Health insurance is a policy that covers medical and surgical expenses for the insured individual in exchange for a premium. It helps protect against high healthcare costs and ensures access to necessary treatments without financial strain. Different types of health insurance plans include individual plans, family floater plans, group plans, older person plans, and critical illness plans. By investing in a suitable health insurance plan, you can safeguard your finances and access quality healthcare for yourself and your family.
Benefits of Health Insurance
In today’s fast-paced world, unexpected illnesses can strike at any time, leaving families with soaring medical bills. This is where health insurance comes in as a crucial financial safeguard. By paying a small premium to the insurer, comprehensive health insurance coverage can be secured. With this coverage, sudden medical expenses are covered and savings remain protected. Ultimately, health insurance provides peace of mind so you and your family can focus on enjoying life without worry about financial turmoil due to long-term treatments or unforeseen medical expenses.
The Need for Health Insurance
There are three key reasons why health insurance is essential:
Insufficient Savings for Healthcare
Getting medical attention at a leading healthcare institution can come with a significant price tag, and many individuals find it challenging to manage their finances when a family member faces a severe illness. In India, health insurance coverage eludes almost 44% of the population. Consequently, people often exhaust all their savings, take out expensive loans or even sell off assets to cover for treatments. Nevertheless, investing in health insurance provides an intelligent option that shields both your financial stability and physical well-being simultaneously.
Rising Healthcare Costs
The cost of healthcare is rapidly increasing, making health insurance an absolute necessity. In India, the medical trend rate – which signifies the growth in per-person expenses due to inflation – is expected to double the inflation rate. By obtaining a fixed benefit health insurance policy, individuals can confidently combat critical illnesses such as cancer and heart-related conditions.
Various Hospital Costs
When receiving treatment at a hospital, there are many costs to consider beyond just the surgery. Doctor’s appointments, medication expenses, diagnostic tests, and post-operative care can greatly increase medical bills. To alleviate the financial burden, health insurance plans cover various ailments and surgeries in addition to other aspects of medical treatment.
Advantages of Fixed Benefit Health Insurance Plans
Upfront Payment without Medical Bills
Fixed benefit health insurance plans provide coverage for medical expenses upon diagnosis of the disease without proof of hospitalization or treatment cost like hospital bills. These policies offer complete financial protection for both pre- and post-hospitalization expenses, with no restrictions on time duration or limits.
Treatment at Your Preferred Facility
Proper health insurance enables individuals to access medical treatment both in India and other parts of the world. In particular, fixed benefit health insurance plans, such as Heart/Cancer Protect, provide a lump sum payout upon diagnosis. This helps policyholders choose their preferred treatments globally based on convenience.
High Coverage at Low Cost
Fixed benefit health insurance plans provide extensive coverage while charging a lower premium, offering a money-saving solution that reduces your worries even if faced with a severe illness.
Automatic Increase in Sum Assured
Health insurance can effectively manage medical expenses while providing wider coverage for claim-free years. Some plans may even offer discounts on first-year premiums for couples with mutual coverage.
Health Insurance – Tax Benefits
Fixed benefit health insurance plans have the advantage of offering tax benefits. Depending on your age and the ages of your family members, you may be eligible for deductions on health insurance premiums paid as per Section 80D of the Income Tax Act.