It is a fundamental duty to be responsible for your health and start saving and investing early in suitable health insurance policies.
For most of us, one of the top goals in life is to work hard to achieve financial stability in life. From investments to savings, finances are managed as carefully as possible to get closer to one’s objectives/dreams/goals.
But one can never tell which way life takes you. It only takes an unexpected illness or injury to wreck your life’s finances/savings.
One way to smartly cope with such huge financial emergencies without touching your savings is to buy Health Insurance.
Here are some reasons why it’s important to buy health insurance. Read on to know more:
1. Changing lifestyles
One can find a plethora of reasons to have a health insurance policy in place. The tectonic shift in our lifestyle has made many of us more prone to a variety of health disorders. Commuting for long hours, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems at earlier life stages. This necessitates financial prudence to avoid stress in medical emergencies.
2. Rising Costs / Makes Financial Sense
With technology and research playing a huge part in advances in the medical field, medical costs have dramatically risen. This means in case of a medical emergency, you could end up spending from your precious savings, which takes a toll on future plans. In recent reports, the highlights are that Indians primarily depend on their own savings when it comes to tackling health emergencies which is not ideal in terms of preserving wealth and long-term financial health.
3. Income Tax Benefit
If one is in the cycle of paying premiums for Health Insurance the advantage is that payments made towards health insurance premiums are eligible for tax deductions. The law states that under section 80D of the Indian Income Tax Act individuals up to 60 years of age can claim a deduction of up to ? 25,000 for the health insurance premium paid for themselves, or for their spouse or children. It is also possible to claim another ? 50,000 as a deduction if you buy health insurance for your parents aged 60 years and above. In simple terms, this deduction will be available with respect to payments towards annual premiums on the health insurance policy, or preventive health check-up, of a senior citizen, or medical expenditure in respect of every senior citizen.
4. Coverage of pre and post hospitalisation expenses
The great advantage of holding a health insurance plan is that not only does it cover mainstream medical costs, but also the cost of OPD (out-patient department) expenses. For example, the diagnostic test costs have also risen in recent times which have made it even more vital for one to buy a health insurance policy. It is noteworthy that the medical policies not only cover the hospitalisation costs but also the expenses incurred towards OPD and diagnostic tests before and after a stipulated time period as prescribed by the policy. Read the details carefully to make sure you are fully aware of what comes in the package.
5.It helps to expand networks
Most health insurance policies work in partnership with a number of renowned hospitals. If you have a health insurance plan then policy providers take it upon himself to guide you through the treatment process and convince you to get yourself treated from one of these renowned hospitals. Hence, once you purchase a health insurance policy your network expands and this also assures that you get the best treatment that’s available in the market.
6. Provides coverage to the pre-existing diseases
The medical insurance policies in India also provides coverage for those diseases which you have been diagnosed with even before applying for the Insurance plan. All you need to do is provide all the right documents related to your medical ailments to your policy provider and your health insurance plan will do the rest to make sure all the treatment charges related to that particular disease are covered.
7.The Medical Insurance Policies In India are flexible
There are a number of policies that feature a number of plans for different age groups and categories. The type of plan for a salaried person is quite different than that for a self-employed individual. These plans are highly flexible and you can opt for one as per your own needs and convenience. A personalised approach can be taken when it comes to choosing the right policy.
8. Low Government Expenditure on public health
Based on a WHO report the Indian government spends only 5% of its annual expenditure on healthcare. This means that low government expenditure directly implies low-quality public healthcare options and higher out-of-pocket expenditure by people (since they opt for private facilities). According to statistics, amongst Indians, 70% or more pay their medical expenses out of their personal savings. This is why one should be aware of the various types of health insurance that’s available that will provide you all the necessary benefits to make sure you don’t run out of your life savings.
To conclude reports have shown that India has the sixth-highest number out of pocket spenders in healthcare out of 50 countries in the low and middle-income category. Statistics tell us that 18 percent of urban Indians and 14.1 percent of the rural dwellers have any sort of health insurance coverage. Nearly three-fourths of the urban citizens are reliant on corporate insurance plans which are mostly low-sum insured.
To ensure comfort for your family and yourself, it is best to be aware of the types of health insurance and avail of one to stay protected. To know more click here.