The concept of health insurance is new in India but its awareness is growing fast. Health insurance comes in handy in case of severe emergencies. Life is unpredictable, insurance can make it safe and secure from bearing huge financial loss. The type and amount of health care costs that will be covered by the health insurance plan are specified in advance. Health plans are available in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.
Medical expenses are sky high these days. An appointment with a doctor might churn out big bucks. The elaborate medical treatment expenses could eat into your savings meant for the future. Health insurance policy kicks in to ensure that you get the required treatment and your pocket is still under control.
Buying health insurance is important because the coverage helps people get timely medical care and improve lives and health. It covers the risk of financial difficulties in the event of long illness. The awareness has been enormous in the last couple of years. This must have been in response to the series of uncertainties people have observed in recent times like the terror attacks.
Benefit depends on the policy you choose and the coverage it provides. Here is a list of basic coverage provided by most of the health policies.
• It helps securing a better future by paying a fraction as an expense today called the premium.
• It reduces saving huge amount of financial losses, risk of financial breakdown in case of expensive medical and post-illness care.
• It definitely induces a sense of security to the insured.
• It provides financial security to the family members.
• It covers your hospitalization and medical bills.
•It also covers disability and custodial bills.
• You can avail tax benefits on the premium paid under section 80D of the Income Tax Act.
• The best factor, you can also opt for health insurance policy even after the age of 60. A health insurance policy is a contract between an insurance company and an individual. Sometimes it is associated with covering disability and custodial needs. The contract is renewable annually.
Addy Smith is author of this article who is working with an insurance broker firm. In this article, she has discussed why to buy health insurance policy. For more information, please visit www.policybazaar.com.