Insurance
•01 min read
Did you know medical inflation is at an all-time high in India? It stands at 14% right now, almost 2x retail inflation. And did you know that the cost of hospitalisation has more than doubled over the past 5 years? [Source: Firstpost]
With medical costs constantly rising, getting access to high-quality care can get quite stressful. In fact, a single medical emergency can be enough to make a big dent in your savings. And so, owning a good health insurance plan has become a necessity, to tackle unexpected contingencies and health situations with ease.
Let’s understand what health insurance is and why you need it as a part of your financial planning.
Health insurance is a contract between you and the insurance company, wherein the insurance company promises to cover your medical expenses in exchange for a premium. It is a sturdy financial safety net that protects you from the onslaught of big medical bills and unforeseen emergencies.
As mentioned before, when you buy health insurance, the insurance company agrees to cover your medical expenses. So, if you require medical care during the policy period, the costs of the same will be taken care of by your health cover.
Health insurance covers many facets of medical care, like hospital stays, surgery, daycare treatments, room rent, ICU fees, diagnostic tests, post-recovery care, medication, and more.
For example, Arya buys a health insurance plan with a cover amount of ₹5 lakh. After a few months, she is advised to undergo cataract surgery, the cost of which comes up to ₹25,000. Her health insurance plan covers the same.
Here are a few reasons why health insurance is an important investment:
You never can know when a medical emergency may occur. And a serious illness or injury can lead to high medical bills, which can quickly eat into your savings. Health insurance helps you take care of medical costs like hospital stays, room rent, ICU charges, and more.
Having a good health insurance cover in place helps you get quality medical care, so you can focus on your recovery and not the costs. It also gives you access to a network of hospitals, helping you avail hassle-free cashless treatments.
Health insurance can also cover preventive care services like vaccinations and diagnostic tests, helping you detect and deal with medical issues early.
You can also get tax benefits up to ₹75,000 under Section 80D of the Income Tax Act, giving you an extra reward for getting health insurance
In all, getting a good health insurance plan gives you peace of mind and the confidence to deal with any medical situation that may come your way.
