The First Wealth is Health

"The first wealth is health" - Ralph Waldo Emerson

The most irrefutable reason for getting health insurance is to protect the health of you and your family.  Health insurance helps you save money on unexpected medical expenses without compromising on the quality of healthcare. Hence, having adequate health insurance should be one of the top priority for every individual.

But, the fact is that many Indians do not have a health insurance policy. It is estimated that less than 20% of the population in India is covered under health insurance.  Many feel that they are too healthy to require any kind of medical care ever and see it as a waste of money because it does not offer any return.  These people, in reality, are gambling with their health and their finances.

It is estimated that the health care inflation in India is at 20%, which is resulting in the rise of medical cost year after year.  If one encounters a major health problem like cancer or a heart disease, they could end up getting bills for lakhs of rupees. The goal of health insurance is to protect an individual or family from the financial burden, in case of medical emergencies and provide us with the ability to afford better healthcare facilities for ourselves and our family. Health insurance will grant you peace of mind. 

Most common question I am asked is that I already have health insurance from my company. Why do I need an individual health insurance plan separately? My advice would be not to depend only on health insurance from your employer. It is important to note that employee health insurance coverage is terminated once the person is no longer employed by the contributing employer. If you lose your job later in your life, it will be difficult to get insurance for people above 45 years or people who have an ailment or health condition like diabetes, thyroid, hypertension etc. It can also save a lot of money, incase of any hospitalization expenses that occur when you are in between jobs. So everyone should have an individual health insurance plan or a family health insurance plan that do not involve an employer. 

A health insurance policy cover should be between Rs.5 Lakhs  - Rs. 10 Lakhs, which should be sufficient for most people living in India. However, each individual/ family is different, so the health insurance coverage needs to be different. It also will depend on premium affordability, history of illness in the family that can be inherited etc. My recommendation is that you should get in touch with your financial planner who understands your lifestyle and your needs.

The premium paid for health insurance policies are deductible under section 80D of the Income Tax act up to a maximum limit of Rs. 25,000/- for self and family.  The limit goes up to Rs. 50,000/- (Rs.25000+ Rs.25000)  for self and family + parents. The limit goes up to Rs. 55,000 ( Rs. 25000 + Rs. 30,000)  for self and family + senior citizen parents. 

You can browse insurance companies website and buy health insurance plan online or you can consult your financial planner to help you with the same. Some of the companies providing health insurance in India are Apollo Munich Health Insurance Company Ltd., Max Bupa Health Insurance Company Ltd., ICICI Lombard General Insurance Company Ltd., Bajaj Allianz Health Insurance etc. 

Health insurance is a necessity, and not a waste of money.  Medical emergencies can bankrupt you if you don't have adequate health insurance.  Do not wait, get your and your family's health insured today.