OPD health insurance is a supplementary cover rendered by the insurer who requires an extra premium for the intensified facility.
Why Health insurance
Health insurance is an essential part of the financial planning method. If you don’t have bought a health cover. You are quite exposed to the possibility of spending large hospital bills. In the event, a family member or yourself is hospitalized.
Sometimes, these hospital’s bills are so long. They can burn out a person’s life investment and savings.
Regularly, health insurance plan hospitalization costs for a patient. Some insurance schemes also pay for (OPD) Out Patient Department treatment.
What is an OPD health insurance cover?
OPD is an option in health insurance provided by the insurer who charges an increased premium for the improved facility. It involves charges contracted other than the hospitalization expenses. That is normally covered under the regular health plans.
The following are amazing of the key features of the OPD cover:
- It includes daycare, non-hospitalization expenses for physicians, check-up etc.
- Good for individuals or families whose medicine expenses are either fixed or have to be incited regularly.
- The extra amount of premium paid for the OPD plan is also suitable for the tax judgment under Sec 80D within the local limit.
- The total amount that can be incorporated under the OPD health plan is commonly lower than the additional premium compensated for it.
- It can be utilized to cover expenses such as doctors fees, blood checks, pharmacy bills, etc.
- Few health insurance companies give discounts on the subsequent year’s renewal if no OPD claim has been filed in the previous year.
Why patients need it
Patients who need regular doctor meetings and require to buy medicine regularly – particularly asthmatics, diabetics, etc.— can buy an OPD health plan. Though the advantage is not meaningful, the more premium paid for exercising the OPD cover would be eligible for tax deduction benefit under Sec 80D within the prescribed limit.
You can think to take the cover if you carry regular OPD responsibilities which you couldn’t bypass anyway and if you have not already consumed the tax deduction under Sec 80/D.
Let’s conjecture this with the help of the following illustration.
Assume, you have a basic health cover of ₹ 5 lakh (option: family floater) for which you have to spend a premium of ₹ 10,000. Now you selected to take an OPD coverage for ₹14,000, and you paid an extra amount of final premium of ₹16,000. The restriction of the OPD claim would be Rs 14,000. The main attraction of paying the OPD premium amount would evolve as a tax benefit.
Let’s understand with different example if you buy the OPD care plan for you. As per the pure understanding, there is no opd care provides by the insurance company. OPD plans are kind of add-on pack which costs you total premium amount towards usages means they do not provide even 1% extra benefit in the opd plan.
As the example complete describes, an OPD cover supports people who incite fixed or monthly medical expenses. However, the total benefit with tax regulation won’t be significant.
If your total annually OPD bill is undecided or lower than the total benefit allotted under the OPD cover, it may be expedient to not buy this cover.
Best Option to buy OPD plan.
It may be better to purchase Gold OPD plan or Classic OPD plan from Root India. Root India OPD plans provide you maximum benefits against premium you paid. Even you save the tax as it happened in the Insurance plan.