Insurance is a basic need for all human being. Insurance gives us the guaranteed protection from different types of difficulties which come in our day to day life. It works as the guarantee card. It gives us the guarantee of giving a predetermined amount/sum at the time when we are suffering from bad happening. In this article we will learn about the health insurance and its different aspects.
What do you mean by Health Insurance?
Health Insurance in India is a contract between the Insurance Company (insurer) & Individual/ group in which insurance company agrees to cover medical expenses of individual / group during the policy period. To take this benefit we have to pay a certain amount of money called premium to the insurance company. In return, Insurance Company takes the burden of our medical expenses according to the contract signed by us, when we become ill in the future.
Importance of Health Insurance for Us
Health Insurance is a need for all of us. As due to increasing pollution, modernization of our living standard, hypertension; we become ill very easily. It might happen at that time, we do not have enough money to take good healthcare & hospitalization facility. At that time health insurance helps us to get good hospitalization facilities. It normally covers the expenses of room, boarding, Nursing, Fee of Doctors, Drugs, blood, oxygen, operations, Radio therapy and other different expenses.
Types of Health Insurance Policies
Today, different types of health insurance plans are available in the market. We could choose an insurance policy according to our needs & convenience. Amount of premium of these policies increases with the increase in the age of the people, as the occurrence of miss happenings are also increases with the increasing age. Previous medical history also plays an important role in deciding the premium of the policy.
- Hospitalization Policy: It covers the total cost of hospitalization during the policy period. Such policies are available, both on individual and family floater basis.
- Critical Illness Policy: It provides coverage to the insured in case of critical illnesses such as heart attack, organ transplants, kidney failure etc.
There are other types of policies also available in the market according to the needs & convenience of target customers like senior citizens etc.
Maximum Number of Claims
There is not any limit on the maximum number of claims, unless it is specified on the policy documents
Tax benefits for Health Insurance
Tax benefits are applicable to health insurance according to section 80 D of Income Tax Act.
Tax benefit amount are as follows
- If you pay the health insurance premium on behalf of self, spouse and children then the annual deduction from the taxable income will be Rs. 15,000.
- Deduction is Rs 20,000 for senior citizens
- You could take an additional benefit of Rs 15,000 if you will pay premium of health insurance on behalf of you parents and this benefit will become Rs. 20,000 if your parents are senior citizens.
No one of us knows about the coming health problems and medical emergencies of our life. Taking a health insurance is much more affordable than facing these problems & emergencies without any life cover. So, take a health insurance as soon as possible for you and your family.