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Sunday, October 1, 2023

7 Reasons Why The Health Insurance Sector is Helpful in 2020

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A report stated that India’s health insurance market is likely to witness a healthy Compound Annual Growth Rate (CAGR) of 29% during 2021-2025. The growth figures closely train the growing awareness among the middle-class population about advanced medical care as well as healthcare funding. The government has also taken several initiatives to reduce the healthcare finance burden on citizens.

Nevertheless, as funding remains limited, individuals need to spend a substantial amount to receive the best treatment from out of pocket, which strains their economic well-being. In this scenario, owning a health insurance plan can be a suitable solution. 

With regular updates on technology, enhanced client experience, healthcare finance facilities for professionals, etc. the health insurance sector can be considered beneficial in 2020. Here are some reasons worth knowing regarding this sector’s contribution to the total healthcare financing.

Seven reasons why the health insurance sector is beneficial

  1. The solution to expensive medical needs

Ready availability of this form of healthcare finance loan helps an individual to receive the best treatment available without much delay. It takes care of the financial expenditure, starting from diagnosis to the treatment and post-treatment care. 

Further, under healthcare financing, professionals today can also avail multiple loan options to provide suitable healthcare services with an investment in advanced medical technology.

  1. For efficient management of personal finances

Health insurance is again beneficial as it takes away worries regarding spending related to medical emergencies. Individuals often avoid investing in health coverage due to a lack of finance or believe they are being covered under respective employers. Nevertheless, an insurance plan in place can actually help them save on unnecessary expenses that they end up paying from their pockets.

Contrarily, medical professionals can also take a healthcare finance loan to better manage their funding needs. Further, in tie ups with health insurance providers, they can enable cashless treatments at their facilities for financially covered patients. They can thus take a loan for doctors to upgrade their services to include these payment modes.

  1. Planning for retirement 

During the period of retirement, an individual’s earnings remains limited as compared to expenditure, especially on healthcare. Nevertheless, when one is covered with suitable healthcare finance, one can spend funds on planned requirements easily. Moreover, this reduces the weight of medical expenses on the children as some health insurance policies come with lifelong renewal.

Moreover, a doctor can also secure his/her family’s health by making timely premium payment for such coverage. If such an individual holds an ideal credit score of 750 or above, he/she can also proceed to availing a loan for investment in practice and serve with improved healthcare facilities. 

  1. Income tax saving

A health insurance plan in place can also be beneficial as it reduces the weight of liabilities like income tax payment. As per the Income Tax Act 1961, a premium paid towards health insurance policy qualifies for a deduction under section 80D. It will further help an individual to make income tax savings. 

  1. Ease of access

With the advancement of technology, now accessing data related to medical, healthcare, and financial issues have become convenient. Several NBFCs and healthcare finance lenders have made completing the required transaction for insurance plan purchase paperless. Individuals can also easily make claims against insurance policies online from the comfort of their homes.

NBFCs like Bajaj Finserv also allow individuals to manage accounts online through a dedicated customer portal. 

They also extend pre-approved offers that make the process of availing loans quick and easy. These offers are available on numerous financial products, including home loans, business loans, personal loans, professional loans, etc. You can check your pre-approved offer by providing your name and phone number.

  1. Cashless financing

Health insurance policyholders can also go for cashless settlement of the medical expenses met instead of claiming reimbursements. It also helps insurers to work with medical practitioners to extend treatment without much hassle of payment. 

  1. Access to improved benefits

Investing in an insurance policy can be beneficial as it brings along innovative and tailor-made benefits as per individual requirements. Today, insurance covers are provided to cater to individual’s healthcare financing requirements for primary as well as additional treatments. One gets the option to choose from micro-insurance products, disease-specific products, life stage services, and more.

These top few reasons prove that keeping a health cover in place can be useful, typically powered by the improving health insurance sector in 2020. It is also essential to remember that age plays a vital role in determining the premium and coverage benefits under a plan one chooses. Therefore, investing in health insurance the earliest can be a smarter financing decision this year.

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