5 Reasons to Buy Health Insurance in 2021

More and more people are being exposed to health risks and are turning towards securing themselves and their loved ones with health insurance. Moreover, the COVID-19 pandemic and its massive impact on the country has highlighted the importance of health insurance. Even with the COVID-19 vaccine set to release in 2021, it is still wise to buy health insurance. Here’s why:

1. The rising cost of healthcare calls for health insurance

To make healthcare accessible to all, India’s Insurance Regulatory and Development Authority (IRDA) directed insurance companies to increase the extent of coverage they provide to policyholders. This led to an increase in premium rates by 5%. This, coupled with the steep rise in hospitalization costs every year, calls for buying health insurance at the earliest. According to the IRDA, insurance rates are set to rise more in 2021. Thus, buying a health insurance policy in 2020 or early in 2021 would get you the same coverage at affordable premium rates.

2. Increase in lifestyle diseases and health threats

More and more people are facing constant work pressure, erratic lifestyles and a polluted environment. This has increased the number of lifestyle diseases like hypertension, diabetes, obesity, etc. Mental health issues like depression, anxiety and insomnia, are also on a steep rise, especially among the younger age bracket. This has highlighted the need for an all-round health insurance.

3. Health insurance is now more customer-oriented

If you haven’t bought health insurance before, now is the right time to get it as the coverage provided by insurance companies is customized to suit diverse needs. Apart from individual and family floater plans, there are plans for women, senior-citizens, Indians abroad, rural families, and corporate groups. Apart from covering hospitalization costs, health insurance plans also offer modern benefits. From personal health coaches, lifestyle management, wellness/fitness rewards to health check-ups, second opinions and preventive tests, health insurance is in sync with changing customer needs.

4. Payment of health insurance premium reaps income tax benefits

Apart from providing financial protection, health insurance also offers many tax benefits under the Income Tax Act, 1961. Individuals can get a tax deduction for the insurance premiums they pay every year under Section 80D of the act. The amount of tax deduction one can claim can go up to Rs. 1,00,000 a year, depending on the type of policy, age of the policyholders and the guidelines issued by the IRDA.

5. The earlier you buy health insurance, the lesser you have to pay!

Buying health insurance at a younger age requires one to pay a lower premium rate. Premium is the monthly amount one pays for getting health insurance. Its rate increases with age as the risk of health concerns increase with age. So, the earlier you buy health insurance, the better.

Health insurance rates and policy types depend on your age, location, occupation, health needs and budget. However, age is the most crucial factor in deciding the type of health insurance policy you need.

Conclusion

Investing in health insurance in the present secures your future. And, given the changing circumstances, buying a health insurance policy is more of a necessity now than a luxury.

Kotak Health Shield plan offers comprehensive health insurance coverage, with critical illness cover, wide cashless hospital network and seamless claim settlement. You also get personal accident cover, with coverage for disability and accidental death.

Remember to read the policy document and plan brochure carefully to understand the extent of coverage, policy inclusions and, more importantly, the exclusions. Health insurance is a critical requirement in the post-COVID world. Ensure that you choose your plan wisely.