Need and Benefits of Cashless Medical Insurance

Medical emergencies are situations which can bring routine life to a halt and result in additional expenditure. That is when buying a medical insurance policy becomes necessary. When deciding to get medical insurance policies, individuals can choose cashless plans that can relieve them of the financial burden to a great extent.

Nowadays, people live in a stress-prone environment with a rising number of diseases. While this is one issue to tackle, sky-rocketing costs of healthcare, on the other hand, is another serious aspect they need to be aware of. Under cashless insurance plans, the insurance company assists the policyholder through cashless hospitalisation facility or offering a due reimbursement for the sustained expenses, in lieu of the policy amount and paying the annual premium amount regularly. Before opting for the best Cashless medical insurance policy, individuals should clearly understand the importance of having such a plan and its many advantages.

Why buy a Cashless Medical Insurance policy?

Cashless health insurance plans are becoming popular among people these days as it replaces any form of payment by cash at the time of medical contingencies. It especially benefits individuals who are cash-strapped or do not have instant access to cash when an emergency arises. That is, the policyholder will not be required to pay the bills for hospitalisation and treatment. Rather, the payment will be made by the insurance company to the hospital directly. Such an insurance plan comes as a boon in a situation which could have otherwise wiped off one’s accumulated life savings.

However, in order to get medical insurance benefits in a cashless way, individuals must approach only the network hospitals. That is, the insurance companies keep a list of hospitals across the country known as the network hospitals, which is also mentioned on the official websites of these companies. And, the benefits of cashless policy can only be availed at any of these network hospitals of the insurance company. Usually, a third party administrator is responsible for processing, approval and settlement of a claim by the policyholder.

Moreover, Cashless Medical Insurance not only reduces a family’s stress by eliminating the financial burden, it ensures the best possible treatment for a family member at the right time. This can be considered another crucial factor in buying a cashless health insurance plan.

What are the benefits of an insured person?

Cashless facility: The biggest advantage of availing a health cover from a reputed insurance company is the cashless feature. An insured person can simply avoid the hassles of getting cash to pay the medical bills in case of an emergency due to disease or sudden attacks of sickness. He or she can just approach any of the network hospitals and get treatment without paying any advance to the hospital.

Hospitalisation: Insurance companies usually offer the cashless facility which can be availed either in case of planned hospitalisation and emergency hospitalisation. In addition, there is another advantage of buying a Cashless Medical Insurance policy. Based on what kind of policy and its specific features one opts for, the health insurance will provide cover for a considerable amount of hospitalisation fee, both before and after the hospitalisation. This period usually varies anywhere between 30 to 60 days, varying for different policy covers and different companies.

Additional expenses: Additional expenses such as transportation cost of the ambulance in case of medical emergency are also covered by some companies. This proves to be an add-on advantage and vital support when one expects treatment in a hassle-free manner.

No Claim Bonus: In case no medical situation arises in the interim of one’s policy tenure, the insured is entitled to No Claim Bonus from the company, which he or she can avail at the time of policy renewal, according to the company norms.

Hospital Room Rent Coverage: Some companies include the cost of hospital room rent in the plan, despite the treatment or any surgery charges. It depends on the extent of the amount insured with the company. Moreover, it is restricted to the type of room one opts for.

Tax benefits: The premium amount the policyholder pays to get medical insurance cover in cashless form is eligible for tax benefits up to Rs 25,000 for individuals below 60 years and up to Rs 50,000 for senior citizens, under Section 80D of the Income Tax Act, 1961.

Alankit Insurance Brokers Limited (AIBL) is one of the pioneer Insurance Broking Houses offering wide range of insurance products according to the specific needs of the clients.