Insurance
Between Life And Health
Health insurance gets short shrift over life insurance , but it is equally important for your financial portfolio , says Nirmala Konjengbam
health will not hurt , rather it will be rewarding in terms of good health and happiness .
When it comes to choosing between a life and a health insurance plan , most people prefer the former . A life insurance plan provides cover in case of death of the insured , passing on the benefits to a nominee . Health insurance , on the other hand , covers hospital and medical treatment bills . But one can say that life and health insurances are two faces of the same coin as both are equally important for a financial portfolio .
The popularity of life insurance has partly to do with the influence financial agents wield . But , without a health policy , many people end up spending their hard-earned savings on paying medical bills . Some even end up selling assets like land , gold and vehicles to meet the expenses . Yet , others take personal loans to tide over health crises . And paying off interest on a loan means a person ends up spending more than the actual medical costs . Therefore , an extra cover for
Health benefits
A health policy means that you can transfer your risks by paying a premium . But , in case of a preexisting illness , or taking a policy at an advanced age , one ends up paying a higher premium .
Healthcare expenses are rising in India , more so in cities where medical treatment costs are high . Anand Roy , Executive Director and Chief Marketing Officer , Star Health and Allied Insurance says , “ Premiums in small towns are relatively reasonable since they do not generally attract high cost of hospitalisation . But there are no apparent disadvantages of buying health insurance in small towns or cities .”
While one can prevent many ailments by leading a healthy life , several lifestyle-related diseases such as atherosclerosis , heart ailments and stroke , obesity and Type 2 diabetes are covered by insurance . The number of health problems has also risen because of poor air quality . Health insurance covers for these treatments .
Tax benefits
You can enjoy income tax benefits under Section 80 ( D ) of the Income Tax Act , if you have a health policy . If a person is 30 years old and his father ’ s age is 65 , tax deduction of `75,000 can be claimed . If a person is below 60 years and is paying premium for self , spouse and children , tax deduction can be
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Outlook Money July 2018 www . outlookmoney . com