Why get Health Insurance?
- To Protect your savings- Don’t break your life savings over unforeseen events.
- To Fight Lifestyle Diseases- Lifestyle diseases are on the rise, especially among people under the age of 45. Illnesses like diabetes, obesity, respiratory problems, heart disease, all of which are prevalent among the older generation, are now rampant in younger people too.
- To Safeguard Family- Family Plans can protect your entire family under a single premium.
- To deal with Medical Inflation- Rising Medical Costs has lead to Cost of treatment to double in 5 years 1 . Health insurance covers various expenses from cost of treatment and equipment to medicines and helps you overcome the effects of inflation.
- For Tax Exemptions- You can claim tax deduction for up to ?25,000 under Section 80D on the premium paid towards your own policy or that of your spouse or children.
I can buy other investments and use the growth in those investments to pay for Hospital Bills. Why get Health insurance over them?
- While other investments may provide growth, having a health insurance along with them is beneficial as a health insurance provides many features such as cashless treatment, no claim bonus and covering costs for pre and post hospitalization treatment.
- Returns from investments may prove inadequate. Medical inflation in India is the highest in Asia at 14% whereas the Nifty50 CAGR is 12%.
- Keep Health insurance and Investing separate. Investing is for returns whereas health Insurance is for peace of mind in security.
I have a Health Insurance policy given by my company. Should I still get a personal plan?
YES!
- Corporate plans can have a lower coverage, which may prove insufficient for both you and your family.
- Corporate plans are only applicable till you are with the company. If you resign or get fired, corporate plan gets terminated.
- Even if these may not be applicable to your corporate plan, it is better to have a retail plan as a backup if your corporate plan gets rejected.
- Also Retail Plans can be tailored to your needs and requirements as you get a lot of options to choose from
