Nobody plans and get sick. There is a constant increase in the price of healthcare and with the ever-rising instances of diseases more due to our lifestyle, health Insurance is a necessity if we need to lead a peaceful life. There is always a risk surrounding us be it death, disability or destruction. Health insurance is a prudent way to transfer such risks to an insurance company. It is really staggering to note that India continues to have the lowest health insurance penetration though we all know that medical care in our country remains an expensive affair.
Purchasing health insurance is an integral part of financial planning. It pays for the medical expenses incurred by the insured either by directly paying to the hospital or reimbursing the insured. There are different types of health insurance plans, such as individual health insurance, family health insurance, critical illness insurance, cancer care policy etc. The recent addition is the COVID 19 policy.
Payments made towards health insurance premiums are also eligible for tax deductions under section 80D of the Indian Income Tax Act. Individuals up to 60 years of age can claim a deduction of up to ₹ 25,000 for the health insurance premium paid for themselves, or for their spouse or children. One can also claim another ₹ 50,000 as deduction if you buy health insurance for your parents aged 60 years and above.
This deduction will be available with respect to payments towards annual premium on health insurance policy, or preventive health check-up, of a senior citizen, or medical expenditure in respect of every senior citizen. So overall, if you are paying the health insurance premiums for your senior citizen parents, you can avail total deduction up to ₹ 75,000 (₹25,000 + ₹ 50,000), from the ₹ 55,000 (₹25,000 + ₹ 30,000) earlier.
It is noteworthy that the medical policies not only cover the hospitalization costs but also the expenses incurred towards OPD and diagnostic tests before and after a stipulated time period as prescribed by the policy. This stipulated time can vary from 15 days to 90 days. Some health insurers cover the cost of OPD (out-patient department) expenses and diagnostic tests. One will agree that the diagnostic tests are very expensive.
There are coverages for ambulance charges, day care surgeries, day care chemotherapies, physiotherapy, maternal benefits and for health checkups. These days insurance companies also offer health insurance for Ayush treatment. Some insurance companies offer hospital cash benefits to their clients. The group Mediclaim policies have a critical coverage and corporate buffers are available in case of prolonged ICU and critical ailments mutually agreed by the payer and the corporate. There are cancer guard policies which have a waiting period of 90 days. Few insurers offer Recharge and Restoration benefits for policies above 5 lakhs. There are exclusive policies that has a coverage even after having cardiac surgery. Some insurers cover autism and diabetes. The waiting period for Corona Kavach policies is 15 days.
There is no right age to buy health insurance policy. Buying health insurance policy at an early age has the advantage of paying a less premium because it is believed that the risk factors are less. Premiums for health plans are determined by the age, medical history, city of residence, etc. of the insured. Newborn babies are also covered. There are very good policies for senior citizens too.
Buying a policy to cover most of the illnesses is recommended. Critical illness policy is a highly recommended product. It is a cover that offers to pay you a fixed sum once you are diagnosed with a critical illness that is covered by the policy. You can opt to buy a critical illness policy as standalone insurance, or you can buy it as a rider when you buy your regular health insurance. Most Insurance offers Personal accident policy.