Today, keeping in mind the unpredictability of life health conditions, every individual should have a health insurance policy in place. We all are well aware of the benefits of health insurance. However, many of us still feel that it’s unnecessary to invest in a health insurance plan in the country. It’s, therefore, necessary to understand that with the rising medical costs and uncertainty of getting affected by illnesses, it’s always better to be on the safe side and have a good health insurance plan handy.
But with so many options available online, it’s not always easy to choose the right policy. Also, many of us are often confused about which one to choose; a defined-benefit plan with a critical illness cover or an indemnity-based plan.
With so many different options of health insurance plans like Tata AIG health insurance plans to choose from and with the varying needs of every individual, there are many things to consider before buying medical insurance online. In health insurance, there is no one-size-fits-all. So, what suits you may not suit your friend.
Also, if you cannot choose between a defined benefit plan and an indemnity-based health insurance policy, you need to understand what the latter is all about. In this article, we will particularly talk about the unique advantages of an indemnity-based health insurance plan.
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What is an Indemnity-Based Health Insurance Policy?
An indemnity health insurance plan is a critical illness insurance plan that allows you to choose the hospital, the doctor, and healthcare professionals during a medical emergency. This is one of the most flexible health insurance plans in the country. Not only this, there are a lot more to this type of health insurance plan. Let’s understand this better with an example.
Suppose Mr Singh has purchased an indemnity-based medical insurance policy with a sum assured of ₹4 lakhs. Recently, he got admitted to a hospital and underwent gallbladder stone removal surgery. The total expenses incurred during the same was ₹1.5 lakhs.
In that case, the insurance company will pay him the exact amount once his claim application is accepted, along with the necessary documents. And the remaining amount will stay as it is so that he can use it for his future medical emergencies. However, the indemnity-based healthcare plan will not cover the pre-hospitalisation and post-hospitalisation expenses.
So, if you still cannot make up your mind about whether or not you should buy an indemnity-based health insurance policy, knowing about its benefits will help you make the right choice.
3 Top Benefits of an Indemnity-Based Medical Policy
The indemnity-based healthcare plans are a lot different from other health insurance policies. Here are a few benefits of the same:
If you opt for an indemnity-based health insurance policy, you’ll get to choose the hospital from where you’d like to get the treatment. In addition, the insurance company will have tie-ups with a vast network of hospitals and doctors in the city. So, as a policyholder, you will have the flexibility to choose the hospital and the doctor for your treatment.
Also, if you choose any one of the network hospitals for your treatment, you can enjoy the benefits of cashless claims. This means that you will not have to pay a single penny from your pocket. Instead, your insurer will settle the bills with the hospital directly.
2. Wide coverage
Unlike any other defined-benefit health insurance plan, your indemnity-based health insurance policy will provide coverage for a wide range of ailments and treatments. Also, since such plans will cover the hospital and treatment bills, you will not have to worry about the treatment charges if your policy has a high sum insured.
3. Affordable premiums
Suppose you think that health insurance will be just another unwanted expense majorly because of the high premium rates. In that case, you’ll be surprised to know that the premiums are quite affordable for indemnity-based plans.
This is because such plans offer a deductible where the policyholder will only share a certain percentage of the overall medical expenses. Therefore, the insurer faces lower risks and then passes off the benefit to the policyholder in terms of a low premium charge.
What is Covered in an Indemnity-Based Health Plan?
You will get to know this once you read the indemnity policy terms and conditions well. The policy booklet will spell out every coverage detail, inclusions and exclusion. So, before opting for a policy, read the policy documents carefully.
You can also ask your insurance provider to help you understand the coverage better. If anything is unclear to you, they will help you understand the policy in a detailed manner.
If you are looking for a flexible health insurance policy, an indemnity-based healthcare plan could be the best medical policy for you. This plan will provide you with optimum protection, and you will have to pay an affordable premium. Also, you should always check your premiums through a health insurance calculator to understand your premium payments better.