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HEALTH INSURANCE AND ITS MAJOR BENEFITS

HEALTH INSURANCE AND ITS MAJOR BENEFITS

India Blooms News Service | | 06 Feb 2017, 11:02 pm
Health insurance is an investment to protect yourself and your family. Contrary to the common belief, a medical insurance policy is not an expense. Your policy covers your hospital cost if you suffer from a health disorder. There are various plans to cover your health risk that are flexible and can be customized. It is important to understand why you need a medical insurance policy from a fundamental perspective first.

Illustration

Insured Benefits (basic) Annual Premium cost
Malwika is 35 years of age and unmarried. She has bought a health policy for herself. • Various health risk covered including lifestyle health risks
• Preventive care expense cover
• Cashless payment for hospital expense
• Critical illness cover (as a rider)
• Organ donor treatment
• Ambulance
• Tax benefits
Gross Premium cost will be Rs. 10,000 (approx.) for total sum insured of 10 Lakh.

She also has a critical illness cover of Rs. 5 Lakh, which makes the Gross Premium for the policy Rs. 18,000 (approx.).

The whole of this amount is tax deductible for Malwika.
Scenario 2: Bhanupratap is 32 years old. He is married and has one child, parents are financially independent.

Bhanu as policyholder, spouse, and child are also insured

• Family cover
• Various health risk covered including lifestyle health risks
• Hospital room rent, surgery, and medicinal expenses
• Daily cash benefit
• Preventive Healthcare discounts
• Pre-andpost-hospitalization
• Maternity cover
• Organ donor treatment
• Cover for Life-threatening disease (critical illness rider)
• Tax benefits
Gross Premium cost will be Rs. 19,000 (approx.) for total sum insured of Rs. 15 lakh.

Bhanu has taken the critical illness rider of 10 Lakh, then, Gross Premium cost will be Rs. 23,000 (approx.) for total sum insured of 10 Lakh.

The whole of the premium is tax deductible
Scenario 1: Mr. Rajat is a middle-aged man (around 40 years). He is married and has two children. His parents are living separately, and are senior citizens (above 60 years of age).

Rajat as a policyholder, his spouse, and children, separate senior citizen policy covering parents.

Apart from the family cover, Rajat’s parents have the following benefits:
• Daycare procedures cover
• Pre-& post hospitalization
• Domiciliary treatment
• Second expert opinion on critical illness, etc.
Gross Premium cost will be Rs. 22,000 + 54,000 (approx.) for total sum insured of Rs. 15 Lakh (only health policy).

With critical illness rider of 10 Lakhs for Rajat, the Gross Premium becomes Rs. 27,000 + 54,000 (approx.) for the policy.

Rajat can claim a total of Rs. 55,000 (25,000 + 30,000) as deduction under section 80D.

Understanding the Benefits in Detail

  • Personal & Financial Health: Health insurance is not only a cover for your personal health but also protects your financial health all along. A major hospital bill can be devastating for your financial plans and future goals, as you not only risk losing your source of income but also a chunk of your savings. There have been many instances where families had to take a significant amount of loans to pay off the health bill, getting bogged down by repayments for a long time. Companies like Apollo Munich Health Insurance advocate freedom of mind from healthcare costs, conveying effectively how health insurance is an imperative need and not just a lifestyle choice. Therefore, take up health insurance not just for your personal health but also your financial health.
  • Longer Life & More Wealth: Regularpreventive medical checkups can save you from bigger medical bills by detecting illnesses before they become severe. Insurers offer discounts on such medical processes if you have been continuing the policy for some time. Additionally, you are entitled to a tax benefit of up to Rs. 5,000, for preventive health care in a financial year. Staying healthy means you can enjoy your life better, work harder and save more by staying out of hospitals.
  • Comprehensive Family Cover: Building family changes not just your life but your goals, priorities as well as the risks you need to be careful for. A married person, therefore, needs a plan with different features which can include the newly acquired risks. A family floater plan with maternity benefit is the best health cover you may obtain at the time of starting a new family.
  • OPD Expenses & Organ Donor Covers: Some Insurers have included OPD and Organ Donor treatment expenses in their health insurance offerings. OPD expenses are far more frequent than large medical bills and can become significant over time in the case of extended treatments.
  • Tax Benefits: The policyholder is entitled to tax benefits under Section 80D of IT Act. Your premium is tax-free, subject to a limit. If you are paying a premium for your parents, then that offers you an additional tax deduction, subject to a limit.

Health insurance policies should not be seen only as an instrument to save tax. You can look up medical insurance quotes, and decide the best plan that suits your need. The comprehensive benefits of such a plan far outweigh the annual premium paid for it. With rising cost of living and ever high aspirations, an adequate health insurance should be expected to work as a support system to keep your long-term plans afloat.

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