Does Health Insurance Really Benefit Your Family?

Meeting Rising Healthcare Costs

Increasing costs in the healthcare sector over the last few years are pinching the Indian pockets. According to a report by the National Sample Survey Office (NSSO), India's per capita out-of-pocket (OOP) expenditure towards medical costs has gone up by 60% from 2005 to 2010. The per capita spending on medicines and hospitalization costs has also increased twofold over the same period.

In such a scenario, a comprehensive health insurance plan helps curb your expenses by covering costs due to hospitalization, diagnostic tests, doctor consul.tation, expensive medicines, as well as post-hospitalization treatment.

Availing Cashless Hospitalization

Most insurance companies provide a facility of cashless hospitalization where you can avail treatment at a network hospital (that has a tie-up with your insurer) without paying cash to the hospital. Your insurance company will settle the costs directly with the hospital; however, prior authorization is required from the concerned Third Party Administrator.

This service is helpful when you are unable to organize short-term funds or if you fall ill in a city where you can't arrange for immediate funds. Cashless hospitalization reduces stress and gives you access to the best healthcare services easily.

You can avail tax benefits on the premiums paid for a health insurance plan. The following changes have taken place according to the budget for the year 2015-2016, Section 80D of the Indian Income Tax Act:

• Allows a rebate of up to Rs. 40,000 per individual
• Tax rebates of up to Rs. 15,000 when purchasing medical insurance for your family
• Tax rebates of up to Rs. 20,000 if the purchaser is 60 years and above
• Additional rebate of up to Rs. 15,000 when purchasing medical insurance for your parents
• This return increases to Rs. 20,000 if your parents are senior citizens (60 years and above)

Access to cutting edge medical equipment

Compromising on your health or wealth is a major risk. A well-tailored family health insurance plan safeguards you and your family against unplanned expenses and gives you peace of mind. Ask your insurance company for any additional benefits they provide. Choose the best options that suit your income and your family's needs.