Health Insurance – An Expense or an Investment

Health Insurance – An Expense or an Investment

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The cost of healthcare in the country is increasing at a rapid rate. The estimated healthcare inflation in the country is around 20 percent, as compared to the overall inflation of 8 to 9 percent a few years ago. Due to this, you may only assume that healthcare costs will continue to increase in near future. In order to protect yourself from high medical inflation, it is necessary to invest in a health insurance policy.

Healthcare
Healthcare

Many are of the opinion that buying a healthcare plan is more of an expense, rather than an investment. However, this is not true. Though premiums paid towards the insurance policy are an expense, it offers manifold benefits in case of a medical emergency. You are financially protected from hospitalization expenses, cost of surgeries, and treatment expenses, besides many others. You may, therefore, focus on speedy recovery instead of worrying about arranging cash to pay your medical bills.

Following are five major advantages of a health insurance policy, which indicates that such a policy an investment rather than an expense.

1. Coverage against lifestyle-related diseases

Staying healthy is important. However, with today’s unhealthy lifestyle patterns, staying healthy has become a difficult task. Numerous individuals suffer from lifestyle-related diseases, such as cardiac issues, high cholesterol, or diabetes. The cost to receive medical treatment for such lifestyle-related diseases is high. Purchasing a health plan offers coverage against such diseases, thus preventing financial losses.

Medical Insurance Policy
Medical Insurance Policy

2. Coverage against high hospitalization charges

Investing in a medical insurance policy ensures that you do not have to make any out-of-pocket medical expenses in case of hospitalization. You may seek reimbursement of all the expenses incurred by you during hospitalization. Alternatively, you may enjoy the benefits of cashless medical insurance. In such a case, the insurance provider will settle all the medical expenses with the hospital. However, you need to get hospitalized at any of the insurer’s network hospital. A medical health plan covers not only hospitalization expenses but also pre-hospitalization and post-hospitalization charges.

3. Coverage against domiciliary expenses and ambulance charges

In case you wish to undergo special kind of therapy such as acupressure or acupuncture, you may do so without any financial burden. A medical insurance plan covers such domiciliary-related expenses. It also provides coverage against Unani medicinal procedures or Ayurvedic treatment. Besides, some health plans also cover ambulance expenses, thus providing comprehensive coverage during difficult times.

Health Insurance
Health Insurance

4. Benefit of No Claim Bonus

No Claim Bonus is a health insurance benefit that you receive for not making any claim against your policy. It is a reward offered by your insurance provider for keeping good health. Your insurance provider may either offer a discount on your premium amount or may increase the sum insured. Given the rise of medical inflation, a No Claim Bonus is indeed a benefit that you may enjoy to meet rising health expenditures.

5. Tax benefit under the Income Tax Act, 1961

Another point that helps understand why a health policy is more of an investment than an expense is the tax benefit it has to offer. Under Section 80D, medical insurance premiums for self, spouse, children, or dependent parents may be exempt from tax, up to a limit of INR 25,000. In case any of the insured party is a senior citizen, you may avail of tax deductions up to INR 30,000.

Though it may seem that paying premiums is a strain on your budget, you must remember that there are several health insurance benefits. It is one of the best investments that you may make to safeguard yourself from huge medical expenses.

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