Did you ever think of financial benefits of your health insurance policy? We suppose you already have health insurance that provides you with sufficient cover. If not, then you must enhance your coverage because the health care cost is increasing exponentially at a rate of more than 20 percent each year. The same affects the out-of-pocket expenses of people out there, including medical expenses and more. Since a large share of the population of India still does not have health or medical insurance, the increasing cost of medical treatment at the hospitals eats up their hard-earned wealth. What are out-of-pocket expenses? Although buying a health insurance policy reduces the risk of financial problems or difficulties in your life by making available world-class health care resources to cure critical illnesses and other life-threatening diseases, you also need to save money to manage your daily expenses to cater to your life to go on smoothly. This means that you need to manage things in your budget. Meanwhile, your savings can be planned for a better life after retirement, such as for managing medical expenses that increase with age. Focusing on the scenario, the government of India is aiming at bringing a revolution in the healthcare division. How to choose the right medical cover? Health insurance policies bring along a mixed bag of inclusions and exclusions, which refer to both what it covers and what it does not cover. The list of inclusions includes pre and post hospitalization expenses, day care procedures, claim reimbursement etc. In contrast, the list of exclusions includes coverage for any pre-existing disease if not disclosed to the insurer when purchasing the plan. However, the coverage for a pre-existing disease is covered (if only) after a period of time (usually 3 to 5 years). Choose a policy if it covers the following:
When it comes to choosing the best health insurance policy for self or your family members, pick the one that offers you a long-lasting coverage at an affordable premium price. Since your life after retirement will not be in your control or you will be dependent on your successors, ensure that your policy covers your life after retirement in particular. Health plans by Apollo Munich, Max Bupa, and Start Health Insurance are comprehensive and last throughout the life of insured. It is recommended to explore health plans offered by these insurers if you are looking forward to buying one for self or your parents. Choosing a family floater plan is prudent and is always suggested. A health insurance policy that includes critical illness cover is the best option available till date since it covers you if you are diagnosed with a critical illness, viz. heart attack, stroke, kidney failure, major organ transplant etc. Well, if you really are interested in buying a health insurance plan, it is recommended to get one at an early age because the premium increases with the age. In other words, the older you get the costlier the premium gets. Health Cover plus Investment Another type of health insurance policy brings along the benefits of both protection and investment. However, such a plan is usually costlier than a typical vanilla cover available with your insurer. While choosing a special plan brings you special benefits, a part of your premium is invested in the market (usually in equity/debt funds). Those who are more interested in participating in the market find these plans more suitable, as they get add-on benefits. Know more about health cover and health insurance plans – Click Here Insurance Portability The advancement of insurance policies, especially health insurance plans allows you to migrate from your group insurance (provided by your employer) to an individual cover, provided the insurer remains the same. This makes them earn multiple benefits, such as they do not require the participation of their employer in the claim process. Although IRDA has already passed insurance migration or portability, it is yet to be implemented by the insurers in India, based on insured’s demand. Therefore, its benefits are yet to be seen by the countrymen. Tax Benefit Tax benefit is another key feature of health insurance policies in India. It states that the premiums paid by you towards your health insurance policies tax-free under section 80D of Income Tax Act, 1961 of India. Simply put, you can avail tax benefit up to Rs. 20, 000 if you are less than 60 years of age. At the same time, if you pay the premiums for your parents who are senior citizens of above 60 years of age, then get tax exemption up to Rs. 30 years. This means that you can avail a combined benefit of Rs. 55, 000 on the premiums paid for both the policies.
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