Introduction
Health insurance is an agreement between an individual and insurance company in which insurance company agrees to provide financial protection for medical expenses in exchange for monthly or annul premium. It has several benefits such as financial protection, peace of mind, tax benefit, quality health care service etc. as well as some drawbacks such as high premiums, limited coverage, complex process etc.
Advantages Of Health Insurance
The main advantages of buying health insurance can be highlighted as follows:
1. Financial Protection
As we know that health insurance covers medical and surgical costs, it provides financial protection and reduces out-of-pocket expenses.
2. Protects Saving
Another advantage of buying health insurance policy is that it helps to protect our saving because insurance companies pay off entire medical expenses. So, we don't have to use our saving for treatment.
3. Tax Advantage
You can deduct your health insurance premiums from taxable income that helps to lower your tax amount. So, it provides tax advantage to the policy holder.
4. Quality Healthcare
It provides access to top-tier hospitals and clinics where you can get quality treatment from specialists and highly qualified doctors.
5. Peace Of Mind
It offers a peace of mind by reducing stress because health insurance ensures the policyholder that unexpected medical needs are covered
Disadvantages Of Health Insurance
The main disadvantages of health insurance can be pointed out as follows:
1. Limited Coverage
Certain treatments and medications might not be included in the health insurance plans. So, you may not get full coverage. So, it provides limited financial protection.
2. Complex Process
It is complex and time taking process to buy health insurance policy. It may be difficult for the individuals to understand coverage details. Its claim process is also time consuming and complex.
3. High Premiums
Another disadvantage of health insurance is high premiums. If you want to buy comprehensive plan then it can be more expensive. Health insurance premiums increase with the age of the policyholder. So, lower-income people may not afford this insurance.
4. Claim Denial
Insurance companies may deny claims for specific types of treatments and specific hospitals. It increases the financial burden to the individuals.
Pros And Cons Of Health Insurance In Short
Pros:
* It provides financial coverage
* It provides access to quality health care
* It provides tax advantage
* It provides protection against long-term illness
* It offers cashless treatment
Cons:
* It is difficult to understand coverage details
* Generally premiums are higher for comprehensive plans
* It does not provide full financial coverage
* There is a possibility of claim rejection
* It has complex terms and conditions