Health insurance investment makes financial planning a whole lot easier for individuals, families, and corporate groups in India. Not only do they offer protection against rising medical expenses but they allow you to keep your personal savings intact as an individual or main breadwinner. What are your options when it comes to investing in a health insurance plan in India?
A health insurance policy is a contract with an insurer who agrees to cover medical and healthcare costs in exchange for a premium. In India, insurers can offer standalone health plans or a combination of life and health insurance.
Health or medical insurance plans can be defined as policies that provide coverage on a number of medical-related costs such as hospitalization, surgery, and treatment for illnesses. They provide financial support to the policyholder and members when they fall ill or require healthcare.
There are several reasons why you need to invest in health insurance especially if you’re serious about protecting your and your family’s health and financial well-being.
Lifestyle diseases such as heart disease, Type 2 diabetes, and respiratory ailments are common conditions in India and they can be deadly if not treated properly. However, medical treatment is costly, putting financial strain on the patient as well as other family members. Health insurance ensures you can fight lifestyle diseases without struggling to find the funds out of your own pocket.
Safeguarding your family’s health and financial well-being is vital but with medical expenses rising exponentially, the right treatment can be expensive. Health plans are designed to protect you and your family against a medical crisis, providing coverage while leaving your personal savings intact!
Not all insurance policies are designed to cover health-related issues, leaving you exposed financially should you or your loved ones fall ill or have an accident that requires hospitalization. Medical insurance policies fill the gap, countering inadequate coverage in the case of a critical illness, injury, or disease diagnosis.
Medical inflation continues to rise in India, resulting in costly treatments and procedures that need to be paid out of your pocket if you don’t have health insurance. It’s no secret that the cost of medical care, medications, and supplies is rising because of technological advancement, increased service costs, and a higher demand for healthcare facilities. A health plan helps you to deal with medical inflation.
Rising medical costs mean paying more out of your own savings if you’re not adequately covered by a health policy. Your financial savings planned for other purposes such as your child’s education or your retirement can be quickly depleted in the eventuality of a health-related issue. A health insurance plan will help you protect your savings while knowing you and your family are covered for healthcare.
Buying health insurance as soon as you start earning an income is recommended. The earlier you purchase a medical plan, the less likely your insurer will include clauses such as a waiting period or request for tests. Insuring early not only keeps you secure during medical emergencies but you can benefit from extended coverage from a younger age.
The policyholder pays a premium either monthly, quarterly, or annually for health insurance provided by a company. In return, the insurance company covers medical-related expenses by paying directly to the health provider or reimbursing claims paid by the insured.
Health insurance is designed to cover medical expenses associated with any or all of the following:
When purchasing a health insurance policy, decide what kind of coverage you need before settling on a plan.
Everyone needs a health insurance plan if they want protection against unexpected expenses that could threaten their financial security. Medical insurance is essential for long-term financial planning, keeping you and your loved ones always protected.
Individuals and families who want to benefit from quality medical care need a health plan while corporates can offer their employees’ health insurance as part of their package.
Medical emergencies can have a negative impact on your financial planning and you have to dig deep or sell belongings to provide the best healthcare for yourself or your family members. Health insurance provides financial stability while giving you peace of mind you can get the right treatment when you or your loved one needs it.
When looking for health insurance plans in India, you’ll be faced with a variety of options which could lead to you feeling overwhelmed about which one to buy.
Individual health insurance is specifically designed to cover the single policyholder for medical costs. This type of policy covers medical expenses to the amount of the sum insured and the premiums paid. Individual health policies often allow for lifetime renewability and other members such as your parents may be included and are allocated individual sum insured amount.
The family floater health insurance offers umbrella coverage for all members listed on a single policy. One premium is paid and the sum insured is shared equally between all family members. While the premiums are higher compared to individual health insurance plans, it’s more affordable compared to paying for each member on their own policy. It’s easier to manage a single policy for an entire family compared to individual plans.
Businesses are seeing the benefit of providing group health insurance to their employees as part of their salary package. The premium costs are often lower for organizations, making health insurance affordable for its members while extending coverage to loved ones.
Senior citizens’ health insurance is designed to protect people in their later years. Most individual or family floater medical plans don’t offer coverage for senior citizens beyond 65 years or older. Cover benefits include financial support for expenses related to pre-existing diseases while protecting the policyholder who is no longer receiving an income due to retirement.
Healthcare expenses related to pregnancy, birth, and newborns are costly, putting financial strain on the parents, especially for young families still building their financial security. Maternity health insurance protects the mother and baby from expenses associated with pregnancy and birth while giving the family financial support at the same time.
Critical illnesses such as strokes, renal failure, and paralysis can result in huge financial strain for the patient as well as the family. Getting critical illness cover for these conditions protects you from costly medical bills while ensuring you get adequate treatment. These plans pay out a lump sum amount which can be used to cover treatment costs or provide financial support in the case of loss of income.
Top-up health insurance plans cover any shortfall not covered by a policy. This plan allows you to increase the base sum insured amount and is used when claims exceed the initial coverage. Top-up and super top-up plans give you additional medical coverage on your existing health policy and aren’t the same as riders.
Investing in a health insurance policy in India has many benefits that shouldn’t be ignored especially with rising medical costs!
Health insurance provides financial protection, safeguarding your personal savings for life events such as your child’s education, buying a new house, or your retirement. Buying health insurance should be part of your financial planning, giving you security when you need it most.
Health insurance covers a wide range of medical expenses including pre-and post-hospitalization treatments, a medical check-up, and surgical procedures. Medical inflation continues to rise in India making these health-related costs out of reach for many people but which can be covered by buying health insurance.
Buying medical insurance at a younger age often gives you lifetime renewability, offering extended health coverage in your later years without facing lengthy waiting periods. You can renew your health policy coverage without having to undergo medical tests which is often a requirement when qualifying for a new plan.
Cashless claims provide further protection when you use one of the insured’s network hospitals. This means you don’t have to pay out of pocket to cover medical bills when hospitalized, with all expenses sent directly to your insurance company for payment.
If you haven’t made any claims during a specific period, your insurer may add a cumulative bonus to your health insurance plan. This could reflect as an increase in your sum insured amount or a discount on the policy premium.
A free annual health check-up covered by medical insurance can prevent high expenses by picking up any problems in the early stages of a disease or illness. This allows for treatment to start immediately, resulting in far fewer medical costs compared to an illness diagnosed in its advanced stages.
According to the Income Tax Act, Section 80D, health insurance is tax-deductible for citizens of India. Tax benefits are offered on the premiums paid for health policies and are deductible from your taxable income.
Comprehensive health insurance plans that include coverage for a wide range of medical-related conditions are often more affordable with lower premiums. These plans provide unlimited or extensive coverage plus additional benefits for day-to-day medical expenses.
Including health insurance as part of your financial planning is key for protecting yourself and your family against unexpected medical expenses. With medical insurance as part of the package, you can do better financial planning for both current and future monetary goals. This way, you have control over your financial freedom even when there’s a health scare or emergency.
There are several reasons to buy health insurance besides covering medical bills! Speaking to a reputable insurer will show you how to invest in health insurance in India. Factors such as the type of medical insurance and features to consider are key to making a smart investment for your and your family’s health and financial well-being.
Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
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