Why buying health insurance should be a priority

In the uncertainties of life, you can never tell when a serious health emergency will strike you or your loved ones. Circumstances like these can deal a blow to your finances. In situations like these, adequate health insurance can be very helpful. 

What is health insurance? 

Simply put, a health insurance policy covers the medical expenses of an insured person arising from an illness or accident. Depending on the policy, it covers costs like hospitalisation, surgery, consultation, medical tests etc. 

Benefits of health insurance

Here are some notable benefits of health insurance.

1. Medical expense coverage - With a health insurance policy in place, you may not have to worry about any medical emergency. Be it an accident or treatment for a disease, your insurance provider will take care of the expenses for you. This can be done by the insurance company either by reimbursing the incurred cost or paying it upfront. One of the most significant benefits of health insurance is the coverage provided by insurance companies barring exclusions for pre-existing diseases, cosmetic surgery, among others.

2. Add-ons - Add-ons enable you to get additional coverage over and above the existing health policy by paying an additional premium. You can customise your health insurance policy based on your needs by going for add-ons like consumables cover, critical illness cover, OPD and wellness cover No claim bonus and others.

3. Tax benefit - You can get tax deductions for the health insurance premium you pay in a given financial year. This is capped at Rs 25,000 for individuals (and family) below the age of 60 and Rs 50,000 for those above 60 years of age. Additionally, if you pay the health insurance premium for your parents (below 60 years of age), you get an additional Rs 25,000 deduction. This deduction amount becomes Rs 50,000 if your parents are above 60 years of age. 

4. Portability benefits - If you feel health insurance benefits on your existing policy are inadequate, you can switch to another insurance provider by porting your policy. You can only do it at the time of renewal of your health policy. Porting your health policy doesn’t mean you are losing out on your accumulated benefits. The new insurer should give you the credit relating to the waiting period for pre-existing conditions that you received from the previous insurer and you must be insured up to the sum insured under the old health policy.

5. Specific health plans for senior citizens - Some insurers offer health insurance for senior citizens keeping in mind their age and needs. As health concerns increase with age, such plans can help in attaining peace of mind because you know that your medical expenses are covered, you have access to quality medical care, preventive medical check-up, and other benefits.

No matter what precautions you take, you can't guarantee to live a life without any health concerns. Severe medical conditions can drain you out of your savings quite quickly. With various health insurance benefits, getting proper medical treatment without worrying about finances has become much more manageable. So if you don’t have a health insurance plan, it should be your priority.

Read : Difference between life insurance and health insurance