health insurance policy

When it comes to medical insurance, the best policy is the one that covers your requirements the best. Health is wealth is the ultimate mantra, yet modern times will convince you to buy a health insurance policy. While health insurance and medical insurance sound synonymous, both are different terminologies. Health insurance is a blanket, whereas medical insurance is specific to medical claims. 

It is noteworthy to mention that there is an increased awareness among individuals for health insurance due to the Covid-19 outbreak and the ongoing uncertainty. Insurance providers are adapting and re-orienting to the new norms and the new normal to accommodate and serve citizens who have begun realizing the importance of an adequate financial backup in the form of the best medical claim policy in India. Best plan inquiries with service providers have significantly risen in the health crisis with utmost priority to health concerns. 

As different individuals have different perceptions about medical insurance, the chances are high that some people believe one or more myths. It does not end in just the belief but also insurance-related actions.

Here are some common myths about health insurance and its coverage:

Myth 1: Personal health coverage is not required as my family members and I are already insured under the organization’s health insurance plan  

Most organizations are providing their employees with medical insurance these days. Just because you have an Employee Health Insurance plan, you can not undervalue the importance of a personal health insurance policy. Firstly, the organization policy offers coverage only until you are an organization’s employee. Secondly, Employee Health Insurance may not provide adequate financial backup to cover all of your family members. It is always ideal to not depend on the Employer’s Health Insurance policy but buy a health insurance policy for you and your family members exclusively. 

Myth 2: I am young, hale, hearty, and healthy, hence I do not require a health insurance 

The reality is that it is a wise decision in the purview of a long-term strategy to buy a health insurance plan while you are young. 

Firstly, the premium of health insurance plans at an early age is very affordable.

Secondly, it also attracts reward points such as loyalty and no-claim bonuses based on the insurer and the insurance policy. 

Thirdly, you may serve out the waiting period for a pre-existing disease that helps you avail of complete health coverage sooner. The waiting periods will already be over by the time you seek benefits under the plan!

All these points mentioned above are relevant for your family also. This helps to complete the waiting period when you decide to have kids. It is rare to find maternity cover without a waiting period because most insurers consider pregnancy as a pre-existing condition.

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Myth 3: Health insurance plan starts from the day you have taken the policy 

It takes almost 30 days to activate any health insurance policy. The pre-existing disease coverage may come with a waiting period of about 2-4 years. Hence, it is essential to read all scheme-related documents and the terms and conditions before opting for a health insurance policy. 

Myth 4: Health Insurance is not tax-deductible 

Health insurance is tax-deductible in terms of premium paid, which qualifies for benefits under section 80D. All health insurance plan comes with a tax deduction, be it a family floater or an individual policy.

  • The deduction is up to Rs. 25,000 if the insurer’s age is below 60 years in the case of individual health insurance. 
  • For family insurance plans, including senior citizens, the deductions are up to Rs. 75,000. 
  • If you pay premiums only for your parents above 60 years, the tax benefit is up to Rs. 50,000. 

Myth 5: Health insurance plan cannot be upgraded 

The fact is that you may choose to upgrade a health insurance plan at any time of the policy. You can check and verify available offers and options with the insurer. Under a specific period of enrolment, certain insurance providers offer an up-gradation. Healthcare inflation is growing, so is the need for personal and family coverage. You can opt to include new members of the family in the policy.

It is advisable to consult an insurance aggregator or provider to cut through the hearsay and myths about health insurance. 

Thus, it is essential to compare different medical insurance policies to find the best insurance plans most suited for you to offer the ideal coverage at an affordable price to fulfill your needs. You must compare and understand the inclusions and exclusions of different plans.

By admin