The pandemic hasn’t invaded us single-handedly! It has come with a big bunch of health-related anxiety, worries related to uncertainties, and a whole lot of medical expenses. In such a time, the top-notch priority of any individual is his and his loved one’s health. If the thought of your family’s health always hovers around your mind, then don’t worry! Health insurance is here for your rescue! However, before buying health insurance in covid time, it is vital to consider some dos and don’ts and if you wish to know them, then explore the article till the end to reach a successful decision.

Importance of Health Insurance in Covid times

In the pandemic, the domain of health and awareness has reached great heights. Concern about one’s health and the health of one’s loved ones have become a significant matter with the spiking up covid cases and new variants of the corona. Several points add to the vitality of insurance at covid times. Some of them are listed below:

1. Helps manage the increasing risk to lifestyle

   The spiking pollution, increase in contagious diseases, unhealthy food and lifestyle habits that eventually decrease the immunity power of an individual is a significant concern in this day and age. In such conditions, an individual is highly vulnerable to health problems. Thus, health insurance becomes a must-have aspect of your life.

2. Helps you protect your family

   Understandably, a single earning member has an unimaginable financial burden on him. In such cases, health insurance comes in quite handy to take care of your family members’ health and medical-related needs.

3. Helps you get quality treatment 

   The pandemic has made it all the more evident that the treatment-related expenses can quickly eat up your savings. In such a scenario, the right health insurance policy can help you ensure that you would be able to afford quality treatment for yourself and your loved ones in a medical emergency.

Do’s And Don’ts To Remember While Buying Health Insurance In Covid Times

Since you have already explored why health insurance is so vital for us and why do we need them, it is time to know the dos and don’ts that you must follow before choosing health insurance. There are specific points that everyone should consider to reach the right place at the correct cost while searching for health insurance. 

Do’s

1. Opt for a high coverage comprehensive health insurance policy

   When it comes to protecting your health more is less, therefore make sure you get adequate coverage. There are many add-ons that can further enhance the coverage of your policy.

   Remember to optimise your coverage as per your need. If you need higher coverage, you can opt for a super top-up plan to enhance the overall coverage.

2. Look out for network hospital facility
   Look out for those health insurance policies that provide you with a wide network of hospitals near your residence. At the time of medical urgency such as covid, cashless claims can be a great relief.
3. Look out for daycare procedures
   There are certain medical treatments such as dialysis, cataract surgery etc. that take no more than a day. This is especially handy in covid times wherein you might not get hospital beds or would not want to get hospitalised unless it is completely necessary.

   Therefore, it is indispensable for you to check whether you can avail of these services in your insurance plan or not.

4. Look out for discounts
   Many health insurance plans offer special deals and discounts when the policy is purchased online. Female policyholders can also get discounts on premiums. You can also look out for family discounts when more members are insured. 

Don’ts

1. Don’t delay the Renewal
   Make sure to prevent any gap in your policy renewal without any hindrance. Don’t afford a break of even a single day, rather get the policy renewed before it expires. This way you not only ensure break-free coverage but can also avail of benefits and claim free bonuses.
2. Don’t go for a policy only because it’s cheap
   Make sure that the coverage that is offered is comprehensive enough to cover your medical expenses. Saving a few thousand today can cost a few lakhs tomorrow.
3. Don’t ignore the policy document
   Read the policy documents carefully and never skip the fine print. Understand the inclusions and exclusions of your policy. This will help you manage your expectations as well as your claims.
4. Don’t hide any vital information about your health
   Don’t hide any vital information about your health status as it can give rise to disputes during claim settlement. Report all the severe health concerns like high blood pressure and diabetes etc if any. You should also disclose the status of all the pre-existing health conditions adequately.

Conclusion

Due to the pandemic, health insurance has settled itself as a permanent member of life essentials. During this pandemic, many health-related uncertainties can take place. Therefore, it is essential to buy health insurance and secure yourself and your loved ones. Make sure you follow the dos and avoid the don’ts while making such an important decision.

On 1st February 2022, India’s Finance Minister, Srimati Nirmala Sitharaman, unveiled the Union Budget 2022-23. The second digital budget of its kind, the Finance Bill 2022, focus on four major themes:

• PM Gatishakti
• Inclusive Development, Productivity Investment & Enhancement, Sunrise Opportunities
• Energy Transmission and Climate Action
• Financing of Fintech Investment

People have mixed opinion about the budget, but this has been presented more from a futuristic point of view for the next 25 years.

One key aspect is that there is no change in the direct tax slabs, exemptions and deductions available.

Broadly, the Budget can be analysed into 6 key areas, namely: 

1. Payment of Life Insurance Benefit for the disabled:

   If the beneficiary of a life insurance policy is partially or fully disabled, the insurer will need to pay the beneficiary the life insurance amount once the parent or the guardian completes the age of 60.

   This exception is only applicable to specially-abled beneficiaries of both new as well as existing life insurance policies.

   Prior to this, insurance companies used to pay the beneficiary only upon the death of the parent or the guardian, which in the case of a disabled beneficiary adds to their challenge.

   Takeaway: Among the many highlights of the budget, this gained the maximum praise from industry observers. 

2. Long term capital gain (LTCG)

   The surcharge on LTCG has been capped at 15% in this Union Budget FY2022 and is applicable across all asset classes. This is previously applicable only to listed equity stocks as well as equity mutual funds. Essentially this change makes unlisted stocks at par with listed stocks.

3. Digital Rupee and Crypto-tax

   The finance minister announced plans of the RBI launching the Digital Rupee in 2022-23, which will be developed on the architectures of blockchain technology. Along with this, any profit derived from the sale or transfer of digital and virtual assets such as cryptocurrency, NFT (Non-Fungible Token) etc., will be taxed at 30%, with an additional 1% TDS being deducted at the source of the transaction. Lastly, the loss of any digital or virtual asset cannot be offset against any other income. 

4. Inclusion of Post Offices

   In an effort to accelerate financial inclusion across the country, in the upcoming months, all 1.5 lakh post offices across the country will be brought under the core banking network.

   Aimed at improving and extending the coverage of the national banking network to last-mile customers, this transition will essentially bridge the gap between post office account holders and account holders at other financial institutions.

   Along with this, to earmark the celebration of Azadi Ka Amrit Mahotsav, 75 digital banking units will be set up across 75 districts by Scheduled Commercial Banks. Combined with the inclusion of post offices in the core banking network, experts predict that it will radically expand the horizon of India’s organized banking network. 

5. Capital Expenditure and Electric Vehicles

   Another highlight of the Union Budget 2022-23 was the finance minister’s push to increase the government’s capital expenditure by 35.4% from the previous year’s ₹5.54 lakh crore to this year’s ₹7.50 lakh crore.

   The ministry predicts that the effective capital expenditure for this financial year will stand at ₹10.7 lakh crores. The finance minister also invited investments from the private sector such that India can not only leap into its pre-pandemic growth trajectory but also pave the way for the next 25 years, leading to India at 100.

   On a separate note, the finance minister highlighted the government’s willingness to accelerate the growth of the homegrown electronic vehicle industry.

   The government has proposed manufacturers across the country to join hands and implement a standardized battery swapping policy such that more charging stations for EV (Electric Vehicles) can be developed.

   Along with this, the minister has also encouraged the private sector to innovate its business model such that battery as a service and energy as a service can be implemented in the future to significantly increase the efficiency of the entire EV ecosystem. 

6. NPS (National Pension Scheme) & MAT (Minimum alternate tax)

   To extend equal social security benefits to employees of both state as well as central government employees, the finance minister has proposed that moving ahead, the compulsory contribution of both central, as well as state government employees towards their NPS (National Pension Scheme) accounts will be 14%. This amount will be directly debited from their earned wages to arrive at their net pay.

   Along with this, to offer a level playing field to both co-operatives and companies, the applicable MAT (minimum alternate tax) has been reduced to 15%.

   Additionally, the applicable surcharge will be reduced from the existing 12% to 7%, and this benefit will be applicable to all co-operatives having an income in the range of ₹1 crore to ₹10 crores. The ministry shared that this move will be particularly beneficial to the rural population, where most farmers are members of the aforementioned co-operatives. 

7. Income Tax

   Lastly, the finance minister has not proposed a new tax slab for taxpayers; however, an additional provision has been added to the tax filing system.

   Moving ahead, taxpayers can file an updated return to voluntarily pay any missed amount in the earlier assessment year. This updated return can be submitted within 2 years of the assessment year in question.

   Along with this, in an effort to reduce multiple litigations, moving ahead, taxpayers will only be able to file one case with the income tax department regarding any discrepancy. Once the said case has been resolved, only then can a second one be filed. 

In Conclusion

There has been a lot of impetus provided to startups with extension of tax exemptions till March 2023. Although there are little alterations in this budget, it has futuristic approach and hence would prove to be growth oriented for the economy as a whole.

The Reference Shelf

• MAT to be reduced for co-operative societies to 15%: FM Sitharaman [Link]
• Budget 2022 Explained Highlights: Rs 5.25 lakh crore allocated for defence budget [Link]
• Budget 2022 LIVE updates: ‘Pegasus spin budget’, says opposition; PM hails it as ‘people-friendly [Link]