Microinsurance India

4 Things To Know About Health Insurance

Health insurance does come with many advantages, and one of the major benefits is the tax exemption. There are other important things to know about health insurance or mediclaim in India are given below.

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  1. Resort during medical emergencies– With increasing medical issues and healthcare costs, it becomes difficult to have all expenses met. Health insurance acts as a savior in such cases. Many times, due to sudden medical emergencies, people find it daunting to arrange for funds. In such situations, having a health insurance makes sense. India is a home to almost 20% of middle-class people (McKinsey and company 2015), it is fairly not possible for many to spontaneously invest a heavy amount for medical emergencies. Medical emergencies can cost somewhere around Rs 80,000 to 1 lakh and even more. If insured under a health insurance policy, it becomes easier for an individual or family to make the first deposition and proceed with medical assistance. Having a health insurance also brushes off the psychological tension and lets one make a sensible monetary decision.
  1. Preventive care– A lot of times medical assistance becomes expensive, and there is a sense of compromise in terms of medical care. Many ailments and cases require intensive care and assistance, but it becomes an expensive affair in the absence of any insurance. People think of cheaper options and end up sacrificing not only health, but unmanaged wealth investment. If an individual and his family members are insured under health insurance coverage, then treatment becomes uncompromised and up to mark. For instance, in case any individual has been suffering from some neurological disorder, it becomes a daily affair to visit the doctor and get assistance. Neurological disorders cannot be cured in a day and therefore requires medical checkups often and care almost on a daily basis. If any individual suffering from the neurological disorder is not insured, then the entire treatment becomes a far more expensive matter. Regular visits too cost heavy on the pocket. Since insurance is an advance plan made for such cases; it gives time for recovery too.
  1. Critical cases secured for a lifetime– Some diseases and cases require a lifetime care and assistance, repetitive care even if periodical, becomes hefty on the pocket. Under Section 80DDB and 80U a set of ailments and critical cases are mentioned; these cases are majorly long-term and require gradual progressive treatment that may well last a lifetime. Since life is important, it is of utter importance to secure it until the end; health insurance becomes a savior and does the needful. In the case of malignant cancer for say, the relapse is expected to happen in the future, and therefore, one needs to be fully insured in order to face such situations. Health insurance policies can be continued and kept for many such situations. Health insurance acts as a rapid action force in case of long-term disease and medical cases.
  1. Tax benefits: Now, at last, let’s know tax advantages offered by health insurance policies under Section 80D. The premium paid for health insurance policies enjoys tax benefits by lowering your taxable income and at this moment, tax liability. Here are some of the tax benefits offered by health insurance policies:
CasesSelf, Spouse, and Dependent ParentsParents (both dependent and non-dependent)Total Tax Deduction
No one in the family is above the age of 60Rs 25,000Rs 25,000Rs 50,000
Except parents, everyone is below 60Rs 25,000Rs 30,000Rs 55,000
All family members are above 60Rs 30,000Rs 30,000Rs 60,000


Health insurance does provide with a highly beneficial tax deduction, but there is much more that makes complete sense to buy health insurance policies. It happens to be one of the best investments for people as medical inflation is rising at an alarming rate.

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