Can You Save Money by Investing in a Health Insurance Plan?

19 December 2022
4 min read
Can You Save Money by Investing in a Health Insurance Plan?
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We all know health is wealth. Not paying attention to health keeps one at risk of falling ill. You can’t reap the beautiful rewards of your hard work if you’re lying in bed, sick all day. Moreover, hospital bills are expensive. Depending on the illness, medication and treatment are costly. Most people can only afford to fall ill a few times a year.

While our bodies may be robust enough to withstand basic illnesses or a common cold, it’s hard to predict the life-changing impact of chronic disease. Most of us are very optimistic about our health, making us ill-prepared for serious health issues. Health insurance plans are an essential part of your overall health. It helps you cover the financial costs of your medical bills and other expenses that may arise from an illness or injury.

In addition, health insurance plans can also help you manage your financial future by providing a way to save for retirement. This means that if you have a severe illness or accident, you can pay for treatment without worrying about how much it will cost.

With all these benefits, everyone needs to take care of their health to live long, healthy lives. If you want to ensure that you always have access to quality health care and are covered in case something happens, then investing in health insurance plans could be just what you need.

How Can You Save Money Through Health Insurance Plans?

You know you need health insurance, but we bet you didn't realize how much it could help you save. Here are some tips that can help you get the best plan:

1) Employer’s Offered Insurance Plan

This is the cheapest option if you work for a company that offers health insurance. But, if your company provides an employer-sponsored insurance plan through a third-party administrator (TPA), you should ensure that the TPA offers low-cost options. This is where prices can vary significantly depending on how many people are covered by the plan and whether or not they have other coverage through their jobs or other sources.

2) Start As Soon As Possible

If you haven't already started your health insurance plan at work, do so now. You can save money by enrolling in a program that's right for you, even if it may be more expensive than others available in the market. 

3) Take Advantage Of The Cumulative Bonus Offered

One of the ways to save money on health insurance premiums is by joining a group plan. It's a great way to receive coverage at a lower cost, and you can increase your benefits by taking advantage of the cumulative bonus offered by your employer.

4) Take Separate Insurance Cover For Your Parents

It's essential to ensure that your parents have their health insurance policy. This will ensure they don't have to pay for medical expenses out of pocket. If something were to happen, it would be easier for them to access the funds needed for treatment.

5) Compare Plans To Find Low-Cost Options

When looking for a health plan, don't just look at what type of coverage it offers—look at what the cost will be per month. You might be surprised by how many different plans are available with similar features but very different prices.

6) Indulge Yourself in Healthy Habits

Healthy habits such as eating healthy meals, exercising regularly, and getting enough sleep are all steps towards lowering your risk of getting sick in the first place. In addition, these things will help keep you from spending money on expensive doctor visits or prescription drugs later down the road.

How Can You Save On Taxes By Investing In A Health Insurance Plan?

Under Section 80D of the Income Tax Act of 1961, the government gives citizens the provision of a tax exemption if they have applied for health insurance. This is one of the most significant advantages of investing in health insurance. As for the numbers, if you have paid a premium on yourself, your spouse, and a child in one financial year, you can claim up to ₹25,000 in tax breaks.

In addition, if you have paid an extra premium for your parents, you can claim an extra ₹25,000 to ₹30,000 in tax breaks, depending on your parents' age.

Along with the tax break, you can get by paying the life insurance premium, you can also avail of tax exemptions under Section 80DD and Section 80DDB for any expenses incurred by you for their medical treatment, which includes nursing, training, as well as rehabilitation of dependents who are disabled.

However, getting a medical certificate from a government hospital is mandatory to claim the deduction.

Conclusion

It's important to remember that not all health insurance plans are created equal. For example, some companies offer more generous benefits than others—and in some cases, these benefits may be worth paying for even if their premiums are higher than those offered by competitors who don't provide as many perks or services as well as other things like dental coverage or vision plans at no additional cost). 

Most insurance programs start coverage for pre-existing ailments from around the 48-month mark. Specific insurance programs cover the same, from 36 months onwards as well. But irrespective of the plan, disclosing any pre-existing ailments is essential for a smooth claim settlement process when you sign up for the plan.

With good insurance policies in the market like Apollo Munich Easy Health, ICICI Lombard Complete Health Insurance, Religare Health Insurance Care, Bajaj Allianz Health Guard, and Max Bupa Health Insurance Health Companion Plan, there are plenty out there to secure both your health and your wealth. 

So be wise, be healthy. 

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