Medical Insurance: Why is it Important for Low and Middle-Income Groups?
Medical Insurance: Why is it Important for Low and Middle-Income Groups?
Health concerns are rising by the day, and so are healthcare expenses. This has made it increasingly important for people of all ages and income groups to stay covered under adequate health insurance for those uncertain times. Although insurance premiums may seem like an extra financial burden, especially to those who fall under the low and middle-income groups, it is sure to prove beneficial during medical emergencies.
Talking about health insurance for low-income and middle-income groups, the percentage of people covered under health insurance is a cause of concern. According to a report released by NITI Aayog in 2021 (Health Insurance for India’s Missing Middle), about 30 percent of the population, or about 40 crore Indians, do not have health insurance coverage.If they face a medical emergency, the absence of health insurance plans will drain their savings and make things worse.
If you are someone with limited financial resources, understanding the benefits of health insurance will help you make an informed decision. Let’s take a look.
Benefits of Medical Insurance for Low- and Middle-Income Groups
1. Helps deal with medical inflation:
This is one of the main reasons health insurance is an important and intelligent investment for those with limited resources. Adequate health insurance for low-incomeand middle-income groups will help youmeet yourhospitalexpenditure and save you from major financial setbacks.
2. Assures quality healthcare:
This is one of the main benefits of health insurance for a middle-income family or low-income family. If you have limited income, a healthcare plan will help you avail of timely and quality treatment without fretting about the bills. You must pay a nominal premium in monthly, quarterly, half-yearly or monthly instalments, and your insurance provider will take care of the rest.
For example, health insurance for alow-income family can prove to be a boon if the insured meets with a major accident or is diagnosed with a life-threatening condition. The insured can opt for timely and quality treatment without burning a hole in his/her pocket.
3. Offers cashless hospitalisation facility:
When you have a good health insurance policy, you can easily opt for cashless hospitalisation, especially in a planned medical procedure. This will save you from the hassles of filing a reimbursement claim with the insurance company.
When you choose a network hospital for your medical procedure, the insurance provider will settle your hospital bills, and you may not have to pay anything out of your pocket. This is an important benefit of health insurance for a middle-income family and low-income families.
4. Promises comprehensive coverage:
This is one of the main benefits of medical insurance. A comprehensive health insurance policy will offer all-around coverageand make things easier for you during such trying times. Apart from covering your hospital bills, it will also take care of yourpre- and post-hospitalisation expenses.This includes doctor’s consultation fees, diagnostic tests, investigative procedures, cost of medicines, follow-up treatment expenses, and more.These expenses often add up to a considerable amount of money,and the absence of a healthcare plan can make things difficult for those with limited financial ability.
5. Family health insurance:
Another benefit of health insurance for low-income groups is that you can take a family floater policy and cover all your family members. This will ensure you and your loved ones have good medical coverageat affordable premiums. A single family health insurance plan for the entire family will also save you from the hassles of managing and maintaining different policies.
6. Option to enhance the overall coverage with add-ons:
When you purchaseindividual health insurancefor yourself and your loved ones, you can customise the plan as per your requirements with the right add-ons.
Add-ons will enhance your medical insurancecoverage and offer better protection to the entire family. Since add-ons will increase your policy premium, make sure you choose them wisely. Some important add-on covers arecritical illness cover, maternity cover, and personal accident coverage. This is yet another significant benefit of health insurance for amiddle-income family or low-income families.
7. Enjoy tax benefits:
Health insurance for poor people or low-income groups is also beneficial when it comes to saving taxes. Under Section 80D of the Income Tax Act, policyholders can enjoy tax benefits on health insurance premiums. This way, you will not feel the pinch of the premiums you pay towards your healthcare plan.
Conclusion
Health insurance for poor peopleor health insurance for low-incomeindividuals is more like an important investment that safeguards their savings during medical emergencies.Hence, even if you have inadequate financial resources, make sure you cover yourself and your loved ones under a good healthcare plan. Keeping medical inflation in mind, the premium you pay for the policy will be quite nominal when compared to the ever-increasing hospital and healthcare bills.
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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