Can New Health Insurance Plan Help You Save Money?

Hospital bills are expensive.

You worked hard, provided well for your family, and planned well for future expenses but only a few trips to hospitals will put your entire plan in jeopardy.

Depending on the illness, medication and treatments are costly. Most people can only afford to fall ill a few times.

While our bodies may be robust enough to withstand basic illnesses or a common cold, it’s hard to predict the life-changing impact of chronic disease. Most of us are very optimistic about our health, making us ill-prepared for serious health issues. Health insurance protects you from going bankrupt IF unfortunate hospital visits are to happen.

Health insurance plans help you manage your financial future by providing a way to save for retirement. This means that if you have a severe illness or accident, you can pay for treatment without worrying about how much it will cost.

How Can You Save Money Through Health Insurance Plans?

You know you need health insurance, but we bet you didn't realize how much it could help you save. Here are some tips that can help you get the best plan:

1) Employer’s Offered Insurance Plan

This is the cheapest option if you are young, no dependent, and you are healthy. However, if you intend to change your job, you never know what kind of insurance policy your prospective employer will provide. In your current company, you may get insurance coverage of Rs. 10 lakhs, but in future companies, they may only give you coverage of Rs. 3 lakhs. So chose wisely.

2) Start As Soon As Possible

If you haven't already started your health insurance plan at work, do so now. Many of the insurances are now being offered at the cost of daily coffee.

3) Take Advantage Of The Cumulative Bonus Offered

Many of the private players offer no-claim bonuses wherein if you do not claim for a year, you get a bonus of up to 60% of the insurance coverage. That means if you have a policy of Rs. 5 lakhs, and there is no claim for a year, your insurance coverage for next year would be Rs. 8 lakhs (Premium still will be on Rs. 5 lakhs).

 4) Take Separate Insurance Cover For Your Parents

It's essential to ensure that your parents have their health insurance policy. It is more likely that they will need to use the policy than you. Now if they have a separate policy and they need to take a claim, you will not need to give up your no-claim bonus. You will still get a family discount, but different policies and a higher no-claim bonus.

5) Free Health Checkup

Many private insurance companies offer free medical check-ups and doctor’s consultations. Instead of spending almost Rs. 1,000 every time for a blood checkup, you may get it done under your health insurance.

6) Indulge Yourself in Healthy Habits

Healthy habits such as eating healthy meals, exercising regularly, and getting enough sleep are all steps towards lowering your risk of getting sick in the first place. In addition, these things will help keep you from spending money on expensive doctor visits or prescription drugs later down the road.

How Can You Save On Taxes By Investing In A Health Insurance Plan?

Under Section 80D of the Income Tax Act of 1961, the government gives citizens the provision of a tax exemption if they have applied for health insurance. This is one of the most significant advantages of investing in health insurance. As for the numbers, if you have paid a premium on yourself, your spouse, and a child in one financial year, you can claim up to ₹25,000 in tax breaks.

In addition, if you have paid an extra premium for your parents, you can claim an extra ₹25,000 to ₹30,000 in tax breaks, depending on your parents' age.

Along with the tax break, you can get by paying the life insurance premium, you can also avail of tax exemptions under Section 80DD and Section 80DDB for any expenses incurred by you for their medical treatment, which includes nursing, training, as well as rehabilitation of dependents who are disabled.

However, getting a medical certificate from a government hospital is mandatory to claim the deduction.

Conclusion

It's important to remember that not all health insurance plans are created equal. For example, some companies offer more generous benefits than others—and in some cases, these benefits may be worth paying for even if their premiums are higher than those offered by competitors who don't provide as many perks or services as well as other things like dental coverage or vision plans at no additional cost).

Most insurance programs start coverage for pre-existing ailments from around the 48-month mark. Specific insurance programs cover the same, from 24-36 months onwards as well. But irrespective of the plan, disclosing any pre-existing ailments is essential for a smooth claim settlement process when you sign up for the plan.

With good insurance policies in the market like HDFC, ICICI, Religare (now known as Care), and Max Bupa, there are plenty out there to secure both your health and your wealth.

So be wise, be healthy.

For reaching out to me, email me at [email protected] or contact at +919773687483.

Warm regards,
Tejas