Health insurance protects unaffordable medical expenses and unexpected accidents. It has become an essential part of financial planning.
Some companies offer policies to young individuals without requiring medical tests, as they are less likely to develop chronic health problems.
Taking an insurance policy early can help secure a lower premium and minimize the financial burden upon renewal.
It’s worth noting that medical expenses can now be covered by insurance without the 24-hour hospitalization requirement.
Additionally, health insurance has tax benefits. Understanding the various uses and benefits of health insurance is essential.
Knowing About OPD: Many individuals visit hospitals for minor health issues, which can be costly. Some people believe insurance does not cover outpatient department (OPD) treatments.
However, individuals can receive full benefits, albeit with a slightly increased premium, by opting for an OPD supplementary policy when taking out insurance.
When selecting a policy, it’s crucial to consider your financial situation and choose a policy that fits your needs and budget.
It’s advisable only to choose a policy from a company with a successful claim rate in the market. It’s essential to research all available options and pay premiums only within your budget while considering the extra amenities offered.
Some policies cover a percentage of treatment costs, which can reduce the premium, but it’s generally better to avoid such offers.
Tax Exemption and Switching Policies: Under Section 80D, the premium paid on a health insurance policy is exempt from income tax.
Individuals can claim a tax deduction of up to Rs. 25,000 for a policy covering themselves and their families and up to Rs. 50,000 when taking a policy for parents.
Some insurance companies offer the same policy at a lower price, and if conditions are suitable, you can switch to other companies upon policy renewal.
However, it’s essential to avoid common mistakes regarding health insurance. Fully disclosing health details and food habits and understanding waiting periods for specific diseases are vital to ensure successful claims.
Pre-existing Diseases and Coverage Details: When applying for insurance, it’s crucial to disclose pre-existing diseases. Insurance companies consider all aspects of your health.
They do not provide claim coverage for pre-existing diseases, so it’s essential to understand the policy details before buying.