Why Purchase Health Insurance?
This is because health is still very much a personal concern rather than a public concern in our country. Though the government has set up many government hospitals where expenses are low but these hospitals several times may lack the necessary facilities and staff.
Medical emergencies are expensive. If you experience a medical emergency without insurance, it is easy to find yourself in heavy debt with seemingly no way out of the mess.
Our country is grappling with several problems, the population is burgeoning by the day, and our country is yet far from becoming a place where every citizen is provided free health care irrespective of the type of medical condition. In today’s time, health insurance has become a necessity. Most people in their twenties feel that they are safe and relatively healthy and choose to go without a health insurance. Do not make this mistake and start you search for a good and low cost insurance now.
What has the Government done to Promote Health Insurance?
Though the government has not been able to make health entirely a public responsibility it has taken certain measures to promote health cautiousness among people. One such measure is tax exemption under section 80 D of the income tax act.
The government has also taken up a macro level measure for the cause of health of its people which is increasing foreign investment stake in health insurance firm joint ventures. Due to this several world leaders in the insurance sphere are now investing in the Indian insurance sector and world standard health care, as well as global health cover, is now being made available to people through well-researched health insurance plans.
How Much Cover to Purchase?
People should take up health cover for at least that much amount which would otherwise be lost through taxation. People can save up to Rs 25,000 per year through tax exemptions by taking up health insurance, and sufficient health cover of around 10 to 12 lakh rupees can be purchased for this amount for self as well as family.
How to Choose a Health Insurer?
While choosing a health insurer the following criteria hold significance:
- Insurance firm should have IRDA license
- The insurance firm should have transparent disclosures on its portal
- The insurance firm should have an acceptable incurred claims ratio
- Insurance firm should prioritize claims settlement
- The health insurance offer should address your requirements
- Policy wordings should be clear
- A cooling period for reviewing the document should be provided
- Processes and pricing should be transparent
- Round the clock emergency assistance
- Helpful and informed staff
What is Covered Under Health Insurance?
Health insurance policies may have basic and optional features. The subscriber should carefully understand the policy offer and thoroughly read the policy document before agreeing to become a policy holder and weigh the offer against his/her specific requirements. Health insurance policy may include the following features:
- Death benefit paid to nominee in case of death of policy holder
- Sum assured, or part paid in case of occurrence of covered health condition
- Cashless treatment facilities in networked hospitals
- Reimbursement of incurred expenses for covered conditions
- Cover for accidental outcomes
- Cover for critical illnesses
- A wide range of minor and major medical conditions are covered
- Hospitalization, pre and post hospitalization expenses cover
- Several optional cover features
When to Purchase Health Insurance?
It is advisable to purchase health insurance as soon as eligibility age is reached as delaying leads to increase in premium amount. Minors may be covered by health insurance floater policy taken up by their parents, but they need to avail health insurance cover as soon as they outage the family floater age criteria conditions and no more remain dependent on their parents and prior health insurance cover ceases. Buying health insurance at a early stage of your life makes sense as the premium is lower. At later stages, the chances of health issues increase and hence does the insurance premiums.
What is the Tenure of Health Insurance Policy?
Health insurance policy can be of short as well as long-term tenure. Short term health insurance plans have tenures ranging from 1-2 years, and long term health insurance policy tenures can range from 5 to 15 years. Policies can be renewed at the culmination of their tenures; several policies offer lifelong renewal.
Despite the medical benefits of health insurance, the policy premium that you pay is tax exempted. In fact, the premium paid for not only you and your family but also your elderly parents makes you eligible for income tax exemption under section 80D of Income Tax Act, 1961.
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