The cost of getting good quality medical treatment in India keeps rising with each passing year. The sedentary lifestyle among most of the people in the country has also given rise to lifestyle diseases. In most cases, medical treatment for illnesses leaves people’s savings significantly depleted, which then affects future savings and investments.
When it comes to India, buying life insurance to cover the life of an individual is common. However, the awareness and penetration of health insurance are woefully inadequate. Health insurance in India is not considered a necessity but often overlooked as something that is merely an expense that does not give any return.
What is health insurance?
A health insurance policy covers the insured against the cost of medical treatment. Different health insurance plans include a different type of medications, for example, a critical illness health insurance plan will cover treatment for the specified critical illnesses. A cancer health insurance plan will reimburse the insured for spends made for cancer treatments.
A health insurance policy can either be a mediclaim policy, which covers the cost of hospitalisation only or a broader health insurance policy which includes pre and post hospitalisation expenses, medical consultation expenses, day care procedures etc.
The basis of health insurance plans is reimbursement of medical treatment spends. The nature of spends that are reimbursed and the percentages of spends depends on the health insurance policy. Health insurance plans have a sum assured up to which reimbursement of expenses is done.
How is health insurance beneficial?
1. Protects savings:
One of the best advantages of health insurance is that it protects a family’s savings. In the absence of health insurance, the cost of medical treatment would have been met out of the family’s savings. With a health insurance policy, several of the medical treatment costs are met by the insurance company.
2. Covers other expenses:
Depending on the plan, the health insurance policy can cover different types of costs apart from hospitalisation spends. Some of these expenses are:
• Ambulance charges
• Diagnosis spends
• Consultation spends
• The second opinion spends
• Repatriation of remains
• Ayurveda/Unani/Homeopathy treatments
• Organ donor expenses
• Hospital cash allowance
• Home nursing allowance
• Physiotherapy spends
3. Cashless treatment:
Most insurance companies tie up with hospitals to provide cashless treatment. In cashless treatment, the insurance company directly pays the hospital the sum required for treatment. It saves a lot of effort and time for the patient and his family.
4. Can insure family together:
It is possible to take a family floater health insurance policy to cover the entire family. This reduces the hassles of buying individual policies and also ends up being cheaper depending on the number of people insured.
5. Income tax deduction:
Buying health insurance plans can give you an income tax deduction under Section 80D of the Income Tax Act. The deduction is Rs. 30,000 for insurance policies for self, spouse, and dependent children and it goes up to Rs. 50,000 for senior citizen parents, or senior citizen policyholder.
When it comes to India, buying life insurance to cover the life of an individual is common. However, the awareness and penetration of health insurance are woefully inadequate. Health insurance in India is not considered a necessity but often overlooked as something that is merely an expense that does not give any return.
What is health insurance?
A health insurance policy covers the insured against the cost of medical treatment. Different health insurance plans include a different type of medications, for example, a critical illness health insurance plan will cover treatment for the specified critical illnesses. A cancer health insurance plan will reimburse the insured for spends made for cancer treatments.
A health insurance policy can either be a mediclaim policy, which covers the cost of hospitalisation only or a broader health insurance policy which includes pre and post hospitalisation expenses, medical consultation expenses, day care procedures etc.
The basis of health insurance plans is reimbursement of medical treatment spends. The nature of spends that are reimbursed and the percentages of spends depends on the health insurance policy. Health insurance plans have a sum assured up to which reimbursement of expenses is done.
How is health insurance beneficial?
1. Protects savings:
One of the best advantages of health insurance is that it protects a family’s savings. In the absence of health insurance, the cost of medical treatment would have been met out of the family’s savings. With a health insurance policy, several of the medical treatment costs are met by the insurance company.
2. Covers other expenses:
Depending on the plan, the health insurance policy can cover different types of costs apart from hospitalisation spends. Some of these expenses are:
• Ambulance charges
• Diagnosis spends
• Consultation spends
• The second opinion spends
• Repatriation of remains
• Ayurveda/Unani/Homeopathy treatments
• Organ donor expenses
• Hospital cash allowance
• Home nursing allowance
• Physiotherapy spends
3. Cashless treatment:
Most insurance companies tie up with hospitals to provide cashless treatment. In cashless treatment, the insurance company directly pays the hospital the sum required for treatment. It saves a lot of effort and time for the patient and his family.
4. Can insure family together:
It is possible to take a family floater health insurance policy to cover the entire family. This reduces the hassles of buying individual policies and also ends up being cheaper depending on the number of people insured.
5. Income tax deduction:
Buying health insurance plans can give you an income tax deduction under Section 80D of the Income Tax Act. The deduction is Rs. 30,000 for insurance policies for self, spouse, and dependent children and it goes up to Rs. 50,000 for senior citizen parents, or senior citizen policyholder.
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