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What Is Health Insurance Coverage?

What Is Health Insurance Coverage?
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A health insurance plan covers medical expenditures incurred as a result of an accident, illness, or injury. An individual can buy such insurance for a certain period of time by paying monthly or annual premiums.

If an insured is in an accident or is diagnosed with a serious illness during this time, the insurance company will cover the cost of treatment. You may also take advantage of many other benefits that come with health insurance coverage.

Why is health insurance important?

Health insurance has become a necessity with the ever-increasing cost of healthcare in our country and the ever-increasing incidences of diseases. People with health insurance coverage have a much-needed financial safety net in a medical emergency. Purchasing health insurance is one way to financially prepare for unforeseeable health risks.

Various types of health insurance plans are available, including individual health insurance, family health insurance, critical illness insurance, and others. Buying healthcare coverage is an important aspect of any financial strategy.

There are several reasons to get health insurance, and if you have a family to support, you may buy family health insurance to cover your entire family’s medical requirements.

Let’s look at some of the strongest reasons for getting health insurance.

1. Change in lifestyle

The prevalence of lifestyle illnesses is increasing, particularly among people under 45. Diabetes, obesity, respiratory problems, and heart disease are all common in the elderly population, but they are also becoming more common in the younger population. Investing in a health plan that includes regular medical testing can help you detect illnesses earlier and reduce medical bills, giving you one less thing to stress about.

2. High medical costs

As medical technology advances and illness rates rise, so does the cost of treatment. A doctor’s consultation, diagnostic tests, ambulance fees, operating room fees, medications, lodging rent, and other expenses are all rising. You can avoid the stress of medical costs by paying a low annual health insurance premium and receiving high-quality care without having to worry about the cost.

3. Coverage for Serious Illness

Most healthcare plans include coverage for severe conditions at an extra expense. Given the increased prevalence of lifestyle-related disorders, this is an important insurance policy to have today. You will get a lump sum payment if you are diagnosed with one of the specified serious diseases. Critical illness coverage is important in getting health insurance because dealing with and managing these illnesses can be costly.

4. Savings on taxes

Premiums paid to maintain health insurance plans are eligible for tax deductions in many places worldwide. 

Example 1 

Under Section 80D of the Indian Income Tax Act, 1961, you can deduct up to INR 25,000 per year from your taxable income for a plan for yourself, your spouse, your children, and your parents under 60. You can claim an extra INR 50,000 discount if you also buy coverage for a parent over 60.

Example 2 

According to the Inland Revenue (Amendment) (No. 8) Ordinance 2018 in Hong Kong, you may apply for a deduction for qualifying premiums paid by you or your spouse (not being a spouse living apart) as a policyholder of a specific kind of Health Insurance for an insured person. The specified maximum deduction is HK$8,000 per insured person.

Featured Image by Pixy.org

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