Importance Of Health Insurance – All You Need To Know
Are you one of those who rarely gets sick and feels like you’re healthy enough to skip out on investing in health insurance? Well, you need to revisit that thought as early as today! Many people in their 20s and early 30s tend to cut down health insurance from their budget because they don’t end up seeing their doctor as often as others or have a tight financial situation. But all those people forget that medical emergency don’t kindly knock at your door before they enter it, they tend to break in. Therefore, you need to know the importance of health insurance.
Keeping in mind the rising medical costs and the spurt of lifestyle diseases, a medical emergency can happen to anyone, anytime, and impact an individual emotionally and financially. Financial advisors, therefore, suggest that it is prudent if you buy a health plan early in life. Read along to know the importance of health insurance in your life.
1. Helps During A Medical Emergency
Medical emergencies have the potential to burn a big hole in your pocket (In some cases, explosions). Suppose you have the misfortune of undergoing a medical emergency without insurance. In that case, it is easy to find yourself with a crippling amount of medical debt, and seemingly no way out of the mess. On the other hand, it’s hard to see why the optimists and health freaks who take good, preventative care of themselves might need health insurance.
However, missing that last stair at home and dislocating an ankle, or having an unexpected accident on traffic-induced roads, and breaking an arm could cause an injury that costs you thousands of rupees in medical bills. That’s not all – the expenses can quickly climb higher if you need surgery or any ongoing rehabilitation. In such unforeseen circumstances, even with a health insurance, you may find it challenging to pay for health care costs. Thinking about all these factors doesn’t make you cynical; it only makes you cautious, wise, and feel safeguarded.
2. Lifestyle Changes
There is a plethora of reasons to have a health insurance policy in place. The significant shift in our lifestyle has made us more prone to a wide range of health disorders. Commuting, hectic work schedules, poor eating habits, quality of food we consume, and rising levels of pollution have increased the risk of developing health problems. In such cases, even if you’re not one of those ‘I need a sick-leave’ kind of people, your surroundings and choices might make you prey to this.
3. Because Your Employer Cover Is Not Sufficient
With an exponential increase in healthcare costs, the need for health insurance cannot be overstated. Check the price of a week’s hospitalized for a regular illness and then compare it with your company’s coverage.
Most likely you’ll be persuaded to buy a cover immediately. Still not sure? Think about when you grow older and might need more frequent medical attention. For those who want to start their journey now, here’s an affordable health insurance kit by digibank by DBS.
4. Income Tax Benefits
Payments made towards health insurance premiums are also eligible for tax deductions under section 80D of the Indian Income Tax Act. Individuals up to 60 years of age can claim a deduction of up to INR 25,000 for the health insurance premium paid for themselves, or their spouse or children. One can also claim another Rs 50,000 as a deduction if you buy health insurance for your parents aged 60 years and above.
This deduction will be available concerning payments towards annual premium on either your health insurance policy, preventive health check-up of a senior citizen, or the medical expenditure for every senior citizen. So overall, if you are paying the health insurance premiums for your senior citizen parents, you can avail total deduction up to INR 75,000 (INR 25,000 + INR 50,000), from the INR 55,000 (INR 25,000 + INR 30,000) earlier.
5. Coverage Of Hospitalization Expenses
Besides mainstream medical costs, even the cost of OPD (out-patient department) expenses, and diagnostic tests have risen in recent times which have made it even more vital for you to buy a health insurance policy. It is noteworthy that the medical policies cover not only the hospitalization costs but also the expenses incurred towards OPD and diagnostic tests before and after a stipulated period as prescribed by the policy.
6. Additional Benefits
You can also enjoy benefits like ambulance coverage, coverage for day-care surgeries, coverage for health check-ups, and vaccination expenses under health insurance. These days’ insurance companies also offer health insurance for current pandemic reliefs. Check your terms carefully before signing up.
It’s Never Too Early To Get Insured
There is a common dilemma among people about the right age to buy a health insurance policy. However, there’s no right age to buy one. But, if you buy a health insurance policy at an early age, you will have to pay less for the plan.
Premiums for a health policy increase with your age, and that’s because of the associated risk increases. Further, premiums for health plans are determined by the age, medical history, city of residence, etc. of the insured. So, if you buy a health plan early, it will help you save on the premiums you will pay and will be accessible on your pocket while it saves you the horror of potential unending hospital bills.