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Here’s Your Ultimate Guide on Understanding Why You Need a Health Insurance Plan

by Sonal Shukla

Here’s Your Ultimate Guide on Understanding Why You Need a Health Insurance Plan

Health insurance does not always cover 100% of your payment. It is planned to share the cost with you up to a confident point, called the out-of-pocket limit. After you hit the limit out of pocket, health insurance will pay for your medical care costs. The importance of having health, or medical insurance in modern times is especially important, especially when we find it difficult to balance our working life with healthy lifestyle options. 

Besides, medical emergencies can arise without any closeness. While you may not predict the outcome, in this case, you can prepare for an emergency pre-emergency with health insurance plans

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Having health insurance protects you and your family from the huge financial burden of paying for medical expenses. Besides, the health insurance policy also helps you to cope with the loss of income while receiving treatment, which can lead to inequality in your family finances.

How Health Insurance Works And Why Do You Need It?

Buying health insurance, also referred to as a medical insurance, for you and your family is important because health care is high-priced, particularly in the private sector. Being hospitalized can burn out a pocket and cost you money. It will be very difficult, if the person, who brings the money, is now in a hospital bed. 

All of this can be avoided by simply paying a small annual fee that can reduce your stress in the event of an emergency. A good health insurance policy will usually cover costs incurred in consultation costs, medical expenses, ambulance costs, hospitalization costs, and reimbursement costs. 

A comprehensive medical insurance policy or medical insurance not only helps to take care of medical bills but can also provide coverage for other medical tests, treatments, and procedures according to your need. With the right health insurance policy for your kitty, you can earn enough money for any risk.

Having health insurance is an important decision for many reasons. In the absence of health insurance:

  1. You could spend all your savings on medical treatment and end up with financial problems
  2. You may have to choose the best treatment if you do not have enough money to cover the costs

On the other hand, health insurance programs in India offer:

  1. The full benefits of coverage exceed the cost of purchasing medical insurance
  2. Tax-saving under Section 80D is a tax deduction paid for coverage of health insurance
  3. Financial assistance to cover treatment, pre-and post-hospitalization costs within the time of availability

Certain health insurance schemes help provide complete financial protection for all stages of cancer, by allowing you to increase the guaranteed amount by 10% for the first claim-free years, at no additional cost.

In India, people under the age of 45 do not have to undergo a health check-up when they receive a health insurance policy. However, they need to disclose any pre-existing conditions such as diabetes or high blood pressure. Therefore, it is often advisable to get medical insurance at an early age so that the premium is low.

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What Are The Types Of COVID-19 Insurance Available?

The Indian government aims to address the need for COVID-19 insurance coverage through two different types of COVID-19 insurance. The name of these types of types of COVID-19 insurance plans should be kept the same throughout the industry, followed by the name of the insurance company. While one of these types of Coronavirus insurance strategies is a reimbursement program, another benefit plan remains the same.

Being one of the two most common types of COVID-19 insurance, Corona Kavach covers the medical costs required for COVID-19 disease. 

Unlike the independent types of COVID-19 insurance plans, you can benefit from life insurance riders while purchasing life insurance plans to cover the costs associated with COVID-19 19 treatment. 

Think of these passengers as one of the most important types of COVID-19 insurance that you can get insurance for by getting COVID-19 19. They differ from Corona Kavach in many ways.

Another major advantage a salaried person must keep in mind while estimate the life insurance cover they need, is the tax deduction offered against their premiums, under Section 80C of the 1961 Income Tax Act

According to the latest update, the old tax regime allows a deduction of up to Rs. 1,50,000, including premiums against your life insurance policy, provided that the yearly premiums do not exceed 10% of the sum assured to the policyholder.

We all plan to protect our financial future in one way or another, not knowing that uncertainties like COVID-19 will have a profound effect on our lives. Get yourself covered in time and reap the benefits of a health insurance plan.


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