With increasing inflation, come the price hike in every industry. In this regard, the healthcare industry is not any exception as we are witnessing a constant increase in prices of healthcare and with an ever-rising instance of diseases, health insurance today is a necessity. Health insurance provides a person with a much needed financial backup at the time of medical emergencies.
Health insurance is a type of coverage that pays for medical expenses incurred by insured. It can be reimbursed for the expenses incurred from illness or injury, or pay the care provider directly. Health insurance is an important aspect of financial planning and types of health insurance plans are:
- Individual health insurance
- Family health insurance
- Critical health insurance, etc.
The government is also focusing on it and initiated schemes like Ayushman Bharat Yojna and capital expenditure towards healthcare to support the situation.
There are uncountable reasons for getting a health insurance policy and insurance premium that one has to pay depends on person to person for different factors.
Following are the five major reasons for getting health insurance:
- Changing lifestyle: For the everchanging lifestyles we are witnessing today has made us more prone to a wide range of health problems. Irregular work schedules, unhealthy diet and rising levels of pollutions are the key factors for developing health issues.
- Rising medical costs: As discussed above, medical cost is increasing drastically. Therefore, in a medical emergency, it will be beneficial in the rush hour in the future and also help you by stopping you spend your hard-earned savings in the future.
- Income tax benefit: According to section 80D of the Indian Income Tax Act, payments done for health insurance premiums are eligible for tax deductions. The policy owner can claim a deduction of up to Rs. 25,000 till 60 years of age for the health insurance premium paid. Also, an amount of Rs. 50,000 can be claimed as a deduction if a health insurance is bought for your parents’ ages 60 years or above.
- Coverage of pre and post hospitalization expenses: With the rise of mainstream medical costs, the cost of OPD and diagnostic tests have also risen in recent times making the necessity of health insurance policy more vital. Healthcare policies not only cover the hospitalization costs but also the expenses incurred towards OPD and diagnostic tests before and after the stipulated time period as prescribed by the policy.
- Additional Benefits: Other benefits such as ambulance coverage, day-care surgery coverage, coverage for a health checkup and vaccination expenses are covered in the insurance.
Right age to buy health insurance
A common dilemma that everyone faces is about the right age to buy a health insurance policy. Well, there is no specific age but if one buys a policy at an early age, one will have to pay less for the policy. Premiums for policy increases with age due to increment in associated risk and premiums for health policy is determined by age, medical history, city of residence, etc. of the insured. So, if one buys a plan at an early age, it will help to save on the premiums to be paid.
Factors to consider while buying health insurance
When you are heading to buy health insurance, buying critical illness insurance is suggested as well which offers to pay you a fixed sum once you are diagnosed with a critical illness covered in the policy. Critical illness insurance is beneficial and valuable when your regular insurance will help you cover hospitalization bills, the lump-sum amount received from critical illness cover fund other essential expenses related to it.
Companies such as IFFCO Tokio, LIC and various other firms offer a host of insurance policies, Family Health Protector Policy, Individual Health Protector Policy and many more are health policies offered by them.