The Importance of Health insurance

Understand the importance of insurance and why you ought to buy a policy for yourself.

Health insurance may be a sort of coverage wherein, an insured can claim payments for his medical and surgical expenses.

What is Health Insurance?

Health insurance is an agreement whereby an insurance company agrees to undertake a guarantee of compensation for medical expenses just in case the insured falls ill or meets with an accident that results in hospitalization of the insured. Generally, insurance companies have tie-ups with the leading hospitals so on provide cashless treatment to the insured. just in case the insurance firm has no tie-ups with the hospital, they reimburse the value of expenses incurred by the insured. the govt also promotes insurance by providing a deduction from tax.

Importance of insurance

Buying an insurance policy for yourself and your family is vital because medical treatment is getting expensive, especially within the private sector. Hospitalisation can burn a hole in your pocket and derail your finances. it'll become even tough, if the one that brings within the money, is now in bed due to medical needs. All this can be avoided by just paying a little annual premium which might lessen your stress in case of medical emergencies. An insurance policy would cover expenses made towards doctor consultation fees, costs towards medical tests, ambulance charges, hospitalization costs and even pre & post-hospitalization costs to a particular extent.

Benefits of getting a health insurance Policy

• Cashless Treatment:?If you're insured, you'll get cashless treatments as your medical expense if your insurance company has a cashless tie-up with the hospital in which you are getting treatment.
• Pre and post hospitalization cost coverage:?The policy also covers pre and post-hospitalization charges up to the amount of 60 days, depending on the insurance plans and premium paid.
• Transportation Charges:?The policy also covers the cost paid to the ambulance for the transportation of the insured.
• No Claim Bonus (NCB):?This is often the bonus element that is paid to the insured if the insured doesn't file a claim for any treatment within the previous year.
• Medical Checkup:?The policy also provides options for health checkups. Free health checkup is additionally provided by some insurers.
• Room Rent:?The policy also covers room expenses counting on the premium being paid by the insured.
• Tax Benefit:?Premium paid on insurance is tax-deductible under section 80D of the tax Act.

How to Select the proper health insurance policy

It’s difficult to pick the simplest insurance policies as all insurance firm provides an identical sort of insurance plan. Hence a number of the details that a person should look at before purchasing any plans are:

• Sum Assured:?Sum assured is a pre-defined sum that the insurance company agrees to pay for your medical treatment in any given year against the premium paid.
• Minimum/Maximum Entry Age and renewability clause:?Its age bracket in which a person can buy health insurance or renew existing health insurance and can rip benefits.?
• Room Rent Capping:?It is the maximum amount that the insurance company will pay for room rent per day at the time of hospitalization.?
• Inclusion and Exclusion:?This is a list of things that a health insurance plan will cover or will not cover.?
• Waiting Period:?It is the time (in days or months) after which the insurance plan will cover certain medical treatment.?
• No Claim Bonus:?This is often the bonus element that is paid to the insured if the insured doesn't file a claim for any treatment within the previous year.
• Other Benefits

Types of insurance

1. Individual Insurance:?This policy covers the health expenses and hospitalization expenses of individual who has taken the policy. Premium under this policy is decided as per the age of the insured.
2. Family Floater Insurance Plan:?Under this policy, a relation can include all the family members under one cover. A floater health plan offers a hard and fast sum assured for the family, which may be availed by all members of the family or by anybody individual within the family.
3. Senior Citizen Insurance Plan:?This policy is meant for senior citizens or individuals over 60 years aged protection from health issues during adulthood.
4. Surgery and Critical Illness Insurance Plan:?This plan is suitable for the insured that needs treatment against critical illness, like kidney renal failure, paralysis, cancer, attack etc. because the medical expenses of those treatments are very high, the premium applicable to those sorts of policies is additionally high.
5. Maternity Insurance Plan:?This policy covers costs, including pre and postnatal care, child delivery expenses of newborn babies. This policy is additionally covered for the newborn up to a particular period of your time as mentioned within the plan.?
6. Personal Accident Plan:?This policy covers hospitalization expenses in the event of an accident. The Premium amount is depending upon the quantity of canopy taken.

Tax Benefits on Health Insurance:

The amount you pay towards the insurance premium is claimed as a tax-saving deduction under Section 80D. You can claim ?25,000 annually for an insurance policy for yourself. If you furthermore may pay the premium for an insurance policy for your parents, you'll claim up to ?30,000 for an equivalent also.?

Earning money isn't in the least useful if you don’t have a life. believe yourself and your family and therefore the importance of life. you recognize the importance and benefits of getting a health insurance policy. Start one, if you haven’t already.