Medical emergencies can happen to anyone at any moment. Such circumstances can be emotionally taxing in addition to having a big impact on your savings. The rising expense of healthcare makes it so that some diseases’ treatments can wipe out all of your hard-earned savings.
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While emergencies cannot be predicted, you can prepare yourself to cover the costs by getting health insurance for you and your family. The majority of Indians invest in life insurance, but many do not understand the value of health insurance. Your health plan offers complete protection against all illnesses, covers hospitalisation costs, and other costs associated with care.
There are two main types of health insurance plans available in India: reimbursement plans and cashless health insurance plans.
What is Cashless Health Insurance
The term “cashless health insurance policy” refers to a kind of health insurance plan where you are not required to pay out of pocket for medical care. The insurance provider pays the hospital directly for the services rendered. It’s crucial to understand that with this plan, you can only use the cashless facility if you receive care at one of the network of hospitals with which the insurer has a deal.
It is crucial that you inquire about the list of network hospitals from the insurance agent when purchasing a health insurance plan. The insurance company’s website and the policy copy both make it simple for you to find the information. In an emergency, having knowledge of the network hospitals in your area will help you avoid last-minute complication and waiting period.
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Types of cashless health insurance
There are different types of cashless health insurance policies available, including:
1. Individual cashless health insurance: This type of policy provides coverage for an individual, and the policyholder can avail of cashless treatment at network hospitals.
2. Family floater cashless health insurance: This type of policy provides coverage for the entire family, including the policyholder, spouse, children, and parents. The sum insured is shared among all the members of the family, and the policyholder can avail of cashless treatment for any family member at network hospitals.
3. Senior citizen cashless health insurance: This type of policy is designed for senior citizens and provides coverage for age-related medical conditions. The policyholder can avail of cashless treatment at network hospitals.
4. Group cashless health insurance: This type of policy is offered by employers to their employees and provides coverage for the employees and their families. The sum insured is shared among all the members of the group, and the policyholder can avail of cashless treatment at network hospitals.
5. Critical illness cashless health insurance: This type of policy provides coverage for specific critical illnesses such as cancer, heart disease, and kidney failure. The policyholder can avail of cashless treatment for the specific critical illness at network hospitals.
6. Disease-specific cashless health insurance: This type of policy provides coverage for specific diseases such as diabetes, asthma, and hypertension. The policyholder can avail of cashless treatment for the specific disease at network hospitals.
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Important features of Cashless Health Insurance
Here are some key features of cashless health insurance:
1. Network hospitals: Cashless health insurance policies are tied up with a network of hospitals where the insured can avail of cashless treatment. The network hospitals are pre-approved by the insurer and offer quality medical care.
Pre-authorization: Before availing of cashless treatment, the policyholder needs to obtain pre-authorization from the insurance company. This helps to ensure that the treatment is covered under the policy and the claim will be settled later. In such a scenario there is no chance of inconvenience or waiting period in health insurance.
3. No cash payment: With cashless health insurance, the policyholder does not need to pay for the medical expenses at the hospital. The insuring company settles the bills directly with the hospital.
4. Wide coverage: Cashless health insurance policies offer coverage for a wide range of medical expenses, including hospitalization, diagnostic tests, doctor’s consultation fees, and other related expenses.
5. Annual limits: Cashless health insurance policies come with annual limits on the amount of coverage available. The policyholder needs to choose a plan that provides adequate coverage for their healthcare needs.
6. Premiums: The premiums for cashless health insurance policies may be higher than traditional health insurance policies due to the added convenience of cashless treatment and wider coverage.
7. Exclusions: Cashless health insurance policies have certain exclusions, such as pre-existing conditions, cosmetic procedures, and alternative therapies. It’s important to read the policy documents carefully to understand the exclusions before purchasing the policy.
Benefits of cashless health insurance
There are several benefits of cashless health insurance, including:
1. Convenience: Cashless health insurance eliminates the need for policyholders to pay for medical expenses upfront and submit reimbursement claims later. This is particularly helpful in emergency situations where immediate cash payments may not be possible.
2. Faster processing: With cashless health insurance, the pre-authorization process and claim settlement are faster, as the insurer deals directly with the hospital. This reduces the burden on the policyholder and helps to expedite the treatment process.
3. Access to quality healthcare: Cashless health insurance policies are tied up with a network of hospitals that provide quality medical care. This means that policyholders can access medical treatment from reputable healthcare providers without worrying about the financial aspect.
4. Comprehensive coverage: Cashless mediclaim
offer coverage for a wide range of medical expenses, including hospitalization, diagnostic tests, doctor’s consultation fees, and other related expenses. This provides comprehensive coverage for the policyholder’s healthcare needs.
5. Cost-effective: Cashless health insurance policies can be cost-effective, as the policyholder is not required to pay for medical expenses upfront. The premiums for cashless health insurance policies may be slightly higher than traditional health insurance policies, but the added convenience and wider coverage may be worth the extra cost.
6. Tax benefits: Policyholders can avail of tax benefits under Section 80D of the Income Tax Act for the premiums paid towards their cashless health insurance policy. This can help to reduce their overall tax liability.
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Overall, cashless mediclaim provides policyholders with the peace of mind that comes with knowing they can access quality healthcare without worrying about the financial aspect.
As long as you are prepared for emergencies, you can simply enrol for a cashless health insurance policy now that you are aware of the benefits and claim procedure. Keep your finances stable and access the best healthcare available without depleting your savings. Prior to selecting an insurance, make sure to read all terms and conditions.