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Learn why Indians must opt for an adequate medical cover
India's Insurance Story, So Far
In March 2014, the Insurance Regulatory and Development Authority of India (IRDAI) estimated that a meager 17% of the total population of India has opted for health insurance cover. It also indicated that Indian families meet 70% of their health expenses from their own pocket.
At a time when medical costs are going through the roof, an unforeseen medical emergency can put a strain on your finances. A common fallacy is that insurance against health-related expenses is not required if you enjoy good health. Experts advise opting for a health cover early in life.
Avoid a financial crunchRead ahead to know about the need for a health insurance plan, its coverage and the benefits it offers to you and your family.
Why Should You Purchase Health Insurance?
An ideal health insurance cover safeguards your finances, and offers you the freedom to treat your medical issues with the best options available. These plans help in handling the monetary risk of health-related issues, thereby allowing you to deploy your savings in other investment avenues.
What are the benefits of Purchasing a Health Insurance Plan?
What does a health insurance plan cover?
- It covers you and your family from the financial strain of meeting with unforeseen illnesses and injuries.
- It covers hospitalization, day-care and other treatment-related costs of the insured policy members.
- 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 consultation, 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.
Claim medical expenses or go the cashless way - Treatment in Top Healthcare Facilities
- Availing Tax Benefits
You can avail tax benefits on the premiums paid for a health 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 equipmentCompromising on your health or wealth is a major risk. A well-tailored health insurance plan safeguards you 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.
