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Why Do You Need a Health Insurance Policy?

IndianMoney.com Research Team | Posted On Monday, June 10,2019, 12:06 PM

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Why Do You Need a Health Insurance Policy?

 

 

Health insurance is a necessity with constantly rising health care expenses. It offers financial support while taking care of medical treatment.  Life is uncertain and health risks are a part of life. Getting health insurance is one of the best ways to be financially ready against unforeseen health issues.

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Why Do You Need a Health Insurance Policy?

  1. Health insurance policies cover medical overheads spent by the insured. In India, health care continues to be a costly affair. People need a health insurance plan because of several reasons. This article outlines the most important ones.
  2. People are exposed to health problems because of a paradigm shift in their lifestyle. Improper eating habits and a tight working schedule are other reasons. People tend to rely on their savings in case of an emergency medical treatment. Most of the spending on health care is out of pocket.
  3. Buying health insurance is a good option if you want to reduce tax liability. Under Section 80D of the Income Tax Act, 1961, health insurance premiums are tax deductible. You can claim up to Rs 25,000 a year on health insurance availed for self + spouse + children. Senior citizens enjoy a tax deduction of Rs 50,000 a year on health insurance premiums.
  4. Health insurance policies are necessary not only to cover medical overheads, but also to cover OPD overheads, vaccination costs, day-care charges and so on. Some Insurance companies cover alternative treatment like Ayush but with sub-limits.
  5. Quality health care is not a social service and it comes at a price.  It is even more expensive at reputed hospitals. You need a health insurance plan to cover the high cost of medical treatment.
  6. The retirement age in the public sector is 60 years, whereas in the private sector it’s even lower. If you retire at the age of 50 years, health risks are high. If you cannot afford to pay higher medical expenses because of lower earnings, you desperately need health insurance.
  7. If you are a working professional, your employer may or may not offer a health insurance scheme. Even though you have group health insurance, it might not be enough. This is why you need an individual health insurance plan.
  8. If you are young, there are many health insurance policies to choose from. Policies can be renewed by paying the premium, which is lower compared to life insurance policies.
  9. Health insurance plans have a waiting period of 2-4 years for pre-existing disease. All health insurance plans have a waiting period of 1 month where only accidents are covered.

See Also: How to Buy Health Insurance Policy?

Other Benefits of Health Insurance Plans

  • Coverage for hospital room rent
  • Transportation overheads (shifting a patient to a hospital)
  • Cashless treatment
  • Coverage for pre and post-hospitalization overheads
  • Free checkups based on your previous No Claim Bonus (NCB)
  • Get cashless treatments

Not all policies offer the above-listed benefits. The right plan has to be chosen considering various factors like the sum assured, NCB, exclusions and inclusions, the renewability clause, the minimum entry age and so on. As of now, eligibility criteria are not too strict. You may not have to undergo a medical checkup if you are below 45 years of age. But, you’re required to reveal existing conditions (if any).

See Also: Why Does One Need Health Insurance Policy?

Bottom Line

There is no right age to buy a health insurance policy. The premiums are low when you are young and increase with age. Health insurance premiums are decided on the basis of medical history, age, the place of residence and so on. So, thoroughly understand your requirements before availing the health insurance plan.

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