We may think that death is the biggest risk that we ever face in life. Unfortunately that is not true. A critical illness is a much bigger risk and a majority of Indians spend around 70% of their total household savings during medical emergencies.
Why then are health insurance plans not popular? This is simply because while people are aware about Mediclaim plans they aren’t aware of the benefits of health insurance plans, which are offered by life insurance companies.
The mass population does not know that Life insurance health plans are one of the most cost effective ways of protecting them financially, once diagnosed with a serious and critical illness.
Difference between health insurance plans and mediclaim plans
Mediclaim plans cover the cost of treatment when one is hospitalized upon submission of actual bills or through cash-less routes directly, to the hospital.
However, the life insurance health plans have nothing to do with your treatment at hospital as it reimburses the insurance amount only on the diagnosis of a critical illness, provided the health plan covers it.
Why is health insurance so important?
Today’s fast changing lifestyle has made us vulnerable to innumerable critical illnesses like heart conditions, tumors or cancer. While survival rates have increased dramatically, courtesy of advanced medical treatments, what is missing, is that upon survival, supporting yourself financially could be very challenging. The survival costs can be expenses on prolonged treatment at home, and loss of pay due to long or total absence from work; meeting other expenses for the family etc.
This is where the health insurance helps you.
The health insurance plan ensures that the health cover sum is paid to you immediately on diagnosis of the critical illness.
What are the alluring benefits of health insurance?
Protection against major critical illnesses: Health insurance covers almost all commonly known diseases as well as very uncommon critical illnesses like, Permanent Paralysis of Limbs, Alzheimer’s Disease, Loss of limbs, Kidney Failure requiring Regular Dialysis, Parkinson’s Disease, Deafness, Loss of Speech, Chronic Recurrent Pancreatitis, Ulcerative Colitis, Major Burns, Major Organ/ Bone Marrow Transplant, Blindness, Primary Pulmonary Hypertension, and Surgery to Aorta and many more.
However, you must opt for the plan which covers the maximum types of such illnesses.
Benefits continue on paid up policy: If you stop paying the premiums during the term period, the same can be treated as reduced paid up in case you have paid the minimum stipulated number of premiums. Therefore, the cover continues, albeit with reduced paid-up sum assured.
Best option for income replacement: The amount received post diagnosis, provides great relief as it helps you with meeting day to day expenses and recover loss of income that arises due to long absence from work due to prolonged treatment at home.
Premiums remain unchanged even if health condition changes: The premiums once fixed continues till end of the plan tenure. Therefore, one could buy the plan when they’re young as the premium will be low and this could continue till the maximum period, that is allowed by the life insurance company.
Maximum maturity age: You can take a health plan coverage till the age of 70-75. Therefore, you need not depend on your family in case of sudden emergency expenses that might arise due to the diagnosis of a critical illness.
Tax benefits – Under section 80D of the Income Tax Act 1961, the income tax benefit is allowed upto Rs 25,000 per financial year (based on last budget) on the premiums paid.
We can conclude, indeed that to have a peaceful and enjoyable life, taking both the plans – a health plan and a life insurance plan – is a must, as both are complementary to each other.
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