It is rightly said, "Health is Wealth". Good health is very important to lead a happy, stress free life and it is the duty of the every individual to take care of the matter seriously. Remember that life is full of uncertainties. No one can predict what will happen in the next hour. Hence it is your duty to make arrangements to fight off the impact of emergency situations.
As per a health survey reported in the year 2008 by Med India, an Indian health website, only about 3 per cent of the entire Indian population holds an insurance policy. Educating people about the significance of buying health insurance has become the need of the hour.
The slump economy is no secret. The expenses are ever rising and earnings have reached an all time low. Paying hospital bills can be a pain in the neck. One has to drain all the savings to pay hospital bills. Buying a health policy provides you with the ability to afford high quality healthcare facilities and enjoy tax benefits too.
The Health Insurance Concept in India
A health or medical insurance covers expenses related to hospitalization due to an ailment or an accidental injury. A standard insurance plan covers comprehensive costs of hospitalization including the following mentioned below:
Health examination costs (pre-hospitalization) such as medical tests, fees for doctor, ambulance costs, hospital room, boarding expenses, surgery consumables, Medical tests etc. You may also be benefitted by reimbursement of costs incurred post hospitalization for recovery such as follow up doctor visits, medicines, diagnostic tests, etc.
Buying a health or medical insurance policy ensures you quality financial support during the time of a health emergency and emotional breakdown. The Functioning of Health Insurance
In India, health insurance is usually offered as a yearly policy. One requires renewing each year. The policy is also subject to certain exclusions and waiting periods. To understand this, you need to read the terms and conditions of policy carefully before signing the dotted line. There are two ways to claim Health Insurance; Cashless or Reimbursement.
Each health insurance organization in India has a network of hospitals where they have a special arrangement for direct billing. This indicates that an insurance company will directly pay the admissible claim amount to the hospital. Now when the insured person is admitted in a 'Network Hospital', the relative of the individual must submit a cashless card issued by the insurance company to the hospital billing desk. The hospital will process cashless admission for the patient. The hospital expenses will be paid by the insurance company. The insured person will have to pay only expenses excluded under the Health Insurance Plan.
In the event where you happen to be admitted in a hospital out of the insurance company network, you will require making payments on your own to the hospital and submit the papers to the insurance company along with the Claim Form for reimbursement.
Importance of Buying Health Insurance
With medical costs rising on a regular basis, it has become difficult for people to manage expenses such as doctors visiting fees, hospitalization charges, expensive medicines, diagnostic tests etc. Buying a health or medical insurance policy will take care of your expensive health care bills within the permissible limitations of the policy.
Focus on Treatment
A health emergency needs complete rest, relaxation, and highest levels of care. Worrying about paying bills and can deteriorate your health further. With an insurance plan taking care of your bills, you just need to focus on getting the best treatment.
This definitely serves as icing on the cake. Under section 80D of the Income Tax Act, 1961, you can avail tax deduction up to Rs 25,000 per annum on purchasing health policy for self, spouse and dependant children. Senior Citizens (60 years and above) can avail deduction up to Rs 30,000. Additionally, you can also avail deduction of Rs 25,000 if you buy a health insurance for your parents. For senior citizens (60 years and above), the deduction is available up to Rs. 30,000.
To sum up, with an insurance plan in hand, you can have the best of health treatment without worrying about expenses. Buying a health insurance policy can help you lead a happy, health and peaceful life.
Tips for Buying the Right Insurance Plan
The term 'perfect plan' doesn't exist. A plan that respects your needs and budget will make for a perfect health insurance plan. Understand your needs well and invest in a plan is fulfils them.
- Aren't you looking forward to secure your old age? According to recent reports, healthcare inflation has reached 20%. To keep yourself protected, you must go for a decent sum of insurance. In case, you don't feel like taking a lot of financial burden at present, go for a premium of around 25 per cent of your monthly salary. This is affordable and works out for a decent long term cover facility.
- Have the insurance company provide you with the details of the policy. Make sure all terms and conditions of the policy are mentioned in the documents offered. Be careful before you sign the dotted line.
- You have a health or medical insurance policy through your employer. Good! But it is not wise to depend solely on health insurance from your office. The cover terms changes each year as per the claims experience and financial plans of your employer. At the end of the day, you may suddenly discover that the cover offered is way too low to fulfill the health care requirements of you and your family.
- Before buying a plan, you must check the maximum renewal ceasing age of the policy. This is exactly the age when your policy will discontinue. These days, you can get policies that can be renewed for lifetime. These are the best option for ensuring excellent health benefits.
- Make sure you devote quality time in finalizing a good health insurance plan. The same rule applies when choosing an insurance company. Look for an advisor who would provide you unbiased advice on a number of leading health insurance companies in India.
The Indian health insurance sector is a full-grown industry. Companies are introducing various products keeping in mind the increasing demand among consumers. Health care is a primary concern among people and increasing prices of these facilities have inspired people across the nation to buy a good medical insurance plan and ensure safety in difficult times. Finding the best health insurance or mediclaim policy from a reputed company will help you get full value for money and adept assistance during emergency.