Health Insurance

Understand the Impact of Health Insurance on Your Family, Pocket, and Tax

Dec 17, 2021

Health Insurance can be helpful for yourself and your family in case of any adversities. The most important intention of a health insurance policy is to provide financial protection if there is a medical emergency. There tend to be several benefits and downfalls for every health insurance plan and so, it is an important task to know in detail about each health insurance plan before opting for buying one.

Why is health insurance necessary?

In today’s times, where life is highly uncertain, health insurance is one of the most reliable forms of financial security. But, still, there are a huge number of people who are quite unaware of the importance of health insurance in day-to-day life. In the majority of cases, common people tend to ignore the importance of health insurance plans until someone close to them suffers from a health issue or problem.  Moreover, the cost of good quality medical facilities is quite expensive in India and quite unaffordable for the common people. If there is a major health issue for yourself or any of your family members then a major part of your savings would be used to meet the expenses of the treatment. 

Here the concept of health insurance policy arises. A good health insurance policy will help in compensating for the medical facilities which you have availed of during the policy term. Some health insurance policies nowadays offer several additional benefits like personal accident cover, demise, or the permanent disablement of the person who is insured.

Moreover, you can choose a family floater health insurance plan as well. This health insurance plan would help in providing cover to the entire family at a nominal premium.  One of the major advantages of the Family Floater Health Insurance Plan is that you would have to pay the premium only once as it would be considered as a Single policy. 

One more significant reason for opting for a health insurance policy is the tax benefits that would be obtained by the premium payment of the health insurance policy. Under Section 80D of the Income Tax Act, 1961 you can obtain tax benefits for the premium paid for health insurance plans. Each health insurance policy has its benefits; you must pay attention to every detail and then select the right health insurance plan for yourself.  The main objective of a health insurance policy is to ensure that you do not have to pay an extreme amount from your pocket at times of medical emergency. 

The major benefits offered by health insurance companies are summed up as:-

  1. Cashless settlement for the costs of health checkups
  2. Coverage for the pre-hospitalisation and post-hospitalisation expenses
  3. Coverage for the expenses incurred in the treatment of pre-existing conditions
  4. Tax benefits under Section 80D of the Income Tax Act, 1961

Things you must consider before purchasing a health insurance policy

When you are planning to purchase a health insurance policy, you must know about certain important things. 

  • Irrespective of the choice you make for health insurance, you must ensure that the coverage is provided for an extensive fraction of your medical expenses. 
  • Moreover, the health insurance provider which you have selected must have a wide network of hospitals throughout the country. By this, cashless hospitalisation would be easier. 
  • Through cashless hospitalisation, you would not have to spend from your pocket and the insurance company would take care of the expenses.
  • It is advisable to choose a health insurance plan which would match your lifestyle and requirements. You can choose amongst the comprehensive, basic or a supplemental health insurance plan. 
  • One of the most important things which can be done concerning the health insurance policy is to consider the premium you can afford and your income. 
  • Your future medical requirements can be estimated or rather understood by taking into consideration any past injuries or accidents which might have occurred. 
  • Moreover, before purchasing your health insurance plan the requirements of your family must also be considered.

Also Read:- Guide to Super Top-up Health Plans in India

Conclusion

So, you must do proper research on the health insurance policies, understand your requirements, and choose your health insurance plan accordingly. The right health insurance policy would help you to have financial stability in case of medical contingencies and also avail the tax benefits for the health insurance premium paid.

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