Should You Buy an Indemnity Health Insurance Plan?
Are you interested in purchasing a health insurance policy? Have you been looking for an ideal plan that meets your medical needs to a tee? If so, it is advised to buy an indemnity based health insurance plan.
Indemnity Based Health Insurance - The Concept
A health insurance policy type, indemnity health insurance provides reimbursement for the amount spent on medical treatment. Referred to as traditional health insurance, indemnity based health insurance policies reimburse the actual amount incurred as medical expenses during hospitalization stay, up to the sum insured under the policy. Talking about the remaining amount, the balance amount can be utilized in the future for a claim during the policy term. Providing superior protection against sudden medical expenses, indemnity based health insurance plans have a sum insured that is pre-decided between the policyholder and the health insurance company.
Indemnity based health insurance comprises basic health insurance policies as well as family floater policies. Some of the expenses covered under the indemnity based health insurance plans include hospital room rent, medicines fees, surgical charges, OT charges, and more. Since indemnity health insurance features reimbursement, it is important for a policyholder to keep all the documents such as medical bills safely as at the time of claim, all the proof of expenses are submitted at the health insurance company.
Indemnity Based Health Insurance - Benefits
When it comes to the benefits of indemnity based health insurance, the benefits include:
- Flexibility - Indemnity health insurance plans come with the flexibility to choose the hospital as well as the healthcare professional. You can choose any hospital based on the required treatment type without worrying about the treatment expenses. One of the best things about indemnity plans is that in the case of cashless indemnity insurance, one doesn’t even have to worry about the bill submission part. Bill submission is taken care of by the network hospital visited.
- Wide Cover - Indemnity based health insurance plans not only provide the actual amount of the hospital bill, subject to the maximum sum insured limit, they also cover a wide range of treatment and illnesses as compared to fixed benefit health insurance plans.
- Low Premium - Most of the indemnity based health insurance plans come with the deductible feature. Since the policyholder shares a specific percentage of the overall cost of medical expenses, the premium becomes low.
- Tax Benefits - Indemnity based health insurance policies offer tax benefits under Section 80D of the Income Tax Act.
When Indemnity Based Health Insurance is Right for You?
Choosing an indemnity based health insurance plan is right for you:
- If you want a primary care doctor of your choice.
- If you are fine with paying a little more price in terms of healthcare costs such as the deductible.
- If you are comfortable with collecting medical bills or waiting for your reimbursement.
At Last
In today’s day and age, when medical costs are so high, it is a must to have health insurance by your side, especially an indemnity based health insurance policy. An indemnity insurance policy can not only help you get your hospital costs covered but also free you from mental stress in an already stressful situation.
If ready to buy an indemnity based health insurance policy, whether the individual plan or family floater, make sure you focus on its coverage, exclusions, premium, CSR, and various other aspects before making a final decision. Considering these significant aspects will help you make a worthy choice.
You May Also Like To Read: Understanding Fixed Benefit & Indemnity Based Health Insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
