At a time when inflation is adding to all our costs including medical bills, health insurance is a necessary asset. Insurance provides risk coverage against expenditure caused by unforeseen medical emergencies. Failure to have medical insurance at a time of medical crisis can result in a personal financial disaster.
Two common mistakes that are committed by people when it comes to buying health insurance is that they either don’t purchase insurance at the right time or they over compensate by buying too much insurance when they realise their mistake.
Here are some points that highlight the importance of health insurance in India:
Build up on the insurance provided by your employer
Most organizations provide their employees with a basic health plan that covers minor ailments with a decent amount of coverage. However, this amount may not be sufficient should a major medical emergency such as hospitalisation or surgery. Thus, it is advisable to get additional cover in the form of another health plan or building up on the current one by paying the additional premium amount yourself. This will also benefit your family too, in case of their health exigencies.
Also, the company provided health insurance is only valid as long as you are employed with the organization. In situations such as job change, job loss or retirement, the health insurance fails to be valid. Thus having a backup plan that will kick in immediately will be beneficial.
Availing world class medicare without stress
Without health insurance, seeking treatment in a private hospital can turn out to be a costly affair. With a health insurance, you can opt for treatment from hospitals that boast of the best facilities. Insurance providers generally have tie ups with several hospitals across the country. This eliminates the stress of ‘how to pay the medical bill’ and one can concentrate on getting better.
Buying a health insurance policy is best done when one is young and there are fewer medical complications. It is also more cost-efficient as compared to buying it in your mid-thirties. The earlier you purchase it, lower the premium you have to pay. You also get a more comprehensive package if you buy it at a younger age. As a person grows older, he/she tends to develop health issues and the cost of cover increases. Most health insurances exclude coverage of pre-existing conditions which defeats the entire purpose of buying insurance. Some insurance companies also have upper age limits which leaves one with limited options. Thus getting health insurance early has a multitude of benefits.
The tax benefit offered on health insurance is a cherry on the cake. Payments made towards health insurance premiums are eligible for tax deductions under Section 80-D of the Income Tax Act. One can generally earn a rebate up to Rs 25,000 per annum for a family insurance. Additionally, a rebate of up to Rs 30,000 can be availed if the health insurance if taken for parents who are senior citizens. If the individual is less than 65 years of age, they can claim a deduction of up to Rs 15,000 for an insurance paid by themselves for themselves or their families. However, the tax rebate shouldn’t be the sole reason for purchasing a health insurance.
Not only are medical costs rising rapidly, a lot of auxiliary costs are involved when going for a check-up or hospitalisation, such as doctor visiting fees, diagnostic tests, etc. If one doesn’t have health insurance, costs like these can end up eating into your savings. Many individuals end up liquidating their assets to meet the expenses of sudden medical emergencies. To avoid all such situations, it is essential to get a good coverage plan which covers your full family comprehensively.
Having had an overview of the benefits of health insurance, it is impossible to not buy it. Choose one that best suits yours and your family’s needs. Be futuristic – buy health insurance today!