Need and Benefits of Cashless Medical Insurance

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Need and Benefits of Cashless Medical Insurance
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• 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.

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• Nowadays, people live in a stress-prone
  environment with 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 policy holder 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.

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Why buy 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 wipedoff ones
  accumulated life savings.

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• However, in order to get medical insurance
  benefits in the 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 familys 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 for
  buying a cashless health insurance plan.

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What are the benefits for 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 any
  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.

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• 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.

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• 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 ones policy tenure, the
  insured is entitled for No Claim Bonus from the
  company, which he or she can avail at the time of
  policy renewal, according to the company norms.

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• Hospital Room Rent Coverage Some companies
  include the cost ofhospital 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
  formis 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.