We are living in an era when the number of health risks is steadily increasing. A significant health emergency can create an enormous hole in a person’s wallet and, most likely, exceed the amount of savings. In such a case, the importance of health insurance is inevitable.
Nobody likes to rely on others to cover their healthcare costs during a crisis. As a result, there is a growing need to be financially prepared for such circumstances as soon as possible. However, before making the necessary decision, it is critical to understand why health insurance is vital in full. Several factors contribute to the relevance of health insurance in India.
What is Health Insurance
When you purchase a health insurance policy, you enter into an agreement that binds the insurer to provide financial compensation in a medical emergency. However, the insurance contract terms do not have to be limited to only emergencies but also cover routine visits and hospitalization costs.
Insurers collaborate with hospitals to provide policyholders with conventional medical treatments. When you visit an affiliated hospital, you may be eligible for services such as cashless treatment, depending on the conditions of your insurance. When you face a health crisis, the necessity of health insurance becomes apparent, and it helps you focus solely on your recovery.
Importance of Health Insurance
There are countless reasons to get health insurance, and if you have a family to support, you can get family health insurance to cover their medical requirements. However, the cost of health insurance differs for various people and depends on multiple aspects of having good insurance coverage.
To prevent lifestyle-related diseases
The prevalence of lifestyle diseases is increasing, particularly among those under 45. Diabetes, obesity, lung issues, heart disease, and other conditions common in older individuals are now also common in younger people. Sedentary lifestyles, stress, pollution, unhealthful eating patterns, gadget addiction, and irresponsible lifestyles are some contributing factors to these disorders.
While taking preventive measures can help fight and control chronic diseases, a tragic situation can be financially challenging to deal with. Investing in a health plan that covers regular medical testing can help detect certain conditions earlier and make it easier to manage medical bills, giving you one less thing to worry about.
To take care of your family
When looking for the best health insurance policy, you can choose to cover your complete family under one policy rather than purchasing individual policies. Consider your elderly parents, prone to disease, and your dependant children. If you have good health insurance, you will not have to worry about ensuring they receive the best medical treatment. Thoroughly research, consult with professionals for an unbiased perspective and ensure you get a plan that provides comprehensive coverage.
To counter inadequate insurance cover
If you currently have health insurance (for example, through your employment), find out what it covers and how much coverage it provides. It is likely to give basic coverage. If your current policy does not cover potential risks, such as diseases or illnesses that run in families, it may be insufficient in times of need. And, as medical treatments advance, having a bigger sum assured may ensure that your every medical requirement is financially met. But don’t panic if you can’t afford a more comprehensive plan right now. You might begin with a low cover and progressively raise it.
Income tax benefit
Health insurance premium payments are also tax deductible under Section 80D of the Indian Income Tax Act. Individuals under the age of 60 can take a deduction of up to 25,000 for health insurance premiums for themselves, their spouse, or their children. If you get health insurance for your parents aged 60 and up, you can deduct an additional $50,000.
Dealing with medical inflation
As medical technology advances and diseases become more prevalent, treatment costs increase. It is also critical to note that medical expenses are not restricted to hospitals. The prices of doctor’s consultations, diagnostic tests, ambulance charges, operating room bills, medicines, room rent, and so on are all rising. If you are not well prepared, any of these things could burden your money significantly. By paying a relatively low annual health insurance premium, you can avoid the burden of medical inflation while receiving quality care without worrying about the expense.
To protect your savings
While an unexpected sickness can cause mental pain and stress, another aspect of coping with health concerns can drain you – the costs. You can better manage your medical expenses by purchasing an appropriate health insurance policy without depleting your funds. Indeed, some insurance companies give cashless treatment, so you won’t have to worry about reimbursements. Instead, your funds can be used for their intended purposes, such as home purchase, education for your child, and retirement.
Get insurance early to protect your safety
Purchasing health insurance early in life offers various advantages. Because you are young and healthy, you can get policies at lower rates, and the benefit will last as you age. You will also be given more broad coverage alternatives. In addition, most insurance features a pre-existing condition waiting period that prevents coverage for pre-existing illnesses. This time will expire while you are still young and healthy, providing comprehensive coverage that will be essential if you become ill later in life.