With increasing health problems and lifestyle diseases, it is essential to realise the importance of a health insurance policy. In India, healthcare is a neglected sector, and it has not realised its full potential. India has the lowest health insurance penetration in the world. The ever-increasing healthcare prices and rising medical costs make it necessary to have a financial backup in case of medical emergencies.
Some Facts and Figures About Insurance in India
A survey conducted by the National Survey Office in 2013-14 showed that about 36 million people in India spent more on their healthcare than their annual per capita consumption.
Approximately 65 percent of people in India spend total healthcare expenses out of their pockets which traps them in a debt game.
Due to insufficient fund allocation to the healthcare sector, about 7 percent of the total population has gone below the poverty line.
Due to a lack of awareness and illiteracy, people are not aware of the benefits and importance of health insurance, but it is an integral part of financial planning. It is necessary to get the best health insurance in India considering the rising healthcare costs and save yourself from financial losses.
Health insurance is a type of insurance that takes care of the insured’s medical expenses. There are different types of health insurance policies that you can choose from, such as individual health insurance, family health insurance, critical illness cover, etc., offering various add-on benefits.
5 Reasons why you should avail health insurance
Here are a few reasons to get the best health insurance in India and better understand the policy before buying one.
Unhealthy lifestyle and resulting illnesses
Technology has resulted not just in the advancement of living standards but has also led to an increase in lifestyle disorders affecting the heart, lungs, and liver, causing various illnesses such as diabetes, blood pressure, cancer and stroke. With rising pollution, respiratory diseases have also increased. Sedentary lifestyles, stress, and unhealthy food habits have exposed people to obesity and related problems.
These problems were more prevalent among the older generations and are now rampant in the younger population. Such reasons are enough to get health insurance as soon as possible.
Health insurance covers hospitalisation expenses and offers annual health check-ups and preventive care, including counselling, screenings, and vaccines.
Income Tax benefits
Under section 80D of the Indian Income Tax Act of 1961, payments rendered towards health insurance premiums are eligible for a tax deduction. Deduction of up to INR 25,000 can be claimed by individuals aged 60 and below for health insurance premiums paid by them.
Also, a claim of INR 50,000 deductions can be made if you buy health insurance for your parents aged 60 years and above. Buying health insurance at a younger age will allow you to take tax benefits for a longer period.
Get pre and post-hospitalisation expense coverage
One of the most important reasons to buy health insurance is to cover hospitalisation charges and pre-or-post-hospitalization costs. Pre-hospitalization expenses occur before the hospitalisation of an insured person, and post-hospitalization expenses are expenses after the insured gets discharged. These include blood tests, MRI and other scans, ultrasound, doctor’s consultation etc.
Mainstream medical costs, diagnostic tests, and OPD expenses are covered under health insurance if your policy states it. Individuals can claim pre-and post-hospitalization expenses by submitting original bill receipts, doctor’s certificates, and discharge summaries.
Reimbursement for Rising Medical Cost
With an increase in living expenses, medical expenses have also increased dramatically. A medical emergency can leave a patient, and their family devastated without health insurance. Expensive treatment can take away all of your savings and hard-earned money. But with health insurance, you don’t have to worry about the medical cost as it covers it all for you.
Many health insurance policies also cover daycare expenses, including medical costs done in a hospital while being there for less than 24 hours.
Purchasing insurance at a young age has huge benefits
Buying a Health Insurance policy at a younger age gives you access to better health coverage. And it can be beneficial for planning your finances in a better manner. You can focus on other long-term investments with a health insurance policy intact for emergency medical care. Since you are younger and healthier, you can get better policy and premium options with lower rates and more extensive coverage options. Niva Bupa health insurance is among the best health insurances, offering comprehensive coverage and various benefits for better financial and healthcare security.
The Bottom Line
Due to rising health problems and particularly after the Covid-19 pandemic, the need for health insurance has increased subsequently. It can help you get quality treatment which aids in smooth and quick recovery. Before buying health insurance, considering the above points can help you make up your mind to purchase insurance and choose a health insurance policy as per your needs.