6 Reasons Why Health Insurance is Important
Do you have health insurance? Do you think the
health insurance provided by your employer is adequate?
There is a popular saying that `health is wealth`.
In the modern context, deteriorating health has the potential to wipe out all
your wealth in a fraction of a second.
In the current scenario, health insurance has
become the need of the hour. An adequate health insurance plan is essential as
it insures the health of you and your family members.
In this article, we will explain health insurance
and its importance.
Meaning of Health Insurance
When you take a health insurance, the insurance
companies take the financial responsibility of your and your family member`s
health. So, if you are hospitalised, the insurance companies will take care of
the hospitalisation and other fees.
There are two key ways to claim your insurance
proceeds. If you are hospitalised in the non-network hospitals, you can provide
the receipts to get your claims. Here, you pay for the hospital bills upfront.
However, if you seek treatment in a network
hospital, you can enjoy cashless hospitalisation. This means you don`t have to
pay any money. A good deal of insurance companies have tie-ups with hospitals
and treatment facilities.
Health insurance is a must for everyone.
Individuals under 45 years of age can take insurance policies undergoing no
health check-up. The premium that needs to be paid increases with age.
Importance of Health Insurance
It takes care of your medical expenses
Healthcare costs are expensive and it is likely to
skyrocket in the near future. Government`s inflation data have shown that
health care inflation is almost double the rate of overall inflation. The
average retail healthcare inflation in India was 7.14% in the financial year
2018-19.
With the ever-increasing cost of health care,
without insurance, a single day in the hospital may wipe out several months
savings. In this urgent scenario, with no health insurance, you may have to
withdraw money from other investment options such as equity mutual funds. As a
result, there may be a delay in reaching your financial goals.
Health insurance makes sure that your savings and
financial goals remain intact. Insurance takes care of hospitalisation expenses
and medicine costs. Few insurance plans also cover the cost of
pre-hospitalisation and post-hospitalisation expenses such as ambulance costs,
check-up fees and medicine costs.
Avail Cashless Health Insurance
As mentioned above, many insurers have tie-ups with
hospitals to offer cashless treatment to their customers. Hence, customers can
avail the treatment paying no cash. This means you don`t have to pay any money
for the treatment and focus on the well-being of your loved ones.
Entire family protection
Health insurance should cover all your family
members under health insurance. However, taking individual health cover for all
your family members can be expensive. Family floater plan that covers the
health-related costs of the entire family is an affordable option.
Covers lifestyle-related diseases
There is no denying the fact that several
lifestyle-related diseases have sprung up because of your sedentary lifestyle.
Diabetes, high blood pressure and cardiac problems are some lifestyle-related
diseases. It can lead to other severe health problems.
Health insurance plans cover these
lifestyles-related diseases. While it is necessary to be physically active to
keep these diseases at bay, with health insurance you don`t have to worry about
the costs raising due to these issues.
Avail Tax benefits
Besides helping to cover the healthcare-related
costs, you can also save tax on the premium paid on health insurance. You can
save tax up to Rs.25,000 under section 80D of the Income Tax Act in a financial
year. The premium paid for you and your spouse and dependent children is
considered for tax exemptions.
Conclusion:
Whether you want to protect yourself from the costs
arising from coronavirus or lifestyle diseases treatment, health insurance policies
cover a lot of such diseases. Cashless hospitalisation makes it easy for
customers to avail cashless treatment.
Health insurance policies come with a lot of terms
and conditions. Hence, it is advisable to sit with your financial advisor to
figure out the best health insurance plan for you.
#niveshsimplified #fundvaliz #mutualfundsahihai #investment