qualified healthcare professional to evaluate your medical condition. The above article has been reviewed by a qualified doctor and BFHL is not responsible for any damages for any information or services provided by any third party.


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