What is health insurance and why do I need it?
Health insurance provides financial protection against medical expenses. It can cover injuries resulting from accidents, surgeries, and preventative health checks, among other things.
In India, there are many different types of insurance plans, including critical illness insurance.
Why is health insurance important?
Here are some reasons health insurance is so important.
Financial protection
Health insurance provides financial protection against medical costs, including hospitalization, surgery, medication, ambulance expenses, and other healthcare services. You can cover these costs with your insurance without using up any savings or taking on debt.
Conditions of emergency
Unexpected medical emergencies, such as sudden illness or accidents, can lead to large medical bills. In such situations, health insurance can provide crucial financial assistance. Health insurance allows you to receive timely medical care without having to worry about financial consequences.
Protect your family
Your family is protected by health insurance, which ensures that they have access to medical care at all times. Health insurance gives them reassurance, and improves their quality of life and well-being.
The cost of healthcare is rising rapidly
Health insurance is necessary because of the increase in medical expenses. Medical trend rate (i.e. The increase in cost per person due to medical inflation will be double that of inflation in India. In India, the medical trend rate is expected to be 10% while inflation is predicted at 5%. Most insurers report that cancer and circulatory diseases are the two most common claims. These are followed by respiratory and gastrointestinal conditions. You can fight serious illnesses such as cancer and heart conditions with fixed-benefit health insurance.
Coverage for critical illness
Costs associated with critical illnesses can be high. Critical illness insurance offers financial protection for critical illnesses such as cancer, heart disease, kidney problems, organ transplants, and other life-threatening diseases. It can be used for expenses like chemotherapy, radiotherapy, hospitalisations, surgeries, medication, rehabilitation, and more.
Benefits of health insurance
Money upfront given without medical bills
Health insurance policies with fixed benefits pay the full amount upon diagnosis. No, you do not need to provide proof of treatment or hospitalization, such as hospital bills. These policies cover both expenses before and after the hospitalization. No pre-specified limits or durations are specified. The insurer will pay out the money if the policyholder has a condition that is covered by the policy.
High Coverage at Low Cost
Health insurance plans with fixed benefits offer a high level of coverage for a relatively low premium. You can save money while also being able to relax even if you are diagnosed with a serious illness.
Increase in sum assured automatically
It is also a way to control the cost of medical care. You get more coverage for every year that you don’t claim. It means that if you have a year with no claims, the money paid for your premium is not wasted. You get more coverage if you pay a premium in a year with no claims.
Cost of a fixed premium
Plans for health insurance offer benefits that are fixed at a premium that is fixed. In such plans, the premium is fixed throughout the duration of the insurance policy. So, your household budget will not be affected by rising insurance costs. Some plans offer discounts on your first-year premiums if both you and your spouse have coverage.
Tax advantages
Health insurance plans with fixed benefits offer tax advantages. You can deduct up to Rs. 25,000 from your taxable income for health insurance premiums if you pay them. Section 80D provides this benefit if you are under 60 years old. The maximum deduction is Rs 50,000 if you or your family members are more than 60 years old. You can also claim the same benefit for premiums you pay for parents.
Cashless services
Cashless hospitalization is provided via health insurance. With this option, you can receive medical care at network hospitals without having to pay in advance. The insurance company pays the hospital directly in emergency situations. In addition to making the procedure run more smoothly, this guarantees that you may concentrate fully on your health without having to worry about handling urgent financial matters. Additionally, cashless procedures save time, which is important in medical crises.
FAQs
1. Why is health insurance so important?
It is essential to have health insurance because the cost of good medical facilities, hospitalization, and other services can be very high. A health insurance policy can help you protect yourself from rising medical costs.
2. Can I have more than one health insurance policy?
It is possible to have multiple health insurance policies. You cannot claim the exact same expenses for multiple policies.
3. Do I have to get a medical test before purchasing health insurance?
Medical tests are conducted before issuing the policy in order to determine eligibility.
4. Does smoking affect the price of my health insurance policy?
Smokers do pay more for the same insurance policy. This is because smokers are more prone to certain health conditions.
5. Can I use my health insurance policy more than once per year?
If the insurer has not set a limit in the terms of the policy, you can use your health insurance as often as you like. The sum insured cannot be exceeded.
6. What is covered by health insurance?
Standard health plans may not cover pre-existing conditions, self-inflicted injuries, or general intoxication. You should read the terms and conditions of the policy to find out about any exclusions.
