Health Insurance
Health insurance is a financial tool that provides financial coverage for medical expenses. A health insurance policy is a contract between the insurance company and an individual. The individual pays a premium to the insurer and the insurer offers financial protection against healthcare expenses to the individual in return.
With increasing medical expenses, health insurance acts as a safety net to meet our financial needs. Medical inflation is rising exponentially, and health insurance acts as a financial buffer against medical costs that would otherwise leave one's emergency funds and lifetime savings sufficiently depleted. Not just for individuals, but for the entire family, Health insurance is a necessary part of financial planning and should be integrated with investment purchases as soon as one starts earning. The earlier health insurance is planned, the better coverage is assured for individuals at lower premium rates with no medical tests. We will discuss various aspects of health insurance, their benefits, features, types, and how individuals can choose the right health insurance.
Benefits of Health Insurance
Helps Deal with Rising Medical Costs
Medical inflation can make it challenging for you to cover healthcare expenses out of your pocket. Health insurance offers you access to necessary medical care without the financial burden of rising costs. You can rely on health insurance for pre and post-hospitalization expenses, surgery, doctor's fees, diagnostic tests, prescription medications and more.
Critical Illness Coverage
Apart from basic healthcare expenses, health insurance also covers critical illnesses, such as cancer, health diseases, kidney ailments and more. These illnesses can require long-term medical care and burden you with high costs. Health insurance can be suitable to deal with these expenses so you can focus on your treatment and recovery.
Simple Cashless Claims
Health insurance is a convenient tool that prioritizes your well-being in your hour of need. You can avail of cashless claims without having to go through any lengthy claim procedures. The insurance company settles the bills with the hospital on your behalf. This streamlined process ensures you do not have to pay upfront and seek reimbursement later.
Tax Saver
If you buy a health insurance, you can get deduction up to ₹ 25,000 under Section 80D for yourself and your family (₹ 50,000 if the age of the insured is 60 years or above) and up to ₹ 25,000 (₹ 50,000 if the age of the insured is 60 years or above) for your parents.
How to choose a good health insurance plan?
When choosing a health insurance plan, the following factors should be considered:
Featrues
- Coverage of hospitalization, outpatient care, prescriptions
- Premiums, deductibles, and copayments
- Network of hospitals
- Prescription drug coverage and coverage limit
- Reading customer reviews
- Exploring additional coverage features
- Anticipating future needs
- Comparing policies of different providers
- Setting up a budget
- Seeking guidance from a professional