Knowledge Centre

Medical insurance is for everyone

Many people are of the view that if they own a life insurance policy, every contingency will be covered. While there is certainly an amount of substance in that belief, the fact remains that insuring a specific aspect of your life from uncertainties is the best way to protect yourself. Life insurance has a wide scope of coverage that lasts for a lifetime and medical insurance is its sub-set.

It is designed to help you in specific ways when you are in a peculiar situation. Typically, most average medical insurance policies available will provide cover for hospitalization which will include hospital room expense, laboratory test, doctor’s fee, cost of minor operations, mental health care, X-rays and emergency health care. In some of the medical insurance plans, post-hospitalization cost such as nursing home care, cost of post-surgery medical equipments, prescription drugs, dental care and eye-care are also provided for.

These are the primary benefits that will accrue if you have a medical insurance policy; the other benefit which is a peripheral benefit, is the tax-saving component. Under sec 80D of the income tax act, buyers of medical insurance are entitled to tax benefit in respect to the amount of health insurance premium paid. Thus, it has dual benefit, the additional incentive provided in the form of tax saving is to induce more and more people to insure themselves.

The welfare-orientation of the government is of the view that most people get insured with medical insurance regardless of their class, as this will reduce the burden on the government expenditure towards medical care for all citizens. The benefits afforded by medical insurance far surpass the cost that is required to maintain the policy and therefore it can be generalized for the majority of the population. Everyone must have a medical insurance for their own good.

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