IF there’s one thing that everyone needs in the present is financial security against health threats. With alarmingly increasing health problems and the past year of suffering from the coronavirus outbreak, a health insurance plan has become a crucial part of a financial plan.
But, finding the right health insurance plan in 2021 can be confusing since there is an abundance of options available. Ideally, one looks for medical insurance to enable access to quality healthcare facilities without exhausting their savings. This also depends on personal factors of the policy buyer’s such as their affordability, medical condition, etc.
Firstly, let’s understand how health insurance plan works to make the right purchase decision.
Health Insurance Plan
A health insurance plan is designed to cover essential healthcare expenses related to illness or accidents. It can act as a financial shock absorber and protect your savings from the impact of high medical costs. Generally, medical insurance covers the cost of treatment during hospitalisation with the sum assured that you select.
By paying an annual premium for the health insurance plan, you can remain protected for a prolonged period. Most insurers offer cashless treatment or reimbursement of the medical bills after the policyholder has received necessary medical care. You can buy a health insurance plan for yourself or cover family members, as per your choice.
Furthermore, the premiums paid towards a health insurance plan are eligible for tax deduction under Section 80D of the Income Tax Act, 1961.
Understanding the basics of a health insurance plan can help your decision to buy appropriate medical insurance for yourself or your family. Let’s look at some key things you should remember to get proper financial security for health purposes:
Being aware of personal needs and financial situation is the primary step to create a sound financial plan. Your income source, health condition and responsibilities in life are distinct. Therefore, knowing how it impacts your future in terms of money is essential to buy the right health insurance plan.
Not to mention, the cost of living and the rate of healthcare expense increasing steadily with time. In the absence of a comprehensive medical insurance, you are at a greater risk of facing immense financial burdens if a medical emergency arises. So, remember to be realistic when projecting the future requirements for more efficient planning.
Selecting the sum insured for a health insurance plan plays a key role to get adequate protection. Preferably, you should opt for a plan that provides maximum sum insured and maximum coverage to equip you for emergencies. Considering the impact of medical inflation, it is best to go with a high sum insured and avoid disappointments later.
Even the simplest of medical procedures can cost upto certain lakhs that can set your financial planning back significantly. Having the security of a health insurance plan can put your worries at rest. Hence, select a sum insured that you can depend on in a time of crisis.
Riders are add-ons that can be attached to the base health insurance plan to enhance the coverage. Based on what your requirements are, you can choose from the available riders to get additional protection with your medical insurance. Different insurance providers may offer riders of varying kinds with their health insurance plan.
Usually, these are the riders that are available with a health insurance plan:
You can create an efficient financial plan against possible health emergencies by choosing a combination of best-suited riders to your medical insurance.
Lastly, when you are looking for the best health insurance plan for yourself or family, comparing different plans can help. You can look at different parameters while comparing medical insurance by insurers such as:
These factors can be considered as the standard requirement of an optimal health insurance plan. Additionally, there are different types of COVID 19 insurance plans available with insurers that can strengthen your financial protection during uncertain times like this.
It is crucial to think ahead and be practical when it is about your health and financial safety. Buying the right health insurance plan today can prevent significant problems in the future. So, make sure to choose carefully and plan in the right way.
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