There is an alarming rise in non-communicable diseases in India. Moreover, a recent study by Insurtech company Plu points out that medical inflation has reached 14% in India. If we look at the Out-of-Pocket Expenditure (OOPE) in total Health Expenditure in India, it stands at 47.1%. Although there has been a decline in OOPE, these statistics point out the importance of investing in a health insurance policy.
A health insurance policy not only covers hospitalisation and treatment costs but also includes day care procedures and alternative treatments. A significant number of health insurance plans offer a cashless treatment facility across a wide network of hospitals in India, which is incredibly beneficial in emergencies. Several health insurance policies also cover the cost of hospital room rent during your stay.
Apart from the benefits of health insurance discussed above, it is also a wise financial investment. This is because health insurance is also a tax-saving instrument.
So, let’s look at the answer to the question, “Is health insurance worth it?”
Is investment in health insurance worth it?
Here is why purchasing a health insurance policy is worth it.
Health insurance not only covers hospitalisation costs but also includes OPD visits, diagnostic tests, medications, and both pre- and post-hospitalisation expenses.
Most healthcare expenses are for treatments that do not require a 24-hour hospital stay. Nowadays, even such procedures are covered under health insurance policies.
Nowadays, health insurance plans also cover alternative therapies (AYUSH) like Ayurveda, Unani, Homoeopathy, etc.
The facility of availing cashless hospitalisation simplifies the process of getting quality healthcare at a healthcare establishment of your choice during emergencies; the insurer settles your medical bills directly with the hospital, and you don’t have to worry about paying anything upfront.
Healthcare plans offer room rent coverage. The exact coverage for room rent depends on each policy; some policies offer full coverage, and others a specific percentage.
Policyholders can avail of a tax rebate on premiums paid for a healthcare plan under Section 80D of the Income Tax Act, 1961.
- If you pay health insurance premiums for your family and your age is less than 60 years, you are qualified to receive a tax deduction of Rs 25,000.
- If you pay health insurance premiums for yourself and your parents aged less than 60, you can claim a tax rebate of Rs 50,000 (Rs 25,000 for yourself and Rs 25,000 for your parents).
- If you pay for your parents' health insurance, too, you can claim a Rs 75,000 deduction if they are senior citizens. (Rs 25,000 for yourself and Rs 50,000 for your parents).
- If you and your parents are both above 60 years old, you can claim about Rs 1,00,000 in deductions. You can claim Rs 50,000 each for you and your parents.
Conclusion
Now that you know why health insurance is a worthy investment, consider opting for a comprehensive healthcare plan. Apart from coming to the rescue in a health crisis, a health insurance policy is also a tax-saving instrument. Health insurance is not an expense but a crucial investment in today’s times, when both the incidence of diseases and healthcare costs are only rising.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.