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Insurance Article

Know How to Protect your Savings with Health Insurance

February 10 2019

Fight illness without blowing away all your savings with the help of health insurance

We’ve all heard the popular saying, ‘health is wealth’. From working out in gyms to wellness retreats to maintaining healthy eating habits, staying fit has become a cardinal aim of our life. Improving personal health competence has certainly been a crucial agenda in people’s life, regardless of their age, gender and occupation.

While taking care of your health should be the top priority, it bodes well to stay prepared for the unexpected. And that’s why health advisors always recommend buying a health insurance plan as your second layer of defence. It secures you against the risk of medical emergencies that could drain all your finances in one go and burn a large hole in your pocket.

Apart from covering the rising costs of availing healthcare facilities, health insurance has a host of other benefits. Listed below are some of reasons as to how a health insurance policy facilitates greater savings in times of distress:

Covers your Medical Expenses

When you or your family member needs urgent medical care, the last thing you would want to worry about is the medical costs. One of the biggest advantages of having a health insurance plan is that it covers you against unforeseen medical expenses in the event of an unexpected situation. With the right insurance policy, you don’t have to worry about any medical expenditure, be it post-hospitalization expenses, ambulance charges, doctor’s fees etc.

Hence, by choosing the right blend of features, you can be assured of a 360-degree health protection cover for you and your loved ones. Many insurance companies have started offering riders with the main policy or separate health plans to cover excluded medical conditions such as maternity benefits, personal accident insurance and critical illness cover etc. With these costs covered under your health insurance policy, you need not worry about the finances in case the calamity strikes.

Financial protection against critical illnesses

Almost every health insurer provides coverage against critical illnesses such as cancer, kidney failure, stroke, etc. either with the policy or as an add-on cover that can be added to your health insurance plan. In case you are diagnosed with any of these diseases as mentioned in the predetermined list of your policy, the insurance company will give you a lump sum amount to meet all your treatment costs and tackle other financial obligations.

Selecting the right policy with the right amount of coverage, thereby helps you to prepare for the worst. Rather than waiting for an illness to strike, it’s prudent for you to stay proactive and plan for the future. Additionally, purchasing a policy at a young age will not only give you the benefit of lower premiums but also more comprehensive coverage and hence, facilitate more savings if you’re struck by a malady.

Cashless Mediclaim facility

When you’re undergoing the treatment in a hospital, your family might find it very difficult to arrange immediate cash to pay the hospital bills. To make sure you don’t have to face such a situation, many insurance providers offer cashless Mediclaim facility at network hospitals which means you can get the best possible treatment without worrying about the finances.

All you need to do is fill up the Mediclaim form to get cashless benefits at partner hospitals with the insurance company.

No-Claim Bonus

Often, there are years when individuals do not claim any medical expenses. Hence, many Insurance companies have introduced the benefit of ‘No-Claim Bonus’ for every claim-free year. It means that in case an individual completes a year without claiming any medical expenditure, they are awarded with a no-claim bonus in form of discounts on premium amount for the next year.

Additionally, few companies also offer an increase in the base insurance amount for every claim-free year. Not only does this keep the customers happy but also adds to their savings.

Tax Benefits

Another way health insurance contributes towards greater savings is by offering tax benefits to the policyholders. If you are an individual under 60 years of age, you can claim tax benefits of up to Rs. 25,000 on paying health insurance premiums for yourself, your spouse and your children u/s 80D of The Income Tax Act, 1961. You can avail an additional tax deduction of Rs. 25,000 for paying health insurance premiums for your parents.

Now that you know how health insurance can protect your savings, you can take a step in the right direction by purchasing health insurance plans for you and your family. Keep these benefits in mind and explore the options to select a policy that suits you best.

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