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Importance of Health Insurance

Written by - Varsha Madhu

July 15, 2019 3 minutes

“Good Health and Good Sense are two of life’s greatest blessings.”

There are plenty of reasons why health insurance is not just a good idea, but it is a necessity. The benefits will depend on the plans you buy and exclusions of the policy.
Many will face a financial crisis when it comes to medical emergencies and to meet the medical cost, people will switch into their savings, and they drain it entirely. So, in situations like this, a health insurance plan could be a real “life-saver” because it covers your hospitalization expenses.

Health insurance increases your accessibility to quality health treatments, including private healthcare, where the cost is still a barrier for many. Health insurance ensures you to get appropriate treatment promptly irrespective of their financial capability.
Especially in a country like India, people have a reduced capability to afford proper medical treatment. Medical insurance provides the much-needed financial stability to an individual.

Why is Health Insurance important?

  • Health insurance can act as an off-guard to protect you and your family.
  • Health insurance enables you to figure out the medical cost that you can incur in the future.
  • A health insurance plan will take care of all the pre and post expenses associated with treatment and helps to reduce your financial burden.
  • The cashless facility offered by many insurance companies helps to reduce more expenses, which are other than medical costs. The patients can focus on recovering rather than being worried about finance/money.
  • Insurance companies provide added benefits such as emergency services, ambulance cover, critical illness cover, hospital cash, and so on.
  • No Claim bonus (NCBs) is the bonus paid to the individuals if he/she does not file a claim for any treatment in the previous year.
  • Health insurance also provides options for free health check-ups. And free health check-ups are also offered to some individuals based on their previous NCBs.
  • Health insurance also covers the rooms rent, which depends on the type of policy the individual purchased.
  • You have some tax- benefits. The amount you pay towards insurance premium is claimable as a tax-savings deduction under section 80C of the Income Tax Act.

Key pointers:

  • Understand the need and then buy the policy.
  • More significant the health issues, lesser the plans. Thus, act wise and opt for a good idea.
  • When if the company insures you, do not solely depend on it.
  • Narrow down to a few insurance companies and opt for the policy that offers you to pay the low premium with more benefits.
  • Insurance premium increases as you grow old. Your age can make a big difference.
  • Take into consideration- “settlement ratio” and “co-payment.”

(settlement ratio: amount paid by the company against the claims which have been made.
Co-payment: A mandate where a policyholder has to bear a predefined percentage of the claim)

Now that you know the benefits and the necessity to buy a Health Insurance do not delay in buying one. You might wait, but emergencies don’t. Thus, it is also crucial to make sure to review your decisions before you buy the right Health Insurance. Companies will offer various insurance policies such as family health protector policy, individual health policies, etc. However, make sure you choose the one that suits your needs and financial commitment.

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