Health insurance is referred to as an agreement in which the insurance provider agrees to compensate for medical expenses of covered members in case they fall ill or meet with an accident leading to hospitalization. Typically, insurance companies collaborate with major hospitals in the city to extend cashless treatment to insured individuals.

The Prominence of a Health Insurance Plan

Following are some important reasons why you need to invest in a health insurance plan:

  • Provides Financial Security

The cost of receiving quality healthcare is rapidly increasing in the country. In fact, even small treatments and procedures can end up costing thousands, if not lakhs, of rupees. When you invest in a health insurance plan, you pay a certain amount as a premium that depends on the insured sum and the age of the eldest insured member.

And in case you need medical treatment, a health insurance company will cover the expenses up to the insured sum. So, you can receive quality medical care without having to worry about the money.

  • Different Types of Policies

The insurance companies today have come with a wide range of health insurance policies. Whether it is individual plans, child plans, or family health plans, you will have different options to choose from. Each of these plans caters to different sets of health needs. This allows you to choose a customized plan that caters to your requirements. This made it easier for people to invest in a medical insurance plan.

  • Tax Benefits

Another reason to consider the health insurance plan is because of the tax benefits that these plans offer. According to the Income Tax Act’s section 80D, health insurance premiums are exempted from tax up to Rs. 25,000. Moreover, if the premium is a purchase for your senior parents, the exemption value increases to Rs. 50,000.

  • You Will Be Able To Treatment Of Your Choice

When you have an effective health insurance plan, you have the financial resources to get the treatment from anywhere in the country. You no longer have to compromise on the treatment. You receive a lump sum payout after the diagnosis, which can be used for your treatment.

  • High Coverage At Lower Cost

Health insurance plans with fixed benefits provide higher coverage amounts with a lower premium. This allows you to save money and get care-free diagnosis and treatment on your medical ailments. Additionally, if you are making smaller claims or diagnosis of disability due to an accident, your premium is completely waived off.

Considering our fast-paced modern lifestyle, the need for a health insurance plan has become vital. When it comes to choosing a medical insurance plan, you will come across different types of plans provided by various insurance providers. The first step to ensure you get maximum ROI is to select a reliable insurance provider. Do thorough research and choose a company that has a good market reputation. Moreover, when assessing the health insurance plan, make sure to read the terms and conditions properly, and understand everything before making the final decision.