Health insurance–Why Do You Really Need One?
Updated On Dec 21, 2020
Most people think that adopting medical insurance and paying the premiums are a mere waste of money. But the fact is that the true advantage of health insurance shows off during unexpected diagnosis of a critical illness or when the doctor suggests surgery and hospitalization treat an ailment.
Medical emergencies are quite expensive and are hard to pay off with one's savings. But with health insurance at hand, it is possible to handle the emergency easily, as the hospital bills will be paid by the insurance agency. Adopting family health insurance not just pays for self but also for parents, spouse, and children, thus rendering comprehensive family cover.
The Right Age to Buy Medical Insurance
Though there is no age limit to buy health insurance, it is good to adopt them at an early age to benefit from extensive cover and low premiums. Health insurance premiums increase with age to cover the risks of age-related health problems. Those who fail to take health insurance in their 20's should compulsorily take one after getting married, to bring their spouse and children undercover.
Health Insurance – Reasons Why We Need One
Health insurance is an important aspect of preventive healthcare, as it helps to prevent the catastrophic consequences of one's finances. Other good reasons why one needs health insurance are:
1. Insurance Coverage for Changing Lifestyle
As the lifestyle of people is changing, they are prone to metabolic diseases and other critical illnesses. Their risk of seeking medical care increases and by adopting a medical insurance plan, it becomes easy to pay for the treatment. Also, health insurance plans of modern days cover almost all common and even some of the rare diseases to offer comprehensive coverage.
2. Increasing Medical Costs
The costs of medical treatments have enhanced many folds in recent years and have become practically impossible to be paid off with one's savings.
3. Diversity of Plans
As the insurance industry is also undergoing rapid change, they come up with new plans to meet the diverse needs of their clients. It is possible to find a tailor defined insurance plan, for people of all ages, in line with their requirements.
4. Tax Benefits
The premiums that are paid towards health insurance are covered under Section 80D of the Income Tax Act. It is possible to claim deductions up to Rs. 25,000 for the premiums paid in a year and there is an additional tax benefit of Rs. 5,000 for policies claimed for aged parents.
The importance of health insurance should never be underestimated for its efficiency to protect during emergencies. Also, many plans come with attractive features such as ambulance coverage, cashless claim, no claim bonus, pre and post hospitalization coverage, etc., enhancing their importance further.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.