You may spent approx. 18,000 times a day! We’re not talking about bucks though, but about something even more precious is your health. An average human takes 12 breaths a minute and 17280 a day. That’s huge work! Good job!
As we don’t even realize that breath, we may not realize the value of it. Just like how we don’t understand the value of a sound and healthy life. Most of us we’re talking about here, not the ones who do live life mindfully, making every breath count.
Yes, life is more important & valuable, and you got it right, we’re Adviser after all. So somehow, we’ll get you the right protection and insurance.
So, why more wait let’s start or call us with the help of things you should know about a health insurance plan that need your attention before you choose any insurance.
What is the right age to buy a health insurance plan?
Everybody think that they are healthy, fit & happy so, forever. Even if age starts catching up with them, people think that they need to start worrying about health only after they reach 40.
However, research tells us different that 20% – 25% of heart attack patients are between 27 to 37 years.
That’s not only shocking, but also super scary. So, if you ask us, our answer is take a health insurance plan as early in life as possible. Owing to the kind of lifestyle and work pressure young people have today, the likelihood of diseases and unfortunate medical conditions have drastically increased.
Starting early also has the benefit of lower premiums.
The lower the age, the lower is the premium. So, you get a comprehensive cover for a much lesser price if you start early, since the risk is lower too.
What’s more, when you take a health insurance plan, you have a waiting period for some time for coverage to kick in.
For example, if your health insurance plan has maternity benefit, you have to wait for a minimum of 2 years to avail this benefit (this differs from one insurer to another). So, if you are 25 years now and have taken a health insurance plan with maternity benefit, you will have to wait till you are 27 years to avail this benefit.
Starting early helps you to endure the waiting period and get active covers when you actually need them.
Is only a corporate health insurance plan enough for me?
We are often satisfied with the health insurance plan that is provided by our company. But do we ever ask if it is enough?
The answer is, often it is not. The cover is standardised for all employees, and it is not customised according to your individual needs. Hence, there are high chances that you might be under-insured.
Only after factoring all of these, should you select a Sum Insured that can adequately cover you and help you in tough times.
With a corporate plan, that is usually not the case – it can leave you high and dry when you have left the job or are on a sabbatical.
The moment you leave your job, your corporate health insurance plan ceases to protect you. If anything, unfortunate happens by the time you join your new company, you are left vulnerable.
So, it is advisable to take a personal health insurance plan parallelly even if you have a corporate plan. Or at least have a top up plan, so when the base cover ceases to cover you, the top plan still has your back.
Should I take a floater policy or an individual policy?
An individual policy is definitely a winner, as it provides greater coverage and benefits. However, a floater policy can be taken depending on the family structure. If you want to cover your 5-year-old kid, then a floater policy makes more sense than buying an individual health policy. However, if you want to buy health insurance for your spouse, then a floater policy might not be enough for the both of you.
Let us explain this with an example. Suppose you and your spouse have a cover of 5 lacs for your health insurance. Unfortunately, your spouse falls sick and utilises the entire 5 lacs as claim. You will be left unprotected for the rest of the policy year.
In such cases, also having a restoration benefit in your health insurance policy is beneficial. A restoration benefit refills your Sum Insured once you exhaust it in a year. So, even if you claim your entire sum insured once, you or your family will not be left with a cover.
Also, for parents it is always better to take an individual policy for them and not include them in your floater policy. As they would have pre-existing diseases and require a higher claim owing to their age.
Which health insurer should I go ahead with?
We know you are flooded with options when you search for health insurance plans online. You do your research, check ratings and reviews, talk to people who have already taken insurance, and then make an informed choice.
To objectively assess a health insurer, check how easy their claim process is, how seamless their service is, how many network hospitals they have, who their third party is for tests and cashless services, and how simple their documentation is. You can make a dummy call to their customer care number to get a feel of their processes. If the process is not easy and simple or the documentation not hassle-free, you will experience stress at the moment of truth, come claim time!
Here are few things in people’s mind regarding their health insurance.
Life doesn’t always go as per plan, you don’t plan to get unwell or hospitalised. But the whole point of having a health insurance policy is to protect you
in these times.
- Health insurance policy protects your savings against unplanned medical costs.
- Health insurance policy comes to your rescue in case of an illness or accident.
- Your health insurance policy may also have benefits like a free annual health check-up and benefits like OPD (Out-patient department) benefit, Day-care treatment etc… which don’t even need hospitalisation.
- If you start a health insurance policy at a young age, the insurance premiums are lower and you cross the waiting period while you are still in good health.
- If you have taken a health insurance policy for your family, you secure them against unfortunate times and your savings against a big dent.
What are the common types of health insurance plans and benefits in India?
1. Family floater or Individual plan
2. Senior citizen plans
3. Pre-existing disease cover plans
4. Critical illness plans
5. Maternity benefit
6. Daily hospital cash benefit
7. OPD Benefit
8. AYUSH Benefit
Tax benefits for Health Insurance
The government encourages people to secure their health which is why under the Section 80D of the Income Tax Act, you can be eligible for some tax exemptions. Time to wrap yourself around some common things you should know:
- If you buy a health insurance policy for yourself, your spouse and, children and parents, you are eligible for a tax exemption under Section 80D of Income Tax Act of up to 25,000.
- If you have parents above the age of 80 years and they don’t have a any health insurance policy, even then you get a tax exemption of the expenditure towards their treatment or check-ups.
- If the taxpayer is a senior citizen, the exemption limit is increased to 30,000 (Rs 50,000 from A.Y 2019-20) from 25,000.
- The tax exemption on the premium payment for the health insurance policy is only valid if the payment is done by cheque or electronically, not by cash.
- You cannot claim tax exemption for the premium paid by your employer under the group health insurance policy of the employer.
- You cannot claim tax exemption for the service tax paid on the premium of the health insurance policy.