Health insurance is the primary means by which most consumers pay for medical and hospital expenses. There are two types of health insurance public and private. There are significant differences between a health-managed organization plan and a preferred provider organization plan in the category of private health insurance. So here this article gives the health insurance pros and cons to better understand this topic.
Pros of Health insurance:
- The benefit of health insurance is that it protects your long-term savings. You may be saving and investing for goals such as purchasing a home or funding your child’s education, but a medical emergency may force you to liquidate your assets.
- A large number of people in India purchase health insurance solely for the tax benefits it provides. While the tax benefits should not be the primary reason for purchasing health insurance, it is a significant benefit.
- Cashless claims are one of the most significant of health insurance. Most major insurers now have a large network of hospitals throughout the country. If you have a health problem and are admitted to one of the network hospitals, you will most likely be able to benefit from cashless hospitalization.
- The health insurance plan also includes a bonus component known as NCB. Health insurance plans are typically renewed each year by paying an insurance premium. However, if you do not file any claims for the entire year, you will be eligible for NCB.
- In addition, there are numerous types of add-ons with health insurance policies. While the add-ons raise the policy premium slightly, they significantly expand the scope of the plan.
- Another significant advantage of having health insurance is the peace of mind it provides. Purchasing health insurance provides a great sense of security, especially if you purchase a family floater plan.
Cons of health insurance:
- Corporate health plans may not provide adequate in metropolitan where hospitalization costs are higher than in other areas.
- You cannot claim tax benefits under section 80D of the income tax act because you did not pay the premium to purchase health insurance.
- Because the cover is controlled by the employer, you as an employee/policyholder, do not have much freedom to tailor the plan to your preferences. In cases where certain freedom is permitted, you may be required to pay an additional fee for it.
- If your employer fires you or you decide to leave the company, you will no longer be covered by the group health policy.
- Health insurance is an important part of personal financial management. Because of the aforementioned drawbacks, a corporate health policy is untrustworthy for personal financial planning.
- Your employer has the authority to select the health insurance company, determine coverage, and select other health plan features and benefits.
Thank you for reading this article. If you have any queries regarding our article on the health insurance pros and cons of then do comment in the comment section below.
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