Why you need health insurance?

Health is the greatest possession that deserves to be treasured throughout life. That’s the reason I guess they call it “HEALTH IS WEATLH”

Some people say our health is our hand’s & if we maintain it, we will have less or no health-related issue in future. But I slightly disagree on this sentence. According to me large part of our health also depends on other factors such as where we live, the state of our environment, our genetics, our income & education levels etc.

According to WHO website Climate change is the biggest health threat. Click here👈

We cannot plan and get sick but we can definitely be prepared for the financial aspect. One of the best way to prepare yourself from future health risk uncertainty is to buy health insurance.

Buying health insurance is an integral part of financial planning. It is beneficial & useful for long run. After combatting the pandemic for almost 2 years, health insurance remains paramount for a secure future.

Now let’s dig in more into the topic WHY I NEED HEALTH INSURANCE?

 

1. Increasing Healthcare costs – Our health care systems comprises both public & private providers. But mostly people prefer private service providers. The medicals cost has dramatically rose. In case of emergency people end up spending their savings which again effect their long-term plans. According to data we primarily depend on our own savings when it comes to tackling health related emergencies. Medical expense covers a wide variety of charges, such as doctor’s fees, pharmaceutical prices, diagnostics test, and so on. The price on the other hand, are greater for the general public. Even simple medical operations have grown expensive in the nation, particularly in private hospitals.

2. Changing lifestyle- The shift in our lifestyle has made us more prone to a wide range of health disorders. Commuting, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems. In today’s times, illness is occurring not just in older adults but also affecting millions of youngsters. So, when health problems are likely to occur, it is wise to have a health cover.

1.    3. Cashless Payment- Transactions have become much easier as a result of digitalization. The use of digital channels for paying premiums in the context of health insurance has become conceivable. It is one of the most significant advantages of health plan is the cashless claim facility. Under the cashless claim facility, the medical expenses are directly settled with the hospital by the insurer, subject to policy terms and conditions. A policyholder can use this facility using a health card.

 4. Coverage of Pre and Post hospitalization expense- Not only the mainstream medical cost, but also the cost of OPD (Out-Patient Department) expense, diagnostic tests have also rose in recent times which have made it even more vital for one to buy a health insurance policy. The important thing is it does not only cover the hospitalization costs but also the expenses incurred towards OPD, ambulance expense and diagnostic tests before and after a stipulated time period as prescribed by the policy.

 5. Helps Save Taxes- Payment made towards health insurance premiums are also eligible for tax deductions under section 80D of the income tax act. Individual up to 60 years of age can claim a deduction of up to Rs. 25,000.00 for the health insurance premium paid for themselves, or for their spouse or children. One can also claim another Rs. 50,000.00 as deduction if you buy health insurance for your parents aged 60 years and above.

Other question that most people ask is – what is the right age to buy health insurance?

So according to my view there is no right age- “Jab jago tab Savera”

If you take health insurance at low age you will get benefits at low premium. Premiums for a health policy increase with one’s age, that’s because the associated risk increase. Premiums for health plans are determined by the age, medical history, city of residence, etc of the insured.

 

What are the Types of health insurance?

1. Individual insurance plans: This is the most common type of health insurance plan in India. Such policy only covers an individual.

2. Family Floater insurance plans: This type of health insurance plan covers the entire family. One of the main advantages of such an insurance plan is that you need not manage different policies. Moreover, such policies are also more cost-effective than buying an individual policy for each member.

3. Senior citizen insurance plans: This policy is specially for senior citizens who are usually above the age of 60. Since the old people are more likely to make a claim, the premium is higher in such cases.

4. Critical illness insurance plans: This plan insures you for fatal diseases such as kidney ailments, heart attacks, cancer, paralysis, etc. In such cases, the policy holder receives lumpsum amount on the diagnosis of the covered illness. Such plan is advisable for those who have a history of such illness in the family.

5. Personal accident Insurance plans: Accidents are common & the expense they bring can drain all your savings. A personal accident covers the cost of medical treatment needed after an accident. Usually, such a policy offers benefits against 3 events- partial disability, total disability & death due to accident.

6. Maternity Insurance plan: There are women-specific health insurance plans. Such plans provide coverage for pre-natal and post-natal expense along with the delivery and ambulance cost. A baby cover is also provided wherein the expense related to the new born baby is covered up to a certain duration. Most maternity plans have a waiting period before they get active.

7. Unit Linked Insurance Plans: Unit linked Insurance plans or ULIPs are insurance plans that double up as investments. When you pay the premium, a part of it is utilized for providing cover to you as usual. The remaining amount of the premium is invested in a mix of equity and debt.

 

Conclusion

I personally feel that health insurance is beneficial, suppose I am paying 7,500/- as a premium & getting a cover for 3 lakhs is a good deal for me. Some people also think that it is the wastage of money what if I pay premium for that 1 year & nothing happened then my entire premium amount is wasted. Let understand this with an example.

Mr. A had taken family health insurance. He pays premium of 30,000/- annually. He get cover of 5 lakhs.

So here are 2 cases

A) If anything happened & medical cost runs in Lakhs- Mr. A will not have to worry for his medical expense because his health insurance will take care of it.

B) If nothing happened- Mr. A. will think his premium amount is wasted but at least he was not worried about the big expense due to health uncertainty for the entire year as he was relatively paying small amount for big cover.

So, guys after reading this article I guess you might have understood the importance of having health insurance. Hope you like reading it. If you need agent number for purchasing health insurance ping me in the comment section. As always if I receive any one comment, I will add the agent number in this article.