Why Health Insurance Matters
Every single one of us is exposed to various health hazards and a medical emergency can happen to anyone at any time. Having health insurance is like having a companion in distress. How? Let's see.
Our world has witnessed one of the worst health events in recent history with COVID-19. We all have taken precautions and have taken health precautions, but along with precautions we must also have health insurance. After all, health insurance is what every family needs not just during pandemics.
"Health is Wealth" – This maxim itself describes the importance of health. Medical care is becoming progressively expensive with each passing day. It can hamper our financial planning. Buying Health Insurance protects us from sudden, unforeseen costs of hospitalization which would otherwise make a dent into our savings or lead to indebtedness.
What is Health Insurance?
It is a type of insurance that helps an insured individual, or a group meet health care expenses. It is a way to lessen the financial burden in the event of medical emergencies like illness, injuries, etc. The insurance company guarantees to pay for the medical expenses in case the insured falls ill or meets with an accident that results in the insured being hospitalized.
The Insured is a person who buys insurance policy whose interests are protected by an insurance policy. Insured can be an individual or a group (consists of family members).
Why Health Insurance?
Stress is becoming more prevalent in our fast-paced world and causes major health problems among Indians. Major health conditions include heart disease, diabetes, and stroke among others. According to a WHO report, these cause the majority of deaths. Health insurance policies can help prepare one for such situations.
A number of demographic factors, including increasing life expectancy, the rising cost of medical care in private hospitals are some of the factors necessitating the need for health insurance.
Benefits of Health Insurance
While the health care is becoming expensive, buying Health Insurance is much more affordable and beneficial. Let’s have a look at some of the advantages Health Insurance.
Provides Financial Protection
Expenses for emergency medical care can result in severe financial difficulties. You may have to sell your assets to meet such expenses. A health insurance plan gives you financial security during such challenging times.
Protects your Savings
Health insurance reduces the risk of using up all your savings. The right type of health insurance policy can help you manage your medical expenses without having to dip into your savings. You can claim the money against the insurance and get all the money back.
Saves from Debt Burden
In the case of a medical emergency, you do not have to depend on anyone else for financial support. The health insurance provides you with the necessary financial support during the tough times. Reduces fiscal burden of the insured person and his/her family. Health insurance gives you peace of mind.
Many insurance companies have tie-ups with the leading hospitals that allow their insured to receive cashless treatment. In the absence of a hospital tie-up, the insurance company reimburses the insured for all medical expenses. Health policies may also contain a provision for reimbursement of cost of health checkup.
Fights Medical Inflation
The cost of healthcare is not limited to hospitalization. Other costs, such as doctors' consultations, diagnostic tests, operating room expenses, medicines, ambulance fees, room rent, etc., have increased as well. Health insurance premiums are relatively inexpensive and can help mitigate such expenses.
Income tax Benefit Under Section 80D
The best part with the Health Insurance is it comes with attractive tax benefits as an added incentive. Under Section 80D of the Income Tax Act, 1961, one can avail deduction for health insurance premium paid for self, spouse, dependents, children, and even parents.
You can claim a deduction of ₹ 25,000 u/s 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parent(s) is available up to ₹ 25,000, if they are less than 60 years of age, which takes the total deduction to ₹ 50,000. If the parents are aged above 60, the deduction amount is ₹ 50,000. In this case, you can claim a total deduction of ₹ 75,000.
Depending on the need & choice of the insured a wide variety of insurance products are available nowadays with a range of health cover benefits such as Hospitalization Cover, Critical Illness Plans, Family Floater Plans, to name a few.
In today's fast-paced society, health insurance is a necessity. It is essential to have the right health insurance policy to protect yourself and your family in case of an unforeseen event that might leave them financially handicapped. A smart decision regarding your health insurance can prevent these unnecessary hardships. Health insurance can be confusing. The good news is we are here to help you choose the perfect insurance for you, Contact us.