Why Get Health Insurance| North Loop Official Blog
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29 Sep 2020

Why Get Health Insurance

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What is Health Insurance?

Health Insurance is an agreement you make with an insurance company to provide a financial backup at times of medical emergencies in return for an annual premium. Given how health risks come without any warning, it is always a good idea to get financially prepared for such uncertainties in life. This insurance is also one of the most integral parts of a sound financial plan.

Importance of Health Insurance –

The health insurance policy covers a variety of medical expenses such as doctor consultation fees, medical test costs, ambulance charges, hospitalization costs and even post-operative recovery costs. With medical care getting expensive day by day and the rising increase in various types of diseases, buying a health insurance policy has become the utmost priority of most families. There are also different types of health insurance plans you can opt for such as individual health insurance, family health insurance, critical illness insurance, etc. that vary based on their premium and other factors. Most of these allow you to get a reimbursement for the cost of expenses incurred for medical treatments.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

Let us now come to the reasons why you should get health insurance –

Rising medical costs – The healthcare costs have been soaring lately, and during medical emergencies, an immense burden of meeting all the hospital and treatment expenses gets created. That is why it gets recommended to buy health insurance beforehand when doing financial planning. It saves a lot of future mental and financial stress.

Income Tax Benefit – Spending your money in buying health insurance and making payments for its premiums makes you eligible for tax deductions under Section 80D of the Indian Income Tax Act, 1961. As per this section, if you are of 60 years or younger, you can claim a deduction of up to Rs.25000 for health insurance premiums paid for yourself, or your spouse and children. You can also claim additional Rs.50000 as a deduction for health insurance premiums if you take the insurance for your parents who are aged 60 years or above. This tax benefit or deduction is available towards payments for annual premium on a health insurance policy, or preventive health check-up (in case of a senior citizen) or medical expenses incurred (for senior citizens). So the total tax benefit that can get availed by you is Rs.75000 if you spend on health insurance premiums for your senior citizen parents.

Global situation and lifestyle changes– The current worldwide state of affairs with the pandemic creating havoc all over the world is enough evidence as to why buying health insurance is the need of the hour. Moreover, with the way lifestyles have changed for the worse such as hectic work schedules, bad eating habits, poor quality of food and rising pollution levels, a health insurance policy is the first step towards a sound long-term retirement plan.

Hospital Expenses – Health insurance does not only cover the medical costs during hospitalization but also takes care of most OPD (out-patient department) expenses. Another key benefit of the policy is the fact that it covers diagnostic test expenses as well, the numbers of which have risen tremendously in recent times. It is noteworthy that the health insurance policies cover all these expenses during the stipulated time that gets prescribed by the policy.

Additional Benefits – You can also get covered for other healthcare expenses such as ambulance expense, health check-ups, vaccinations, and day-care surgeries on buying health insurance.

Documents required for buying health insurance –

Passport-sized photo
Age proof
Identity proof
Address proof

How to buy health insurance online?

You can buy health insurance online by following the steps below –
Explore and compare the different health insurance plans available online.
Find the health insurance plan that is best suited to you.
Choose an online platform where you can buy the policy
Apply for the policy and pay premiums.

You can buy a health insurance policy online by signing up with North Loop. The process is 100% digital, and you can get a low-premium policy with an instant renewal process on its user-friendly app.

Click here to read about other the types of insurance policies offered. To sign up with North Loop, click here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.