Although medical science has drastically advanced in the last decade and given rise to modern treatment methods, these procedures tend to be expensive and out of reach for the common man. The treatment procedures and techniques which are expensive can still be availed of without you having to dig into your savings. The ideal way to do this is by purchasing a health insurance plan this year.
There are multiple benefits of having a health insurance plan in India. These are:
a) Financial Stability
You need not borrow money or use your savings in order to pay for medical treatment fees.
b) Tax benefits
You can avail tax benefits under section 80D of the Income Tax Act of 1961 for premium payment towards your health insurance. As per the law, your tax liability will reduce by a certain percentage if you have a health insurance plan.
c) No Claim Bonus
If you didn’t file a claim in the previous year or consecutive years, you are entitled to NCB (No Claim Bonus). In this, you will get a certain percentage discount on your insurance premium.
How Much Should You Invest In A Health Insurance Plan?
There are many health insurance policies available in the market and the cover of each plan differs from the other. Always choose the cover by checking the following factors:
- a) Current health status
- b) City of residence
- c) Nature of Job
- d) The budget of the extent of coverage
- e) Medical history
Most experts from the industry recommend a coverage of INR 5 lakh with a floater policy that increases the amount up to INR 7.5 lakh for a middle-class family of two adults and two children. This way the general medical expenses will be easily covered. As a simple thumb rule, you can pay 2 per cent of your yearly income towards your health insurance premium. For example, if your yearly income is INR 6 lakh, you can pay the yearly insurance premium of INR 12,000.
How Is Each Plan Better Than The Other Health Insurance Plans?
In today’s digital age, you can easily find all the information about a health insurance online and need not rely on an individual insurance policy seller to get the necessary information. Since the information is easily available online, it is important that you compare various health insurance plans before deciding on the right one. There are various parameters based on which you can compare insurance plans and decide which plan is better. These are:
a) Free health check-up
Most insurance companies provide a free health check-up to the insured member once every year. You need not pay any extra amount for this feature. Ensure that you opt for an insurance policy that has this feature. A health-check-up every year is a must.
b) Waiting Period
The waiting period to cover the expenses of an old illness varies from one insurance company to another. Choose an insurance company that has a lesser waiting period.
Some insurance companies will only cover a certain percentage of the entire medical bill. You will have to pay for the remaining portion from your money savings. There are a few other insurance companies that will cover the entire expenses and you won’t have to pay a single penny. Based on the conditions, choose a health insurance that doesn’t require you to pay a lot for the co-pay arrangement.
d) Network Hospitals
A network hospital is a hospital that is associated with the insurance company. In these hospitals, you can easily avail cashless treatment and get a quicker service. Select an insurance company with a large network of hospitals.
e) Incurred Claim ratio
Most insurance companies claim to provide a quick settlement but that is not true in many cases. The Incurred claim ratio gives a clear indication about how quick the settlement process is.
You will need a health insurance in your sunset years more than you would have needed it in your prime. Hence, choose a health insurance that provides lifetime renewability. This way you can renew the same insurance repeatedly for a long period of time.
Necessary Financial Assistance
When you or one of your family members experiences a medical emergency, it is common to feel emotionally and financially stressed. The financial burden brought on by such situations can be reduced by opting for a health insurance. Though it might seem like a dead investment initially, it will pay its dividends when you need it the most. Hence, a health insurance plan in 2018 is a must. To compare and purchase a health insurance plan in a hassle-free manner, visit Coverfox.com today.