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A primer on Health insurance

Wondering why you should take your health insurance? Read below!

The need for health insurance has become essential for every individual in India. It provides coverage against unexpected expenditures resulting from medical emergencies. A number of insurance companies have tie-ups with leading hospitals so as to offer the treatment without paying cash to the insured. If the insurance company does not have a tie-up with the hospital, it reimburses the insured for their expenses. In addition, the government encourages health insurance through income tax deductions. Let us cover some benefits of Health Care Insurance:

· Tax Benefit - According to section 80D of the Income Tax Act, a policyholder can claim a tax deduction of up to Rs 50,000 for the health insurance premium paid for their parents (elderly).

· Cashless Benefit - With an insurance plan, your insurance company will partner with multiple hospital networks, allowing you to receive cashless treatments. This facility is hugely helpful during medical emergencies when a person needs to receive immediate medical attention. Any costs incurred as a result of the treatment are covered by the insurance company.

· Protection of Savings - By purchasing a health insurance policy, you can manage your medical expenditures more effectively without draining your savings account.Insurers help you manage your emergency medical costs, enabling you to spend your savings more efficiently.

· Bonus Claims -Standard insurance policies offer a bonus for every year that there has not been a claim. Cumulatively, this bonus adds up to a large sum. Young people who invest in health insurance policies will undoubtedly reap the benefits of a massive cumulative bonus in the years ahead since the chances of them having a health insurance claim during their youth are low.

Here are some Government Healthcare Insurance Policies in which investment is useful – Rashtriya Swasthaya Bima Yojana (RSBY), Pradhan Mantri Suraksha Bima Yojana, and Central Government Health Scheme (CGHS).

One can also invest in these policies – MAX Bupa Health Insurance, HDFC Ergo Health Insurance, SBI Health Insurance, National Health Insurance and Bajaj Allianz Health Insurance.

Watch out this space for more such informative blogs :)

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