With the rising cost of healthcare services and increasing diseases, purchasing a health insurance plan is of utmost importance. The health insurance policy reimburses the funds to the insured to meet medical expenses. This is just one of the benefits of a health insurance policy.
If you haven’t already invested in a health insurance plan, go through the 5 reasons highlighted in this article to buy a health insurance plan.
What Are the 5 Reasons to Purchase a Health Insurance Plan?
Listed below are the five reasons that makes buying a health insurance policy for yourself and your family necessary:
- Provides financial protection
One of the most significant benefits of a health insurance policy is monetary coverage to meet medical contingencies. A health insurance policy covers costs related to hospitalisation, diagnosis, and medicines among others. It lowers the financial burden of paying expensive medical bills.
- Health insurance is a necessity due to changing lifestyle
The shift in lifestyle has led to the rise in diseases even among the young population. Busy work schedules, long commutes, and irregular eating habits contribute to rising health problems. Therefore, purchasing a health insurance policy is essential to protect yourself financially in case of illness.
- Inflationary rise in medical expenses
According to data published in the ‘Business Standard’, the inflationary rise in medical costs has remained above 6% over the last one year. Savings instruments are not sufficient to meet these increasing medical expenses. In this regard, investing in a health insurance policy is an appropriate financial solution that will assist you in overcoming this inflationary impact on hospital bills.
- Offers tax benefits
A health insurance policy not only extends financial security against rising medical costs but also provides tax relief. If you are within the age limit of 60, you can claim a tax deduction for a maximum of Rs. 25,000 on the premium paid towards a health insurance policy, according to Section 80D of the Income Tax Act. You can claim this tax deduction on an insurance policy for your own or that of your child or spouse.
Further, you can claim an additional tax deduction of Rs. 50,000 if you purchase a health insurance policy for your parents whose age limit is 60 and above. This tax deduction applies to annual premium payments towards a health insurance plan or expenses in a preventive medical check-up of your senior citizen parents.
- Get cost-effective health insurance policies at an early age
The premium of a health insurance policy depends on your medical history, age, residential city etc. For instance, the premium payable towards a health insurance policy increases with age. Therefore, if you purchase a health insurance plan early in your life, you will incur less expenditure on a health insurance premiums due to a lower risk of falling ill.
If you are looking to buy a health insurance plan, make sure to compare different insurers on platforms like Bajaj MARKETS. Accordingly, select the one that suits your requirement.