INSUBCONTINENT EXCLUSIVE:
Investment in medical insurance also entails income tax benefits for customer.Medical insurance, a type of insurance coverage that pays for
medical expenses, has become a necessity today
Under a medical insurance policy, insurer reimburses expenses incurred by policyholder on illness and injury, or pays care provider directly
Subscription to a medical insurance plan by individuals ensures compensation for them for medical expenses that occur in unforeseen events,
affecting one's savings and damaging his or her financial goals
Although investment in medical insurance also entails income tax benefits for customer, a person should refrain from buying a policy solely
for its income tax benefits, say experts
Having a medical insurance policy is important, but a thorough understanding of its suitability with one's situation maximises its
outcome.In current scenario, buying a medical insurance plan is not only an option but also a necessity
To get best medical facilities at time of need, and without burning a hole in pocket, one must have medical insurance, say experts
It is also advisable to plan for healthcare at an early stage in life, in preparing against possibility of a medical emergency
Needless to say, allotting a portion of savings to medical insurance is paramount.With growing age, one's health becomes susceptible to
illness and may require medical attention
Financial strength of a household against unwarranted expense arising out of a person's medical condition may not be same in all stages of
This makes subscription to a medical insurance plan an absolute necessity
It is all more important for senior citizens (persons above 60 years of age) to be insured and, therefore, protected against any health
Insurers like IFFCO Tokio today provide a variety of medical insurance plans for retail customers to choose from, offering flexibility in
different kinds of coverage and benefits
But only having an understanding of both kind and complexity of medical insurance policies today as well as one's own financial goals
vis-a-vis household income can lead to a good decision, say experts.Here are 10 reasons why medical insurance is important today:1
Financial stability: Expenses with respect to a medical emergency may result in severe financial distress
Purchase of a medical insurance plan as per one's requirement ensures financial stability against such an event
For example, savings with an aim to meet one's retirement goals or education of children can take a significant hit in event of a medical
Cashless facility: Many insurers today offer a cashless facility to their customers, wherein insurance company works in collaboration with
various hospital networks
Typically, expenses incurred against treatment within network assigned to policy are paid for directly by insurer, without requiring
policyholder to spend from his or her pocket under certain conditions
This feature alone can be very effective in protecting savings meant for planned events in one's life.3
Hospitalisation expenses: Hospitalisation expenses, especially in private sector, range from costs related to doctor's fee and medical tests
Ever-growing demand for medical facilities has pushed cost to end-user higher
A good health insurance policy usually cover expenses made towards doctor's consultation fees, and costs towards medical tests and
Pre- and post-hospitalisation coverage: Most insurers today provide cover on both pre- and post-hospitalisation expenses in their individual
and group medical insurance plans
Pre-hospitalisation expenses refer to costs incurred before a patient is moved to a hospital for treatment which may include medical tests
and check-ups prior to admission
Similar expenses related to follow-up check-ups and tests, and so forth, are incurred after patient has been discharged from institution
Such medical expenses are known as post-hospitalisation expenses.5
Transportation charges: Many insurance companies also cover amount paid to ambulance towards transportation of insured
One should check components of coverage provided by insurer in detail before buying a medical insurance plan, say experts.6
Medical check-up: Some of insurance policies may even provide option of health check-ups.7
Quality of treatment: There may be instances that an individual may have to compromise on treatment plan due to lack of funds
By choosing most appropriate medical insurance plan according to one's needs and financial position, policyholder can ensure maximum
protection against illness, say experts.8
Reimbursement: Typically, in case of a medical emergency leading to admission of insured in a hospital outside network served by insurer,
policyholder is required to make all payments against treatment received
In such a scenario, insurer compensates policyholder for eligible expenses under plan on submission of necessary documentation
This is known as reimbursement
In this mode, policyholder is required to bear burden of expenses at least at first, and gets paid subsequently for eligible expenses
Types of medical insurance plans: Insurance policies today come in all sizes and forms, offering a wide range of facilities to customer
This is also why learning about all features about a medical insurance policy prior to selecting a medical insurance product is important,
Tax benefit: The premium paid on medical insurance is eligible for income tax exemption under Section 80D of Income Tax Act
Medical insurance may often also be included in employer benefit packages as a means of enticing quality employees
The cost of medical insurance premiums is deductible to payer, and benefits received are tax-free.The importance of having medical insurance
Rising medical costs can affect a lifetime of savings with just one major medical emergency
Medical insurance can help in paying for these costs
There are several means by which an individual can get medical insurance
A person may pay for his or her own insurance or receive medical insurance as part of an employment package
One should read contract carefully and understand all terms and conditions that before selecting a health program, experts advise.General
insurance companies, such as IFFCO Tokio, offer a range of medical insurance and other insurance products.
