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5 Benefits of Health Insurance

Learn why health insurance is important: Cover hospitalization expenses, tax benefits, get convalescence benefits, protect against critical illnesses, and access allied benefits for holistic care.

  • 26 May 2015
  • 3 min read

Are you aware of the benefits of health insurance? Do you believe that you will never need health insurance because you are fit and fine? Do you believe that the only benefit of health insurance is reimbursement in the event of hospitalization?

Here are 5 Benefits of Health Insurance

1. Don't Pay for Your Hospitalization

You can avail cashless health insurance (indemnity-based) at networked hospitals of insurance companies. It means that you do not have to pay the medical expenses at these hospitals. The insurance company settles them on your behalf.

This facility is a boon for patients as they do not incur out of their pocket expenses, freeing them up from unnecessary mental burden and enables them to concentrate on recuperation and rehabilitation.

2. Get a Convalescence Benefit

Some health insurance plans offer a daily amount for each day of hospitalization. Do not worry about keeping records of the amount actually spent to claim this daily cash. The daily cash amount does not depend upon the amount actually spent.

You can also opt for Convalescence benefit in your health insurance policy. Such a cover pays you a lump sum amount if hospitalization exceeds a certain number of days.

3. Safeguard Your Finances and Avail Tax Benefits

A comprehensive health insurance policy with an adequate sum assured can help you meet unplanned health care expenses so that you do not have to dig into your savings or reroute our income. One can also avail pre-defined tax benefits by paying health insurance premiums.

4. Cover for Life Threatening Critical Illnesses

The fixed pre-defined benefit type of medical insurance policies provides a fixed lump sum payment upon diagnosis and confirmation of certain critical illnesses like cancer, stroke, paralysis, kidney failure, etc. Irrespective of the actual amount spent by the insured, he or she receives the lump sum amount which can be used to fund rehabilitation, recuperation, lifestyle adjustment, etc.

5. Get Allied Benefits

Health care system in India has evolved with preventive health check-ups and improved diagnostics. Certain progressive insurance companies offer benefits that are generally not associated with health insurance policies. Some such benefits are:

  • Consultation with nutritionists
  • Free health check-ups
  • Tie-ups with health service providers
  • Free Consultation with doctors
  • Discounts Coupons on healthcare services

Rising healthcare costs can punch a big hole in your pocket. Paying a small health insurance premium is the simplest way to mitigate the financial losses and to achieve peace of mind. Avail health insurance to save yourself from worries of hospitalization.

Also read:

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.  


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