Why health insurance is essential?

Importance of Health Insurance

According to recent studies, healthcare costs have been rising at more than 20 per cent on an annualized basis. Also, out-of-the-pocket spending continues to be around 75 per cent of the total medical expenses. Given this increasing cost of medical care and treatment, it becomes essential that you have adequate health insurance cover to reduce the risk of financial difficulties in the event of a major illness or hospitalization. Even the government is getting into the act  to reduce the exorbitant out-of-pocket spending, hence it has been promoting low-cost health care plans.
COVERAGE

A health insurance policy covers the following basic costs in case of hospitalization due to any accidents/ diseases which doesn't form a part of the permanent exclusions of the policy

1. Room, boarding expenses as provided by the hospital/ nursing home.
2. Nursing expenses
3. Surgeon, aneasthetist, medical practitioner, consultants, specialist fees
4. Operation theatre charges, surgical appliance, medical and drugs, chemotherapy, radiotherapy and similar expenses.

EXCLUSIONS

The exclusions on a health insurance plan vary marginally company to company. What one should pay special attention to is whether pre-existing diseases or treatment for common but expensive treatments, such as cataract or hernia are covered.
The typical expenses that are not covered by a general health insurance policy are:

• Any disease/injury during first 30 days of commencement of policy (except accidental injury)
• Permanent exclusions could comprise of the following illnesses:
• Vaccination, inoculation, change of life, cosmetic or aesthetic treatment, plastic surgery unless necessitated due to accident or as a part of any illness
• Dental treatment or surgery of any kind unless requiring hospitalization
• Cost of spectacles contact lenses and hearing aids
• Convalescence, general debility, "run-down" condition, sterility, venereal disease, intentional self-injury, use of drugs and intoxicants
• Hospital / nursing home charges not forming part of any treatment
• Nuclear perils and war group of perils
• Naturopathy or non-allopathic treatment
• Any internal congenital illness
• Pregnancy and childbirth related diseases
• Expenses arising from HIV or AIDS and related diseases
• Use or misuse of liquor, intoxicating substances or drugs as well as intentional self injury
• War, riots, strike, terrorism acts, nuclear weapon induced treatment.

DOES AGE EFFECTS HEALTH INSURANCE PLANS AND PREMIUMS
Your age definitely affects your insurance plan in terms of coverage as well as cost. The older you are, the costlier your health insurance premiums.
As you grow older, your body becomes increasingly prone to illnesses, disorders, and malaise - hence the increased insurance premium costs.

TAX BENEFITS ON HEALTH INSURANCE
Premiums paid up to Rs. 15,000 per annul under the health insurance plan for self, spouse, two dependent children are exempt from tax under section 80 D of the Income Tax Act. Moreover you can also claim deduction up to Rs. 15,000 for premium paid towards dependent parents and in case your parents are senior citizen, you can claim a deduction of Rs. 20,000.

Source: http://www.apnapaisa.com