Why buying health insurance vital in today’s era?

health-insurance-policyBuying an insurance policy helps one to be financially prepared against health risks.

According to studies in the past, the rise in the cost of medical treatment in India is estimated to have been in the range of 18-24 per cent. This has primarily been due to a rise in the cost of medicines, medical diagnostic equipment and hospitalisation charges.

Therefore, the need for adequate health insurance has gained urgency, with an emphasis on choosing the right health plan.

In the coming years, there will be a surge in medical insurance, which will improve health outcomes. According to Frost and Sullivan, the healthcare Industry in India is expecting to mark a CAGR of 16.5 percent by 2020.

We all are aware that at any moment we can face a serious health issue, the treatment cost for which can be huge. This makes it imperative for us to insure ourselves against ill-health.  Here is why you should have an adequate health plan:

  • Health insurance protects us from high and unexpected medical costs: Since medical costs have risen dramatically in recent times, consumers end up spending their savings for treatment. Therefore, with an emergency health insurance plan, we can avoid crippling medical expenses by investing in a health insurance premium.
  • Coverage of pre and post-hospitalisation expenses/additional benefits: An individual can claim both pre and post-hospitalisation expenses ranging from medical tests to the charges incurred by the policy-holder 30 days prior to his/ her admission to any hospital, which fall within the ambit of pre-hospitalisation expenses. Post hospitalisation expenses include all costs of diagnostic charges, consultation fees, medicine costs and hospital stay. It is important to keep in mind that the number of days which are covered tends to vary depending on the health insurance provider.
  • Tax benefit of health insurance: By investing in a health insurance plan one can save on taxes under Section 80D of the Income Tax Act, under which health insurance premium is tax deductible. So, by buying health insurance, you not only save your taxable income but also avoid large medical expenses.
  • Promote Healthy Living: Not only do we end up neglecting our health due to a hectic lifestyle and food choices; we end up incurring personal risk in our daily living. Here we can periodically take a pause, as a health insurance policy also provides options for free health check-ups, based on your previous (NCBs).

It is time to make a smart step as there is a dire need for health insurance.

Inputs by: Ankit Agarwal, Managing Director, Alankit LTD

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