How health insurance removes its two stresses: the cost of medical care and taxes
Aamir Khan recently said "Vote kar ya crib kar", in relation to the recent municipal elections of Mumbai and provoked controversy. For me, he is the best Khan of all time, unless the great Yusuf Khan, also known as Dilip Kumar, supports this claim. I opened with a lecture (I mean, blog) with this statement because I want to say: "Mumbai-kar, safe kar or kar cradle". No, seriously, looking at inflation in the health sector, we can take an adequate insurance or a crib.
Mumbai is home to the best private hospitals in India. Think of Breach Candy or Lilavati, they can compete with AIIMS and even beat it sometimes. However, you should be aware of the costs there. Let's forget those; Even a decent hospital would cost Rs 4 lakhs for general surgery. Do you have that amount of money, easily available?
The inflation of medical care in India is set at about 20% (this article puts it at 15% very conservative if you need proof, and for a more frightening reality, try this article, even if the data is a little old). This means that, if the surgery is costing you Rs 4 lakhs this year, next year, it will cost you approximately Rs 4.80 lakhs. And next year, it will cost you Rs 5.76 lakhs. In 4 years, it will cost you, about Rs 8.3 lakhs. You do not believe me OK, do your calculation. You will reach the same figures. So, basically, the cost of healthcare is increasing every year. Except for some dubious investment companies, nothing will give you that kind of performance. Let's think of an ideal scenario where your investment of mutual funds is giving you 12% per year. Your Rs 4 lakh today will become Rs 6.3 lakhs in 4 years. Which means you need to shell out Rs 2 extra lakhs out of your pocket if the illness comes four years after you have prepared for it.
In addition, the cost of a normal delivery in a large hospital has increased to Rs 40,000 from Rs 25,000 in Mumbai. You are free of cradle as I said in the opening.
I will not introduce my political bias ("someone without a political ideology is not appropriate to be part of society" -author), but all I would say is that the government did little to control this. Recently, even control of the price of some expensive treatments, including cancer, was eliminated.
Also, it does not make sense to say that today we survive more with drugs than with food. Everyone has some health complications and nobody is completely healthy. Blame our diet, lifestyle, urbanization and pollution, dependence on chemicals for anything or just the Kalyug Effect, I'm not sure what the reason is. But I am sure; health eats a good part of what we earn. From Ambanis to you and me, we all pay our doctors, generously. Even the proverbial apple (even the one that Steve Jobs made one that is more common nowadays) is not effective in keeping the doctor away.
Let's stop by the bush, love or hate. We need health insurance if we live in Mumbai or any other major city in India. The disease is not well educated Rishtedar who will come to visit him after informing him on the phone and trusting me, he is not ready when he knocks on his door and says "surprise!" health insurance It will keep you safe because you will get coverage against these unwanted, unwanted and exorbitant medical bills.
On the other hand, health safe it's a periodic investment that does not cost much at the same time (okay, I confess, they also exist, but why take that mode?) and can treat it as a SIP. Someone told me: "the bills make me feel sicker than the disease could have done", how true!
Once again, there is a trap. Suppose you opt for a Rs 10 lakh medical claim policy What seems enough in the current times. However, when using the above calculations, your coverage will be insufficient in the next five years. So what? Instead of buying another policy, opt for super refills that will increase the insurance coverage of the current policy at affordable prices. These policies offer coverage once the threshold or deductible limit of the main policy is crossed.
Generic health insurance plans are not enough either, especially if you are facing a critical illness. For example, the cost of cancer treatment increased by 33% at Tata Memorial Hospital in 2015.
You can buy an extra layer of protection by opting for critical illness coverage that gives you additional protection (reading, more money) against critical illnesses such as cancer or heart disease. I suggest you add these covers. If you can not do that today, you can do it when you can but try not to ignore it. This will keep you safe.
There is another additional benefit of buying a health insurance policy. The health insurance premium is eligible for tax benefits under Section 80D of the Income Tax Law. In addition, the benefit is available on policies purchased for yourself, spouse and parents. A quick look at the amount of the tax deduction:
|Scenarios||Me, spouse and children||Parents (whether dependent or not)||Total tax deduction|
|All are below 60||Rs 25,000||Rs 25,000||Rs 50,000|
|Except the parents, all are below 60.||Rs 25,000||Rs 30,000||Rs 55,000|
|All members of the family are above 60||Rs 30,000||Rs 30,000||Rs 60,000|
Keep in mind that previous tax deductions are available even in supercharge policies.
However, the main purpose of health insurance is to provide health coverage and not save taxes. Do not buy health insurance just to save taxes, buy it because you need it.
I reiterate, Mumbaikar, safe kar and cradle kar. The smart ones would go for the insurance for the whole family (which is another way of saying that I am smart as I have done) and the rest … God bless us all!
Health insurance benefits: save health expenses and taxes,