Why Medical Insurance is Critical for Low & Middle-Income Families

Health insurance is an essential aspect of financial planning in India, especially for low and middle-income groups. The soaring medical inflation and the high cost of healthcare services make it imperative for individuals to have a medical insurance policy.

This article will discuss why medical insurance is essential for low and middle-income groups in India. 

Aid for Combating Soaring Medical Inflation: Medical inflation has been rising steadily in India, making it increasingly difficult for individuals to afford healthcare services. The cost of treatments, diagnostic tests, doctor's consultations, and other related expenses can quickly add up, putting a significant strain on an individual's finances. Medical insurance provides a safety net against this inflation and helps individuals afford the treatments they need without dipping into their savings. The insurance company covers a portion of the treatment cost, reducing the individual's financial burden.

Protecting Hard-Earned Savings: Hospitalization can be unexpected and stressful, especially for low and middle-income groups with limited savings. Unplanned hospitalization can lead to significant financial strain, as the cost of treatments can quickly add up. Medical insurance protects an individual's savings by covering a substantial portion of treatments, including hospitalization costs, diagnostic tests, and doctor's consultations. This helps individuals maintain their financial stability, even during hospitalization.

Access to Quality Healthcare Facilities: Quality healthcare is often out of reach for low and middle-income groups, as they cannot afford the cost of treatments at excellent healthcare facilities. With medical insurance, individuals can access better healthcare facilities, as the insurance covers the cost of medicines. This enables individuals to receive better medical care, as they can choose a healthcare facility that best suits their needs without worrying about the price.

Coverage for Hospitalization Costs: Hospitalization costs are a significant concern for low and middle-income groups, as they can quickly drain an individual's savings. Hospitalization costs include room rent, nursing charges, and other related expenses. Medical insurance covers the cost of hospitalization, providing individuals with peace of mind and financial stability during a stressful time.

Pre-Hospitalization and Post-Hospitalization Cover: Treatments don't just stop at hospitalization; there are also pre-hospitalization and post-hospitalization care costs. Medical insurance also covers the cost of treatments before and after hospitalization, which includes diagnostic tests, doctor's consultations, and other related expenses. This helps individuals receive complete medical care without worrying about the cost.

Facility for Cashless Treatment: Medical insurance provides cashless treatment, enabling individuals to receive treatments without worrying about the cost. Insurance companies have tie-ups with network hospitals, where individuals can avail of cashless treatments. With cashless treatment, individuals don't have to pay for treatments upfront and can instead submit their insurance policy to the hospital for reimbursement. This makes the entire process of receiving medical care much more convenient and less stressful.

Protection for the Entire Family in a Single Policy: Most medical insurance policies provide coverage for the entire family in a single procedure. This means that individuals can protect their whole family under one policy, which is more cost-effective and convenient. A single policy covers all family members, including the policyholder, spouse, children, and dependent parents above age 50. This provides a comprehensive safety net for families, as all members are covered under the same policy.

Option to Refine Coverage via Add-Ons: Medical insurance policies come with add-ons, which provide additional coverage for specific health concerns. Individuals can refine their range by choosing the add-ons that best suit their needs. For example, an individual can add a critical illness cover, which provides a lump sum payment in the event of a critical illness. This additional coverage helps individuals manage their finances better during a medical emergency.

Avail Health Insurance Tax Benefits: In India, medical insurance policies come with health insurance tax benefits, which can help individuals save on their taxes. The premium paid towards a medical insurance policy is eligible for tax deductions under section 80(D) of the Income Tax Act. This means that individuals can reduce their taxable income by the amount they pay toward their medical insurance premiums, which can lead to significant tax savings. The medical expenses deduction for 80D can be a great advantage for you when you file taxes.

Conclusion:

In conclusion, medical insurance is an essential aspect of financial planning for low and middle-income groups in India. With the soaring medical inflation and high cost of healthcare services, having a medical insurance policy provides a safety net against the financial burden of hospitalization and treatments. It also provides access to quality healthcare facilities, pre-hospitalization and post-hospitalization coverage, and the option to refine scope via add-ons. Additionally, medical insurance policies offer tax benefits, making them a cost-effective option for individuals looking to secure their financial future.