India has a rapidly growing population with an increasing need for medical facilities. In such a scenario, it is essential for every Indian to have health insurance. Health insurance is a policy that covers the cost of medical expenses incurred by an individual or a family. Here are five reasons why health insurance is important for every Indian.
- Protection against Rising Healthcare Costs
With the advancement of medical technology and facilities, the cost of medical treatment has increased drastically. In the absence of health insurance, the expenses incurred on medical treatment can be overwhelming, and it can lead to financial strain. Health insurance provides financial protection against the rising healthcare costs. In case of a medical emergency or illness, the policyholder can claim reimbursement for the medical expenses incurred, or the insurer may directly settle the bills with the hospital. Having health insurance assures that the medical expenses do not burn a hole in the policyholder’s pocket.
- Access to Quality Healthcare
One of the reasons why health insurance is important is that the policyholder has access to a wide network of hospitals and medical facilities. The insurance companies have tie-ups with hospitals and clinics, where policyholders can avail of cashless treatment. This means that the policyholder does not have to worry about arranging the funds for medical treatment. They can receive treatment without any hassle, and the insurer will settle the bills directly with the hospital. This ensures that the policyholder receives timely and quality healthcare without worrying about the financial aspect.
- Tax Benefits
Health insurance not only provides financial protection and access to quality healthcare but also offers tax benefits. The premium paid towards health insurance is eligible for tax deduction under Section 80D of the Income Tax Act, 1961. The premium paid for health insurance for self, spouse, and dependent children up to a maximum of Rs. 25,000 is eligible for deduction. Additionally, the premium paid for health insurance for parents, who are senior citizens, is eligible for deduction up to Rs. 50,000. These tax benefits can reduce the policyholder’s tax liability and increase their disposable income, and are among another big reason why health insurance is important for those who are keen on prudent tax and long term financial planning.
- Peace of Mind
In today’s world, where the risk of illnesses and medical emergencies is high, having health insurance provides peace of mind. It ensures that the policyholder and their family are financially protected in case of a medical emergency. The policyholder can concentrate on their recovery without worrying about the medical expenses. Additionally, health insurance also covers pre and post-hospitalization expenses, which provides a sense of relief to the policyholder and their family.
- Protection against Critical Illnesses
Apart from covering the cost of medical treatment, health insurance also provides protection against critical illnesses. Critical illnesses like cancer, heart attack, kidney failure, etc., can be financially draining, and the expenses can be beyond the capacity of an individual. Health insurance plans offer critical illness cover, which provides a lump sum amount on the diagnosis of a critical illness. This amount can be used for medical expenses, to pay off debts, or to support the policyholder’s family during the treatment period. This ensures that the policyholder and their family are financially protected in case of a critical illness.
While it is important for every Indian to have health insurance, it is also crucial to understand the various types of health insurance plans available in the market. Health insurance plans can be broadly classified into two categories: indemnity plans and fixed benefit plans.
Indemnity plans are also known as reimbursement plans. Under this plan, the policyholder can claim reimbursement for the medical expenses incurred during hospitalisation. The policyholder has the freedom to choose the hospital and the doctor. The insurance company will reimburse the expenses up to the sum insured, subject to the terms and conditions of the policy.
Fixed benefit plans, on the other hand, provide a fixed sum of money on the diagnosis of a specified illness or medical condition. Unlike indemnity plans, the amount paid is not based on the actual expenses incurred. Fixed benefit plans provide a lump sum amount that can be used for medical expenses, to pay off debts, or to support the policyholder’s family during the treatment period.
In addition to these two types of plans, there are also specialised health insurance plans available in the market. For instance, there are plans that provide cover for maternity expenses, plans that cover pre-existing illnesses, plans that provide coverage for specific illnesses like cancer, plans for senior citizens, etc.
When choosing a health insurance plan, it is essential to understand the policy’s terms and conditions, including the exclusions, deductibles, and waiting periods. It is advisable to compare different plans offered by various insurance companies before finalising one. One can use online comparison tools to compare the plans based on the sum insured, premium, coverage, etc.
Chola MS Health Insurance is a popular health insurance provider in India, known for its comprehensive coverage, customer-centric approach, and quick claim settlement. With a wide range of plans and add-ons, Chola MS Health Insurance is best suited for individuals and families looking for reliable and affordable health insurance. You can browse various plans, understand the varying benefits and make a wise choice on what suits you best from among the options available from Chola MS Health Insurance.