Importance Of Personal Medical Insurance

Posted on: Jan 3, 2019 | 3 mins | Written by: HDFC ERGO Team

Importance Of Personal Medical Insurance

In current times of high medical inflation rates, failing to hold adequate amount of medical insurance cover can prove to be a major personal finance disaster. This could lead to either poor health care because of non-affordability or spiral an individual into financial distress due to high medical bills. There are two common mistakes when it comes to buying insurance: People don't act at the right time, and when they realize that they have made a mistake they try to over-compensate by buying too much insurance. Majority of employees are provided medical insurance cover by their organizations and are increasingly dependent on it. However, they often fail to assess their requirements and don't realize the benefits. Such medical insurance policies lapse once you leave the organization. A potential job change, job loss and retirement are situations when an individual faces a no insurance condition. A personal medical insurance cover is valid as long as the payments are made.

Importance of Personal Medical Insurance

1. Coverage

Most companies provide a basic health insurance cover. It might cover individuals from minor ailments and provide a workable coverage. But it might be insufficient in case of a major medical emergency. It is important that people are ready for uncertainmedicalemergencies and they have a financial safety through adequate health insurance cover.

2. Validity

The validity of a health insurance provided by the organization is valid until you are working with the organization. Not just a job change, even in situations like job loss and retirement, an individual will be left with no health insurance cover. Then they end up using all their savings. A personal medicalinsurance cover is valid as long as the payments are made.

3. Buy at an early age

Buying a personal medical insurance policy is cost-efficient at an young age, when mostly people are free from medical complications. Also, the premium is lower and there are more choices. At an older age, the cost of the cover increases and if one develops health issues, the health insurance company tends to exclude pre-existing conditions which negates the whole purpose of buying a health insurance. Most health insurance companies have an upper age limit for the policies, which means one would have limited options after retirement.

4. Tax benefit

Personal health insurance policy provides tax benefit. Payments made towards health insurance premiums are eligible for tax deductions under section 80D of the Indian Income Tax Act.

Conclusion

Keep the above points in minds when deciding to buy personal medical insurance. Having a separate health insurance is always beneficial in terms of financial safety. Since health emergencies can occur anytime, be careful about the medical insurance you purchase. Always do a thorough research and opt for the best health insurance policy in India that provides you comprehensive coverage.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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