What are the benefits of having health insurance?

Health Insurance: Reasons to Safeguard Your Medical Needs

Health insurance is a safety net that you start building today to protect you and your loved ones' physical and financial health in the future. Let’s take a look at some of the benefits of health insurance and why purchasing a plan is something you should not ignore:

Coverage for Medical Services

Purchasing health insurance is equivalent to securing coverage for various types of medical expenses, including hospitalisation costs, transportation costs, treatment costs, and more. Additionally, insurance companies are now offering a long list of riders that you can add to your existing plan to enhance the coverage for your special needs, like a maternity rider, a critical illness rider, global coverage, and a lot more.

Pro Tip: Purchasing a health insurance plan at an early age comes with the benefit of higher coverage at affordable premiums.1

Access to Renowned Hospitals

When it comes to health, it is obvious that you would want to be treated at the best medical facilities and be under the care of the finest medical experts in the country. Health insurance companies partner with renowned hospitals nationwide, offering easy access, cashless bill settlement, and various other facilities, depending on your policy type.

A Reminder to Stay Healthy

Purchasing health insurance is no longer limited to covering medical treatments and hospitalisation costs. Rather, it is a step you take to get regular reminders to choose a healthy lifestyle every day.

Here's How: Many health insurance companies offer wellness programs that allow you to track your fitness and health regularly, earning impressive benefits and discounts for maintaining good health.

A Financial Protection

Whether it is an annual checkup, a daycare treatment, maternity-related treatment or treatment for critical illness, medical bills at a reliable hospital in India can become a huge financial burden. However, if you have a robust health insurance plan that is tailored to meet the needs of you and your family, you are financially protected.

Benefits Through Tax Exemptions

To encourage individuals to purchase a health insurance plan, the Indian government has introduced several incentives and tax benefits. For instance, under section 80D of the Income Tax Act, you can claim a tax deduction against the premiums that are paid towards purchasing health insurance.

What You Should Know?

• You can claim tax deductions of up to ₹25,000 if the plan is for yourself, your spouse, or dependent children and parents.
• You can claim tax deductions up to ₹50,000 if the plan is for senior citizens or parents aged 60 years and above.
• If both you and your parents are seniors, then the deductions can be ₹50,000 + ₹50,000. You can thus save up to ₹1 lakh.

Peace of Mind

Knowing that your medical needs and those of your loved ones are protected even during emergencies offers you peace of mind that is truly unmatched. This is why health insurance is not just a financial step, but rather a decision you make to navigate life without worrying about rising medical expenses in the country.

How to Choose the Right Health Insurance Plan?

An overwhelming number of options can become confusing at times. Take a look at these considerations that you must bear in mind to choose the right health insurance plan:

Type of Health Cover You Need

A health insurance plan is primarily of two types: an indemnity plan and a defined benefit plan. An indemnity plan is designed to offer reimbursement for the hospital expenses up to the sum assured, whereas a defined benefit plan offers payment of a lump sum amount regardless of the hospital expenses.

Pro Tip: Experts suggest that choosing an indemnity plan is a key step in building a comprehensive health insurance portfolio. You can always top up with riders to enhance coverage as needed.4

Estimate the Coverage Amount

Although there is no set rule as to the kind of coverage that is enough for an individual‘s needs, you can always rely on parameters such as average medical expenses in your country, the medical history of your family, and the medical needs of you and your loved ones.

Pro Tip: Check the annual claim settlement ratio report of insurance companies, published by IRDAI, to find a reliable health insurance company.

Evaluate the Base Coverage

Every health insurance plan comes with a defined set of base coverages, for which the insurance company promises to cover the expenses. Ensure that you thoroughly evaluate the base coverage before purchasing a plan.

Choose Riders Smartly

To enhance coverage according to your needs, you can choose riders or add-ons to your existing plan. Remember that riders come at a modest additional premium payment. You must choose riders wisely and only opt for those that align with your specific medical needs.

Summing Up

Health insurance plans have been repeatedly argued to be one of the most crucial financial decisions. It is the safety net that you build to stay prepared for unexpected medical emergencies or other medical needs of you and your loved ones.

If choosing between plans offered by different health insurance companies appears daunting to you as well, head straight to Jio Insurance Broking to evaluate and compare plans under the same platform.