Facts about health insurance

The number of individuals suffering from ailments is increasing every day. Though you are fit and active, you cannot diagnose health issues before their arrival. As you grow older, your body starts degrading, and your bones become weak. Your immunity decreases, and you become prone to chronic ailments.

The costs of medical care are on the rise. Of course, prevention is better than cure. But health ailments come without warning, which requires us to remain prepared with health insurance. It covers the medical and surgical expenses of the insured while reimbursing you up to a particular limit.

The types

Several health insurance plans are available in India, including hospitalisation policy, critical illness policy, and family floater plan. Under hospitalisation policy, the insurance providers cover only the hospitalisation costs. You bear the rest of the expenses from your pocket.

The critical illness policy covers a set of predetermined critical illnesses specified in the documents. Upon diagnosis, you receive a lump sum amount from the company for their treatment. The family floater plan covers you and your family in one policy. You receive a fixed insured amount for all the members covered under this medical insurance policy.

The importance

Due to daily stress and hectic lifestyles, health has become an asset that people want to protect. But at the same time, healthcare is one of the sectors undergoing steady inflation. So, instead of paying hefty bills for treatment and hospitalisation, you pay a small premium to the health insurance policy provider to obtain the insured amount.


For adults, the eligibility to buy health insurance in India is between the age of 18 and 65 years. However, children enjoy the benefits from when they are 90 days old till they turn 18 years old. Note that the premium amount increases significantly as the policyholder grows older. Thus, purchase the policy at the earliest for maximum coverage.

Tax benefits

When you buy health insurance plans in India, you receive tax benefits under Section 80 of the Income Tax Act. While paying a premium for yourself and the family, you are eligible for a tax deduction of Rs. 25,000. If your parents are below 60 years, the premium paid gets deducted up to Rs. 25,000. If the parents are senior citizens, you get a deduction of Rs. 50,000.

Insurance plans for Hindu Undivided Families (HUF) provide a tax deduction of Rs. 25,000, where one of the members of the HUF pays the premium. If you incur expenses toward a preventive health checkup, you are eligible for a tax deduction of Rs. 5,000, which is part of the overall limit of Rs. 25,000.

How to buy it?

This insurance plan is necessary for all individuals and families. Since the medical costs are unaffordable, you need to own one to protect your savings and fulfil other priorities. Visit any branch of a general insurance provider in your locality and enquire about the inclusions, benefits, and costs.

Technology enables you to conduct all activities conveniently from any corner of the world. For example, with the introduction of online health insurance, comparing and checking policies has become simple. First, visit the insurance company website and refer to the policy documents for information. Then, choose an affordable option that covers most of your requirements.


Health is wealth. It is our responsibility to keep our bodies healthy and curb the burden on our wallet with insurance.