Health is wealth…………………………..

There is common saying health is wealth. For the prosperity of the family good physical, mental and as well social health is necessary.

What is health Insurance?

Health insurance is defined as "coverage that provides for the payments of benefits as a result of sickness or injury. It includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment" as per the contract between an insurance provider (e.g. an insurance company or a government) and an individual or his/her sponsor (e.g. an employer or a community organization). The contract can be renewable (e.g. annually, monthly) or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans.

 Is it necessary?

For any family it’s an absolute yes. For people in jobs, employee and her / his family is covered by employer (Private/Govt).

Self employed person need to buy insurance on his own.

While framing the financial planning ones health and health of the dependents should be utmost priority…….. Why????? Because a single illness can wipe out your entire saving and sabotage your entire financial goals.

So how to hedge your financial status from tsunami of medical expenses. The answer in present scenario is a good health insurance.

 

Is premium an additional burden on your income?

Instead of considering it as an burden consider it as investment. Govt wishes to motivate people for health insurance by giving additional tax benefit under section 80D.

 

How much deduction is allowed?

Scenario

Premium paid (Rs)

Deduction under 80D (Rs)

Self, family, children

Parents

Individual and parents below 60 years

25,000

25,000

50,000

Individual and family below 60 years but parents above 60 years

25,000

50,000

75,000

Both individual, family and parents above 60 years

50,000

50,000

1,00,000

Members of HUF

25,000

25,000

25,000

Non-resident individual

25,000

25,000

25,000

Click for detailed information Section 80D

 So instead of paying tax same amount can buy you a peace of mind.

 

Check list while buying Insurance policy?

            1. Choose the policy not just based on premium but, based on ease of settlement of claim, Customer support and types of health expenditures covered. Facility of add on and recharge if medical expense shoot up above sum insured.

            2. Choose the plan best suited for you. Policy can be for self, for spouse, for family (Spouse and upto children) and for parents. Many insurance provider give facility of add on members to the policy.

            3. While buying policy provide all information truly. If you are already suffering from illness or on medications then disclose it in your policy contract so as to avoid any failure of claims.

            4. Always read the fine print. In case of any doubt never hesitate to clarify from customer support.

            5. For cashless claim look the list of hospital in your city where Insurance service provider is empanelled and that empanelment is active.

            6. Check if ambulance, both road an air charges are covered in the policy or not.

            7. Make note of exclusion before choosing the policy compare with other insurance policy provider.

            8. Look for duration of treatment that will be covered. Many policies have upper cap on the duration of treatment.

            9. Once the policy bought review it thoroughly. If any doubt clarify it from customer support.

            10. Explain the details of the policy to your family members, empanelled hospital, amount that can be claimed and procedure of claim.... because if god forbids, you get ill then your family member should know how and to which hospital to take you and do the required formalities. This will make life easier for them in tough time. Better write down the details in your family diary.

So be healthy and be wealthy……………..

Useful links

Click to visit Insurance regulatory and development authority(IRDA) for further information.

Any queries or feedback

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