The Importance of Buying the Right Medical Insurance
Our health is precious, but due to rising pollution, chaotic schedules, and late work hours, it’s being affected greatly, which has resulted in the necessity of owning a medical insurance policy. A health insurance cover provides a financial safety net against medical expenses. Facing healthcare emergencies without a health insurance plan in your corner will lead to you getting knocked out metaphorically and financially.
With the ongoing COVID-19 pandemic, it has become even more crucial to have medical insurance. There are several reasons why you should purchase the correct medical insurance plan, which includes:
As of 2019, medical inflation in India was growing twice at overall inflation. Add the ongoing pandemic to the picture; medical costs are rising like never before. If you do not have the right health insurance in today’s times, a medical emergency can demolish your savings and financially burden you. Thus, making it vital to have the right medical insurance plan in place for you and your family.
Our lifestyles have taken a 180-degree shift from yesteryears with sedentary routines, unhealthy eating habits, excessive smoking and drinking, and crazy work hours. As a result, there has been a massive rise in chronic diseases among the younger generation. According to World Health Organization (WHO), the proportion of global deaths attributed to chronic diseases is projected to rise to 70% by 2030. Hence, you must purchase a medical insurance policy as it will provide you with efficient protection against medical expenses incurred due to chronic diseases.
Coverage of Pre and Post-Hospitalisation Expenses
Apart from regular medical costs, there has also been a rise in the costs of diagnostic tests and OPD (out-patient department) expenses. Over the past few years, health insurance providers have expanded their coverage to include new expenses and treatments. Some newly added benefits were the coverage of OPD expenses and diagnostic tests. Therefore, purchasing the right medical insurance will also provide cover for these expenses. These expenses are also known as pre and post-hospitalisation expenses and coverage is provided for them for a fixed duration.
Pre-hospitalisation expenses incurred 30-60 days before hospitalisation are covered. On the other hand, post-hospitalisation expenses incurred within 60-120 days of being hospitalised are covered. The duration depends on the insurance policy that you purchase.
According to Section 80D of the Income Tax Act of 1961, policyholders are entitled to tax deductions due to payment made towards medical insurance premiums. If you are paying health insurance premiums for yourself, your spouse, and your children, you can claim a tax deduction of up to ₹25,000. If you are also paying the medical insurance premium for your parents, you can claim an additional tax deduction of up to ₹50,000.
However, if you are a senior citizen and are paying the medical insurance premiums for you and your spouse, you can claim a tax deduction of up to ₹50,000.
Apart from this, you can also claim a tax deduction of up to ₹5,000 for expenses incurred towards preventive annual health check-ups.
If you play your cards right and purchase the right medical insurance plan, you would be rewarded with the advantage of lifelong renewability. Some health insurance policies have a restriction on the maximum age for renewal, which ranges around 65-70 years. This means you would have to buy another policy after crossing this age. Additionally, the premiums will be expensive due to your age and higher risk for the insurer. Thus, buy a medical insurance plan that provides you with lifetime renewability.
Cover for COVID-19
Due to the COVID-19 pandemic, insurance providers have begun to incorporate coverage for this pandemic. Hence, before you buy a health insurance policy ensure it offers you comprehensive cover for COVID-19. It is important to note that this cover has a waiting period of 15-30 days.
Medical Insurance – Need of the Hour
Medical insurance has become a necessity rather than a luxury. Every person should have a Care health insurance policy to protect themselves from this deadly virus. You must purchase the right medical insurance policy because only then will you be able to get comprehensive coverage and additional advantages at affordable premiums.
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