— young people laud government for placing affordable insurance within the reach of more Guyanese

COGNISANT of the importance of putting provisions in place for unforeseen circumstances, the government in the 2022 National Budget has placed affordable medical and life insurance within the reach of more Guyanese by making premiums deductible from their chargeable incomes.

The government has implemented for taxpayers, “a deduction from their chargeable income for premiums paid for life and medical insurance up to a maximum of 10 per cent of their income or $30,000 monthly whichever is lower.”

Many young people, those with existing policies and those without, are looking forward to now being able to capitalise on this new initiative and get coverage for life’s unexpected events.
Priya Persaud, a mother of four, who currently has life and health insurance policies with Assuria, sees the new initiative as important protection for her family.

“With the high costs at the private hospitals, having financial coverage in the event of a serious illness or accident, health insurance is very important. With the life insurance I also see it as something important because my family gets an amount of money if I die, and that can help them with any expenses, especially my kids’ future education expenses,” she told the Guyana Chronicle.

Health insurance covers the cost of medical care, while life insurance involves a sum of money that is paid to beneficiaries following the death of the policy holder or after a set period. Health insurance is considered particularly pivotal, as it provides coverage for medical expenses including surgeries, medications, tests and doctors’ visits that are done at a private medical facility.

The government’s insurance deduction will now reduce the amount of taxable income and ultimately the tax payable by the taxpayer, while at the same time guaranteeing that long-term health care needs and the needs of relatives in the event of death are met.

This measure is projected to cost approximately $1.1 billion in the budget, Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, had explained during his budget speech.

Notwithstanding that Guyana has a public healthcare system, many persons prefer private services. Additionally, when a service is not available at a public facility, patients have to go to a private facility which will require them to pay. These expenses can at times run into hundreds of thousands of dollars.

Persaud, who is a supervisor at the Guyana Revenue Authority (GRA), said that she had signed up for insurance because it was being offered by her workplace. It was following the birth of her first child that she began to truly appreciate the benefits of having health insurance coverage.

“When I got my first child my insurance allowed me credit facility and covered my hospital bill. I didn’t [have] the burden to pay the entire bill at once,” she added.

She recently delivered a baby at a private hospital, and was able to have $100,000 of her expenses covered by her insurance. She welcomes the government’s initiative that will now mean lower payments for her and more disposable income that she can use in other areas of her life.

“I think it’s a good initiative, not just for me, but now other people as well will get help with a health plan at lower cost,” she said.

Meanwhile, Onecia Bacchus, a mother of two, also recognises the importance of health insurance to her family. She has life and health insurance policies with GTM, which is also catered for through her work place.

“At some point, we will need medical care that comes with a cost. We do not know when, where, at what point or what our financial situation might be when it happens. So, in order to cushion some expenses, health insurance is a great asset to turn to,” Bacchus commented.

Thirty-one-year-old business owner Jason Benn does not currently have any existing policies, but he noted that getting insurance is something he has been meaning to put in place, particularly life insurance.

“It’s something I’ve wanted for a long time but have procrastinated on, but I want to get it done at least for the life insurance. Insurance is something very beneficial and a good move because at the end of the day you never know what is going to happen tomorrow,” he commented.

With hopes to start a family someday, he sees it as a good measure for his family life.

“With the life insurance it will be a great assistance if I have children and something happens that you don’t plan for, the life insurance would be able to deal with a lot of the issues, and cover certain expenses that they won’t have to deal with like burial and such, and with the money left over it can go to the beneficiaries,” he said.

He too welcomes the initiative and plans to take full advantage of it.

“That’s something that I always welcome; anything to help the public I will always welcome it. At least you not just paying taxes all the time, you can get back this benefit,” he said.