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Should NRIs Buy Health Insurance in India? Here’s What You Need to Know on Pravasi Bharatiya Divas 2022

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Every year, millions of Indians try and head to foreign shores for better work opportunities. Yearning for a better standard of life or a fatter paycheque is not a new trend. However, after reaching a foreign country, Non-Resident Indians (NRIs)often get confused about whether they should buy health insurance in India or in the country they are currently staying in. Well, there is no simple answer to that because it may depend on various factors and differ from one person to another. Let’s delve deep into how you can ensure that your medical insurance needs are taken care of in both countries in 2022.

Taking a decision

Keep the following in mind to take good health insurance decisions.

1. Duration of stay:

As an NRI, whether you need health insurance in India depends on how long you are planning to stay abroad. If you plan to return to India within 3 to 4 years, then it makes sense to invest in a health cover in India as well as in the place of your residence. Most health policies have a waiting period of 2-4 years before some illnesses are covered. So, if you buy a health cover in advance, you can start availing its benefits once you land in India as you would have already served the waiting period. In case of any medical emergency, once you are back, you can immediately claim the expenses. If you already have an existing policy in India, you can continue paying its premiums until your return. However, if you plan to stay abroad for a longer duration, it is better to buy a policy in the place where you currently reside. There’s no point in taking a health cover in India as you would be paying the premium unnecessarily.

2. Family residence:

If your family is not moving out of the country along with you, it is advised to continue with the family floater insurance plan bought in India. This will be a financial backup in case of any medical crisis back at home.

3. Geographical coverage:

Most health insurance policieshave a clause called geographical coverage or limitations, which means the medical expenses incurred outside India will not be covered. If you are residing in Dubai and seek medical treatment there for any illness, the health insurance in Indiawill not cover your hospitalisation expenses. The health plan bought in India is meant to cover the expenses of treatment done only in India. However, there are some policies in India that provide international cover, but with certain limitations or exclusions.

4. Tax Benefits:

Under Section 80D of the Income Tax Act, you are eligible for tax rebate for the premium paid towards health insurance. If you are paying insurance premium for self, spouse and children, you can claim a deduction of up to INR 25,000 every year. If you buy a health plan for parents, you can claim an additional rebate of INR 25,000 if they are below 60 years of age. If your parents are senior citizens, you can avail a tax benefit of INR 50,000 per year. So, you, as an NRI, can get a tax benefit of up to INR 75,000 in a financial year for the premiums paid.

Factors to consider while buying a health cover

A health insurance policy is a must to safeguard you and your family from financial distress in the event of a medical emergency. But buying the right plan can be a challenging task. So, before you purchase health insurance in 2022, here are some points to consider:

• Pre & post hospitalisation coverage:

Make sure your insurance plan covers both pre and post hospitalisation expenses. Before hospitalisation, your expenses include doctor consultation, medicines, diagnostic tests, etc. Post hospitalisation, you need to spend on follow-up visits with the doctor, medical tests (if required), and medicines. Choose a plan that takes care of all these expenses.

• Lifetime renewal:

Consider a health policy with lifetime renewability especially if you are buying for senior citizens. The reason is there is no age bar and the insured will be covered for life.

• Waiting period:

Pre-existing illnesses and certain other ailments are covered after a waiting period of 2-4 years, depending on the insurer. During this period, you will not be reimbursed for any claim related to those ailments. So, before buying the health insurance, check the waiting period.

• Claim settlement process:

It is important to know the claim history of the insurance provider and its claim settlement process. Check how many claims the insurance company has settled in a year against the number of claims filed. An insurance provider with a high claim settlement ratio would mean your claims will be settled with ease.

• Network hospitals:

Ensure that the insurance company has a wide network of hospitals where you can avail cashless facility. In addition, you need to check if the hospitals are reputed and offer quality healthcare treatment.Find out how many hospitals are in your vicinity as well.

• Exclusions:

While buying a policy, it is easy to overlook the exclusions,which can land you in trouble at the time of filing claims. So, go through the scenarios that are not covered by your policy and ask the insurer if you have any doubts.

Conclusion

To wrap up, if you plan to stay out of the country for a short duration, then buying health insurance in India makes sense. However, in case of a long duration, it might be a waste because you cannot avail any of its benefits while residing abroad. Paying for the premiums will be an additional burden on your finances. So, buy a policy in the place of your residence and stay secured.

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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