“Health Insurance” is a form of insurance that primarily covers your medical expenses. Much like other insurance policies, a health insurance policy is a contractual agreement between an insurer and an individual or group. In this agreement, the insurer commits to providing specific health insurance coverage at a specified premium, subject to the terms and conditions outlined in the policy.
While the concept of health insurance in India isn’t new, it’s alarming that many Indians still don’t grasp the significance of having health insurance. It’s crucial for people to understand that, in many cases, health insurance is more important than life insurance because the likelihood of needing medical care multiple times during one’s earning years is a more realistic scenario.
Here are compelling reasons why you should consider obtaining health insurance:
Escalating Medical Costs: The foremost reason to opt for health insurance is the ever-increasing expenses associated with medical care. The rising costs encompass various aspects, including doctor’s fees, hospitalization charges, expensive medications, diagnostic tests, and more. Individuals and families, particularly NRIs with parents residing in India, should be prepared to manage these mounting medical care expenditures. A health insurance or mediclaim policy can help alleviate the financial burden by covering a significant portion of these costs, within the policy’s limits.
Quality of Treatment: The second critical reason for investing in effective health insurance is to ensure access to quality treatment. With a robust health insurance plan in place, you and your family can prioritize treatment and recovery without being overly concerned about the associated expenses. In a health emergency, peace of mind is invaluable. Instead of being haunted by the looming medical bills, you can concentrate on getting the best possible care, which is essential for a swift recovery.
Tax Benefits: Although not the primary motivation, tax benefits can be an additional incentive to buy a health insurance policy, particularly for salaried taxpayers. Under Section 80D of the Income Tax Act, 1961, policyholders can avail tax benefits. The Union Budget of 2018 increased the tax-saving benefit for senior citizens from Rs 30,000 to a maximum of Rs 50,000. This means that investing in an effective health insurance policy not only secures your health but also brings financial relief through tax savings.
In summary, an effective health insurance policy provides peace of mind and financial security by mitigating the burden of escalating healthcare costs. It ensures access to quality treatment and allows you to focus on recovery without constant worry about expenses. Additionally, it offers tax benefits for those looking to optimize their financial planning. Don’t wait until a medical emergency strikes – consider health insurance as a means to safeguard your well-being and financial stability