8 Reasons Why Health Insurance is Important for Everyone

When a medical crisis strikes, it takes away our peace of mind. It affects us emotionally and physically. More importantly, it stretches our finances beyond the limit. That’s why it makes good sense to have health insurance in place. Unfortunately, 30% (40 crore people) of the Indian population don’t have any health insurance. If you are one of them, you must understand why health insurance is important in the modern world.

Let’s find out what is health insurance and why it matters.

Meaning of Health Insurance

Health insurance is a type of financial coverage you can purchase from an insurance company by paying a premium. You get financial compensation when any sickness, injury or accident leads you or your family member to hospitalization. The insurance company will reimburse the medical expenses to you or the hospital directly.

There are several types of health insurance plans. You can choose the one that meets your protection needs in your budget.

Importance of Health Insurance

The following reasons will convince you to invest in health insurance:

1. Withstand the Growing Medicare Cost

Medical expenses continue to skyrocket over the years. This is one of the topmost reasons why health insurance is important. Treatment for cancer, heart disease, kidney failure, joint replacements and other chronic illnesses can run into lakhs of rupees. These days, the risk of unexpected and life-threatening infections such as coronavirus has also increased.

Health insurance provides coverage against several types of chronic illnesses and surgeries, including COVID-19. Many health insurance plans also offer maternity coverage for would-be parents. Some insurance companies even extend cover under AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) treatment.

2. Get Quality Healthcare

High healthcare expenditure can force you to go for substandard healthcare treatment. This could put you or your loved ones at a major health and life risk. Money shouldn’t be the reason to take this risk. This is another important reason why health insurance is important.

Health insurance enables you to take high-quality medical treatment at the hospital of your choice. You can get access to consultations from the best doctors in the country. You can increase the chances of a quick recovery and better quality of life after the treatment.

3. Safeguard Your Savings

Did you know that the average total expenditure per day of hospitalisation is ₹ 6788 in private hospitals and ₹ 2833 in public hospitals? Imagine all these expenses going out of your pocket. Then, there are also non-medical expenses such as food and transit which can add to your financial stress.

Health insurance will at least take care of your medical expenses for room rent, ICU, doctor consultation, diagnostic tests, medicines, ambulance, etc. Many health plans also cover pre-hospitalisation and post-hospitalisation, daycare and domiciliary treatment expenses. So, the importance of health insurance lies in the fact that your savings remain intact as much as possible.

4. Shield Against Lifestyle Related Health Conditions

If you live a hectic life, you have less time to exercise. You become vulnerable to lifestyle diseases such as hypertension, diabetes, high cholesterol or heart disorders early in your life. Stress, smoking, alcohol, environmental pollution and poor dietary habits also increase the risk of lifestyle-related health disorders.

Health insurance has never been more important than today. A healthy lifestyle will keep most diseases at bay. However, medical cover is still necessary to manage sudden eventualities. Moreover, you can get higher coverage at a lesser cost at a young age.

5. Give Assurance to Your Family

You always try your best to keep your family safe and secure. However, life is full of uncertainties and medical emergencies can happen anytime. You have to be prepared to protect your family, especially if you are the breadwinner or have elderly parents at home.

So, when it comes to why health insurance is important, your family’s financial well-being and future are crucial parameters to consider. A comprehensive health insurance plan will prevent you and your family from being financially handicapped.

6. Facilitate Cashless Treatment

There are times when an unexpected medical situation needs immediate hospitalisation. You are busy running from pillar to post to get timely medical attention. In such a scenario, arranging a large sum of money at short notice can be difficult. It is also inconvenient to seek financial help from someone. This is when you realise the importance of health insurance.

If you have health insurance, you can get hassle-free cashless hospitalisation at any network hospital. All you need to do is to inform the hospital about your health policy. The hospital will then collaborate with the insurance company for direct payment of medical bills.

7. Gives You Additional Coverage

This is usually a lesser-known reason why health insurance is important. If you are a salaried professional, you might not want a health plan because you have employee cover. However, given the spiralling healthcare expenses, it may be a basic cover and insufficient to meet your health emergency needs. It may also not cover all your family members. Moreover, when you leave the company, the employee cover will expire.

Hence, it is a wise decision to buy personal health insurance even when you have employee coverage. A higher coverage will ensure that you have enough money to protect your health.

8. Save Tax

In case you didn’t know, most tax advisors and investment experts emphasise the importance of health insurance. The premium on health insurance is subject to tax deduction under Section 80D of the Income Tax Act of India. Hence, health insurance is a smart way to diversify your investment portfolio and get more tax savings.

You can avail tax deductions of up to ₹ 25,000 for yourself and up to ₹ 50,000 (for self, spouse, children and parents) in a financial year. If the insured person is a senior citizen, then this deduction is up to ₹ 75,000.

Conclusion

Health emergencies don’t come with a warning. Medical care has become increasingly expensive. It can burden you financially. Hence, you must take the importance of health insurance seriously. It can secure both your health and finance. 

Aditya Birla Health Insurance Plans are designed to give you peace of mind that you and your family are safe. The company offers a wide range of health and wellness benefits to give you the best and maximum possible coverage. Visit the ABHI website to know more.