The advancements in technology have led to increasing health care cost. The need for health or medical insurance has grown among individuals all over India because it assures one about the quality treatment at a private hospital. For instance, if you have to get hospitalized for the treatment of a critical illness like a heart attack, stroke, kidney failure etc, then you can avail cashless treatment at a hospital of your choice. Not only this, you can file a claim with your insurer and get a reimbursement for both pre and post hospitalization expenses.
It is quite evident that not all families across India are enough financially strong to bear the expenses arising out of hospitalization due to a critical illness or any medical emergency. A mediclaim insurance policy, on the other hand, assures one about cashless treatment at a nearby hospital out of the list of network hospitals.
Despite medical bills and hospitalization expenses, a health or medical insurance policy brings tax benefit in its mixed bag of benefits. Under section 80D of Income Tax Act, 1961, you can avail tax benefit of up to Rs. 25, 000 on the premiums paid towards your health insurance. The same goes up to Rs. 30, 000 if you pay the premium for health insurance policy of your parents.
Diseases Covered by Medical Insurance
Medical insurance plans cover any illness causing hospitalization and bear expenses arising out of the treatment, including medical bills, and both pre and post hospitalization expenses (usually 30 days pre and 60 days post discharge from the hospital). Insurers offering medical insurance plans allow you to get coverage for pre-existing diseases if any, thereby paying the extra premium for the same. Thus, if you have a pre-existing disease or illness, then you are recommended to disclose it to your insurer. In case you do not disclose a pre-existing illness, then you are not eligible for availing treatment for against any medical emergency arising because of that.
How is coverage of medical insurance calculated?
The coverage offered by a mediclaim policy is subject to the policy type and the premium paid. Usually, the coverage offered also depends on the health status of the family. In case your family has an adverse history in terms of health, then you are suggested to choose a policy with higher coverage, which obviously requires you to pay a higher premium.
When to Buy Health Insurance Policy?
Although there is no perfect time for buying health insurance, you should buy one when you can afford the premium payments. If you have a health policy in your name, then you are assured for a free of cost medical check-ups (subject to the policy) as well as for cashless treatment at any of the network hospitals.
Despite health coverage, a mediclaim insurance policy offers tax benefits (as discussed above) too. Thus, buying a health plan with comprehensive coverage is highly recommended. At the same time, you need to keep your budget in mind.