In the event of a medical emergency, a Mediclaim, a type of health insurance, will pay your medical bills up to the insured amount. A Mediclaim policy, which is offered as both an individual and a floater sum insured option, also provides cashless treatment facilities to the policyholder at the insurer's network hospitals.
Pros of a Mediclaim Policy
Hospitalisation and healthcare costs are over the roof as a result of the rise in lifestyle disorders nowadays. You can receive financial assistance during hospitalisation in the event of a medical emergency by purchasing a mediclaim policy. Below are a few advantages of purchasing a medical insurance policy:
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- Cost-effective: Using a medical insurance policy will help you access healthcare without depleting all of your funds.
- Cashless Treatment: Your insurance provider's network hospitals all offer cashless hospitalisation services, so there are never any out-of-pocket costs on a medical emergency.
- Financial Stress Reduction - Providing financial support in the event of a medical emergency lessens the financial strain on the policyholder and his or her family.
- Individual and Family Floater Cover: There are both individual and family floater policies on the market.
- Hospitalisation expenditures are covered by Mediclaim plans, including OT costs, doctor's fees, nursing costs, medication costs, etc., if they are incurred as a result of a sickness or an unintentional injury.
- Lifelong Renewability: Depending on the policy chosen, Mediclaim coverage may also give the policyholder the option of lifetime renewability.
- Tax Exemption Benefits: You can benefit from tax deductions by purchasing health insurance. Tax deductions are available for health insurance premiums under Section 80D of the Income Tax Act of 1989. This indicates that you will qualify for tax savings on the sum you paid as your policy premium.
- Customised health plans-The fact that health insurance provides coverage to persons with a range of medical needs is an additional benefit. Along with hospitalisation, customers can purchase medical insurance to cover acute illnesses, chronic diseases, pregnancy, and other events. They can either choose a personalised plan or select these coverings as an add-on. Moreover, based on the number of people who need insurance, people can select an individual, family, or senior citizen plan.
- No Claim Bonus- All health insurance plans provide no claim bonus benefits. When a policyholder doesn't file a claim, they are given a no claim bonus, which raises the amount protected under the policy by a specified percentage. This gives you the option to purchase insurance for a bigger sum insured without having to pay a higher premium.
Cons of a Mediclaim Policy
- Premiums Rise as You Get Older
Speaking of the drawbacks, one of the most significant ones is the correlation between age and mediclaim policy premiums. Your age significantly influences the cost of your insurance. When you get a health policy when you are 30 years old vs when you acquire one after turning 50, there may be a sizable variation in the premium price.
In fact, once you reach the age of 60, finding a health insurance plan can be difficult as well. The likelihood that you'll get a health issue rises sharply as you become older, and the insurers compensate for the higher risk by raising the price. It's wise to get health insurance while you're still young.
- Period of Waiting for Current Health Issues.
A waiting period of up to two to three years is also common in mediclaim insurance policies for existing conditions. Any medical expenses resulting from pre-existing medical disorders, such as high blood pressure, diabetes, thyroid issues, etc., will not be reimbursed until the waiting period is finished.
This is one of the major drawbacks of health insurance plans because it necessitates that you pay for medical bills even if you have insurance. Investing in mediclaim insurance when you are young and healthy is important for a number of reasons. However, some insurance plans' waiting period has been lowered recently.
- Co-Pay Provision
Many insurance agreements also include a co-pay or deductible clause to deter the submission of fictitious claims. If your purchase policy has a co-pay provision, you will have to split your medical costs with your insurance company. The co-pay is typically expressed as a percentage of the overall cost of healthcare.
For instance, if your coverage has a 20% co-pay requirement, you will be responsible for 20% of the hospital bill, with the remaining 80% being covered by your insurance. These terms are now typically included in affordable health plans that draw customers in with their low premiums. Read the policy document carefully before buying a policy to ensure you understand all of the inclusions, exclusions, and other clauses.
The benefits a health insurance policy outweigh the drawbacks by a wide margin. If your insurance company covers your hospitalisation and medical care, you may have to pay premiums or a co-payment, but you will save far more money overall.
As a result, you and your family need to get health insurance. In reality, you should acquire health insurance as soon as you can in life. This is because if you purchase a health policy at a young age, you can do so with ease and for less money in premiums.