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  • Does Health Insurance Cover People With Disabilities?

    Published on December 17, 2020

    Every person is unique in their own way. While most of us are blessed with certain abilities, there are quite a few who lack them. This deficiency may either be at birth or even due to the passage of time. But being differently-abled does not make them insignificant. These individuals are an equally important part of our society. 

    If you are aware of someone with any form of disability, it is critical to buy health insurance at the earliest without wasting any time. It is needless to point out that the ever-increasing cost of healthcare facilities can prove to be heavy on the wallet. Having health insurance by your side can help to financially, as well as mentally secure the well-being of these individuals. A health insurance plan can be a helping hand in times of need. 

    Who are considered as disabled or differently-abled?

    Disability of an individual is one of the three types – mental disability, accidental disability, congenital disability. 

    Individuals with mental disability: Mental disability is where a person’s action, speech, thoughtfulness or even behaviour differ than those who aren’t differently-abled. Some examples of mental disorders include people suffering from autism, schizophrenia, Asperger’s syndrome, mood disorders, anxiety, etc. these individuals are considered under the high-risk category. 

    Individuals with accidental disability: If an individual becomes incapable of their normal movements or becomes paralysed due to an accident, it is termed as an accidental disability. Persons with broken limbs or damaged organs are also considered under this category. 

    Individuals with congenital disability: When a person is facing disabilities since birth, it is considered a congenital disability. Symptoms like cleft palate or lip, down syndrome, spina bifida, cerebral palsy, and others are classified as a congenital disability. 

    What to consider when buying a health insurance policy for the differently-abled?

    Documentation: When purchasing a health insurance policy, be it a government-sponsored scheme or from private insurance companies, a medical report needs to be attached with the application form. A report from a government recognised hospital and consultation from a registered medical professional is required. Based on these documents, the insurer will either approve or reject your application. 

    Tax benefits: Another benefit to be aware of when buying an insurance cover for the differently-abled are the tax deductions for the premiums. Section 80U of the Income Tax Act,1961 allows a deduction of ₹75,000 for partially disabled individuals. Where the person is severely disabled, this amount is further enhanced to ₹1,25,000.

    Premium amount: When purchasing an insurance policy, the premium is one thing to be considered. It should be compared to the benefits that the policy offers at a specified range of premium. Using a health insurance premium calculator can help balance the premiums charged as well as the benefits under the policy. 

    What is considered when determining eligibility for such a plan?

    The insurance company considers three factors when determining eligibility under this policy – the current health status of the patient, family earnings and the capacity to pay premiums. The eligibility determines whether your application is accepted or rejected by the insurer.

    Now that you understand what is health insurance and the benefits for differently-abled individuals, it is of prime importance to ensure the safety of their health. Having a financial backup will be beneficial in the long run by providing mental peace knowing someone has you back.