The importance of health insurance and why you must get it
During COVID-19 pandemic everyone has realized that medical emergencies are unpredictable and can cause a financial upheaval that is tough to handle. With a high infection rate, people have understood the importance of a good health insurance plan. Besides, with the rising cost of medical expenses, access to good medical facilities and hospitalisation costs can be financially strenuous. Therefore, getting a health insurance cover for yourself and your family can provide the added protection you need in times like these. Apart from the obvious benefit of having the financial confidence to take care of your loved ones, a health insurance plan is extremely useful.
- Changing lifestyle: There are multiple reasons to have a health insurance policy. The tectonic shift in our lifestyle has made us more prone to a wide range of health disorders. Commuting, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems.
- Safeguard your family: You can choose to secure your entire family under the same policy rather than buying separate policies. Consider your ageing parents, who are likely to be vulnerable to illnesses, as well as dependent children. Ensuring they get the best medical treatment, should anything happen to them, is something you would not have to stress about if you have a suitable health cover.
- Income tax benefit: Payments made towards health insurance premiums are also eligible for tax deductions 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. One can also claim another ? 50,000 as deduction if you buy health insurance for your parents aged 60 years and above.
- Cashless Hospitalization: Imagine if your family member has suddenly fallen terribly ill at midnight. You need to take him to the hospital immediately. Once you arrive at your nearby medical facility, the nurse informs you that he needs a surgery immediately that costs rupees 2 lakhs. Now you are stressed to come up with this money or risk your family member’s life. Such a situation can be easily avoided since most family health insurance policies provide cashless hospitalization. Instead of paying upfront and then getting a reimbursement for the expense, you can now seek medical treatment without worrying about shelving cash during and after admission.
- Protect your savings: While an unforeseen illness can lead to mental anguish and stress, there is another side to dealing with health conditions that can leave you drained – the expenses. By buying a suitable health insurance policy, you can better manage your medical expenditure without dipping into your savings. In fact, some insurance providers offer cashless treatment, so you don't have to worry about reimbursements either. Your savings can be used for their intended plans, such as buying a home, your child's education and retirement. Additionally, health insurance lets you avail tax benefits, which further increases your savings.
- Reduce medical costs: The medical costs have dramatically risen lately. So, in case of a medical emergency, consumers end up spending their savings, which takes a toll on their future plans. Reports highlight that Indians primarily depend on their own savings when it comes to tackling health emergencies.
- Additional benefits: There are also several additional health insurance benefits. For instance, many of the plans come with features like cashless claims, ambulance coverage, pre/post hospitalisation coverage, NCB (No Claim Bonus), and more. Combined with the reasons listed above, these additional benefits further increase the importance of health insurance.