Health is wealth, and when it comes to securing your family's health, it's imperative to invest in a health insurance plan. In India, healthcare costs are rising at an alarming rate, and without proper health insurance coverage, a medical emergency can wipe out your savings and leave you in debt.
Therefore, having a health insurance plan for your family is essential and a wise financial investment. In this blog, we will discuss the various reasons why a health insurance plan for the family is an important financial investment to do in India.
In India, health insurance plans are available for individuals, families and senior citizens. Family health insurance plans offer coverage for the entire family, including the policyholder, spouse, children and parents.
These plans come with various benefits, such as cashless hospitalization, no-claim bonus and tax benefits. On the other hand, senior citizen health insurance plans offer coverage for individuals above 60 years of age.
Customers in India are becoming more aware of the importance of health insurance and are actively seeking out health insurance plans.
With the growth of the internet and digital channels, customers can easily compare and purchase health insurance plans online. Many insurance companies also offer customized health insurance plans to cater to customers' specific needs.
Challenge in the Indian health insurance
One of the challenges in the Indian health insurance market is the rural population's low awareness of health insurance. According to a report by NSSO, only 14% of the rural population in India has health insurance coverage.
Insurance companies and the government are taking steps to increase awareness of health insurance among the rural population. The government has launched schemes such as Ayushman Bharat, which provides health insurance coverage to families below the poverty line.
Rising healthcare costs in India
Over the past decade, healthcare costs in India have risen significantly. The cost of medical treatment and hospitalization has become unaffordable for many families. According to a report by the National Sample Survey Organization (NSSO), more than 80% of the Indian population does not have health insurance coverage.
This means that most families have to bear the entire cost of medical treatment and hospitalization out of their pockets. The rising healthcare costs make it imperative for families to invest in a health insurance plan that can help them manage the financial burden of medical emergencies.
Financial protection
A health insurance plan provides financial protection to the policyholder and their family against the cost of medical treatment and hospitalization. In the event of a medical emergency, the insurance company pays for the medical expenses, which can be a significant amount.
Without health insurance coverage, a family may have to dip into their savings or take loans to pay for medical expenses. This can put a strain on their finances and leave them in debt.
Coverage for critical Illnesses
In India, the incidence of critical illnesses such as cancer, heart disease and kidney failure is increasing. The cost of treatment for these illnesses is exorbitant, and without health insurance coverage, it can be difficult for families to manage the financial burden.
A health insurance plan provides coverage for critical illnesses, which means that the policyholder and their family can get access to quality medical treatment without worrying about the cost.
Cashless hospitalization
Many health insurance plans in India offer cashless hospitalization. This means that if the policyholder or their family member is admitted to a network hospital, the insurance company pays for the medical expenses directly to the hospital.
The policyholder does not have to pay anything out of their pockets, which can be a significant relief in times of medical emergencies. Cashless hospitalization is a convenient feature that makes health insurance plans more attractive for families.
Tax benefits
Health insurance plans also offer tax benefits under Section 80D of the Income Tax Act, 1961. Policyholders can claim a deduction of up to Rs. 25,000 on the premium paid for health insurance for themselves, their spouse and dependent children.
An additional deduction of up to Rs. 25,000 can be claimed for the premium paid for health insurance for parents. If the parents are senior citizens, the deduction limit goes up to Rs. 50,000. These tax benefits make health insurance plans an attractive financial investment for families.
No claim bonus
Many health insurance plans offer a no-claim bonus to policyholders who do not make any claims during the policy period. The No claim bonus is available on the renewed policy.
Conclusion
Investing in a health insurance plan for family is not just important but also a wise financial decision in India. With rising healthcare costs and the increasing incidence of critical illnesses, a health insurance is an important financial investment that can protect your family's finances in the event of a medical emergency.
