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Health Insurance - the importance of this tool in your financial plan has changed drastically in the last year. While most employed people in India depended on their employers’ health insurance plans for cover, more and more people have finally understood the limitations that it comes with. In the last year, especially, the health insurance industry saw immense traction.

According to one report, in October 2020, health insurance witnessed an increase in premiums at Rs. 4,074.8 crore compared with Rs. 3,840.6 crore, recording 6% growth on a y-o-y basis. A quick analysis of online trends shows that when states began opening up in June-July, the searches for keywords like ‘Health Insurance’, ‘Google Health Insurance’ saw a considerable spike. And the best way to help people keen to find the perfect health insurance plan is to guide them through it, step by step. That’s exactly what we are trying to do -

Define Your Goal

Health insurance, like any other insurance or investment tool, is dependent on your goal. However, when it comes to health plans, it is a little different. Are you looking for an individual cover or do you want a cover for your entire family? Is this your sole health insurance, or is it an additional plan? Do your age, habits, and lifestyle put you at a higher risk of a critical illness or Do you need critical care add on? These are just some questions that will help you pick a plan that best suits your current needs.

Covid Care Above All

In the current scenario, the most important thing that you need to check in your health insurance is whether it can take care of medical expenses in case you or your family is affected by the ongoing pandemic. While there are various key components that make a health plan reliable and trust-worthy, coverage for COVID treatment has become essential. And insurers like Tata AIG offer COVID-19 assistance, which ensures that you are completely safe and secure in this pandemic.

The comprehensive health insurance plans offered by Tata AIG offers complete protection for people fighting the coronavirus. In the case of in-patient hospitalisation, Tata AIG covers everything from bed expenses, ICU charges, medicines, diagnostic tests etc. According to their website, new policy holders have a waiting period of 30 days for all health insurance claims, including COVID-19. In other words, if you sign up for the Tata AIG Health Insurance Plan and are unfortunately affected by any illness anytime after the 30-day waiting period, your claims will be covered by the plan.

Look for the Health Insurance Must Haves

There was once a time when our health plans would reimburse our medical bills, also known as mediclaim. But in the current day and age, having insurance plans that offer cashless hospitalisation is an easy and added benefit. Trusted insurance companies like Tata AIG offer cashless hospitalisation in over 7200 hospitals across the country. And in case your hospital is not on the list, you can easily benefit from the reimbursement option.

In addition to this, your health insurance plan must have no restriction on room rent. This will help you have access to the best possible treatment, at all times. It should cover the costs of all the medical aid that is required in your treatment. This is important in the current times, as there are various medical aids and equipment that the patient or their family is required to buy externally and share with the hospital staff. 

Always check the claim settlement ratio

The biggest contributor to choosing a health insurance policy is to pick a brand that you can completely trust. Their claim settlement ratio gives you a clear picture on the trust aspect of any insurer. Take Tata AIG for example. In addition to the stronghold of Tata, which is undoubtedly one of the most trusted companies in India, the Tata AIG health insurance also boasts of a claim settlement ratio of 96.43% in FY 2019-20. These high numbers prove that anyone who is relying on Tata AIG Health Insurance can be rest assured that their medical costs are covered.

Let’s Talk Benefits

While these are the factors that you need to check while investing in a health plan, there are various benefits of making this investment, especially in the beginning of the financial year. For starters, we all know that health insurance offers a much-needed financial cushioning and tackles all our stress regarding any uncertainty or sudden hospitalisation. In addition to this, health plans also offer tax benefits under section 80D of the Income Tax Act, 1961.

If you are a salaried individual under 60 years of age and avail a health plan for yourself and a separate plan for your parents (Also below 60 years), then you can avail tax deduction of up to Rs 50000 (Rs 25,000 for individual and Rs 25,000 for parents), under this section. In case your parents are above 60 years of age, their health insurance premium eligible for deduction goes up to Rs 50,000. In addition to this you can also claim tax exemption of Rs 5,000 per year for preventative health check ups for your parents below 60 years of age, and up to Rs 7,000 for those above 60 years.