We all agree that “health is wealth” but do little to understand health dynamics. We tend to put little or no thought into tackling an illness or staying fit. Most of us have become accustomed to an optimistic approach that nothing will happen to us, which is why we rely on the group insurance plan offered by employers. However, consider the increasing cases of lifestyle-related diseases and the rising cost of healthcare in the country. You will realize that your group medical cover will not suffice in case of an illness. Here is how you can protect your savings by investing in health insurance.
Cover the basics
The main concern behind health insurance is the financial implications of medical emergencies. Suppose you have the right type of medical insurance. In that case, it will cover the cost of hospital charges and provide for the pre-hospitalization and post-hospitalization expenses. A basic cover will ensure that hospital bills are the last thing you mind in an emergency. The insurance will give several cashless options, making it easier for you to access quality healthcare.
Be prepared for the worst.
We live when we are prone to serious illnesses, including cancer and heart disease. Group health insurance might not be enough to tackle these issues. Hence, when you choose online health insurance with comprehensive coverage, you are preparing for the worst. Health insurance premiums are cheaper if you begin planning at a young age. You can also opt for critical illness covers to prepare yourself for serious health issues.
A great benefit of health insurance is the tax benefit. You can save up to INR 25,000 on the premium paid for yourself, your spouse, and your children. This exemption is available under Section 80D of the Income Tax Act, 1961. Further, if you are paying a premium for your dependent parents, you can get an additional benefit of INR 25,000 if your parents are below 60 and INR 50,000 if your parents are above 60.
No claim bonus
You can benefit from a ‘no claim year’ in your health insurance plan if you do not make any claims throughout the year. You can enjoy a 10% bonus of the sum assured for each claim-free year. The bonus ensures that you are rewarded for staying healthy.
Investing in health insurance ensures that your savings are not drained in a medical emergency. You can provide complete coverage from your health insurance policy. Compare different your financial goals, age, and health condition in mind. You will be able to get extensive coverage at a low premium. Consider the possibility of a critical illness, and then opt for a vital condition cover to ensure you are always protected. You must understand that health insurance is not an option but an absolute must for individuals of every age.