Importance of Health Insurance – Everything You Need to Know

16 February 2023
7 min read
Importance of Health Insurance – Everything You Need to Know
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Health insurance in India is a rapidly growing industry, with more and more people recognizing the importance of protecting themselves and their families from the financial burden of unexpected medical expenses.

There are various health insurance options available in India, including government-sponsored and private insurance plans.

The government's National Health Insurance Scheme (NHIS) is a popular option for those not covered by other forms of insurance. This program provides coverage for various medical expenses, including hospitalization, doctor's visits, and prescription drugs.

Private health insurance companies also offer various individual and group policies. These policies typically offer more comprehensive coverage than government-sponsored plans and may include additional benefits such as coverage for pre-existing conditions and international travel.

When choosing a health insurance plan in India, it's essential to consider factors such as the type of coverage offered, the cost of the policy, and the network of hospitals and doctors covered by the plan.

It's also important to read the policy carefully to understand what is and is not covered and ensures that the project meets your specific needs. 

Importance of Health Insurance

Health insurance is a crucial aspect of personal finance in India. It helps people protect themselves and their families from the financial burden of unexpected medical expenses.

With the rising cost of healthcare, it is essential to have health insurance coverage to ensure that one can afford the necessary medical treatments without having to break the bank. 

Below-mentioned is the importance of Health Insurance in a person's life-

  • Protection Against Unexpected Medical Expenses

Health insurance coverage helps individuals and families protect themselves from the financial burden of unexpected medical expenses.

This is particularly important in India, where medical costs can be very high, and many people cannot afford to pay for them out of pocket.

  • Access To Quality Healthcare

Health insurance coverage ensures that individuals and families have access to quality healthcare. With health insurance, individuals and families can afford medical treatment from the best hospitals and doctors without worrying about the cost.

  • Peace Of Mind

Health insurance coverage gives individuals and families peace of mind knowing they are protected against unexpected medical expenses. This can help them focus on their recovery and well-being rather than worrying about how they will pay for their medical treatments.

  • Tax Benefits

Health insurance policies in India are eligible for tax benefits under Section 80D of the Income Tax Act. This means that individuals and families can claim a tax deduction on their health insurance premiums, which can help them save money on their taxes.

Why Do You Need To Consider Getting A Health Insurance?

Health insurance is a form of protection for you and your family if you get sick or hurt. It can pay for medical care and prescription drugs and even help with lost wages while you're recovering.

If you don't have health insurance, you could pay a lot more than you'll need to get back on your feet after a severe injury or illness. That's why ensuring that some insurance plan covers your health is essential.

There are many different types of health insurance plans, but they all generally do the same: They provide money so that you can pay for medical expenses that occur while you're covered under their care. 

Getting health insurance is not something that you should decide on a whim. It would be best if, instead, you considered getting health insurance because:

1) You might have to pay for medical expenses in the future. If you are healthy, then this is unlikely. But if you are less healthy, it could happen, and you will need coverage.

2) Health insurance offers protection from financial loss due to unexpected medical expenses. This includes the cost of surgery, hospital bills, and even prescription drug costs.

3) Health insurance offers peace of mind when facing an illness or injury requiring medical attention for any reason, including accidents or injuries sustained in work-related activities like construction sites or farming activities.

4) Health insurance can save money on monthly premiums by paying for health services in advance before they're needed so that you don't need to pay for them every month as long as your doctor agrees with this payment method beforehand.

How Does A Health Insurance Help?

  • Combat Lifestyle-Related Illnesses

Lifestyle illnesses are becoming more prevalent, particularly among those under 45. Diabetes, obesity, respiratory issues, and heart disease, all of which are common in older individuals, are also becoming common in younger people.

Sedentary lifestyles, stress, pollution, poor eating habits, device addiction, and unstructured living are all risk factors for chronic illnesses.

  • Protecting Your Family

When looking for the best health insurance coverage, you can cover your family under one policy rather than purchasing individual plans. Consider your elderly parents, who are prone to disease, as well as your dependent children.

If you have enough health insurance, you will not have to worry about ensuring they receive the most effective medical treatment if something were to happen to them. Thoroughly research, consult with specialists for unbiased advice and ensure you select a plan that provides comprehensive coverage.

You may also want to know the Best Health Insurance Plans in India

  • Handling Medical Inflation

As medical technology advances and illnesses become more prevalent, the expense of

treatment grows as well. It is also critical to recognize that medical costs are not confined to hospitals. The prices of doctor’s consultations, diagnostic tests, ambulance charges operating room fees, medications, room rent, and so on are all rising.

If you are not sufficiently prepared, any of these things might significantly burden your money. By paying a relatively low annual health insurance premium, you may avoid the responsibility of medical inflation while receiving excellent care without worrying about the expense.

  • Compensation For Insufficient Insurance Coverage

If you currently have health insurance (for example, through your work), find out exactly what it covers you for and how much coverage it provides. It is likely to offer a primary range. If your existing insurance does not cover potential dangers, such as diseases or illnesses in your family, it may be insufficient in times of need.

And, as medical treatments advance, having a more significant sum assured might ensure that your every medical requirement is financially met. But don’t be concerned if you can’t afford a more comprehensive plan. You might begin with a modest cover and progressively raise it.

What is Covered in Health Insurance in India?

Here are the diseases covered by Health Insurance:

  • Accidental Expenses
  • COVID19
  • Cancer
  • Diabetes
  • High BP
  • High BMI
  • HIV or AIDS
  • Critical Illnesses
  • Heart Disease
  • Specific Diseases

What is Not Usually Covered in a Health Insurance?

Here are some of the procedures that are usually not covered under health insurance-

  • Cosmetic Procedures
  • Fertility Treatments
  • Off-the Label Prescriptions
  • New Technology or Procedures

Some Different Types of Health Insurance in India

  • An Individual Health Insurance

Individual health insurance is a policy to cover you, your spouse, your children, and your parents.

This insurance coverage pays for medical expenses, such as hospitalization for injuries and illnesses, surgical charges, room rent, childcare treatments, and more.

  • A Family Floater Health Insurance

If you want cheap health insurance coverage for everyone in your family, Family Floater Health Insurance is the way to go.

  • A Group Health Insurance

Group Health Insurance coverage is intended for a group of coworkers. As a result, whether you run a start-up or a corporation, you should purchase such plans for your employees.

It is a type of benefit provided to employees. As an employer, you may purchase the coverage to increase employee retention.

  • The Senior Citizens Health Insurance

A senior Citizen Health Insurance Plan is a health insurance policy that is specifically tailored for adults over the age of 60. If your parents or grandparents are above 60, this policy is a suitable fit for you.

  • Maternity Health Insurance

Maternity coverage is available as an add-on to the standard health insurance plan. All expenditures paid during the pregnancy, birth, and postnatal periods are reimbursed.

  • Critical Care Insurance

The prevalence of lifestyle-related illnesses is increasing. With this in mind, insurance firms have introduced the Critical Illness Policy.

  • Top-Up Health Insurance

If you need more coverage, you can purchase top-up insurance. However, such plans have a deductible clause. As a result, in the event of a claim, payment will be given more than the policy-specified maximum.

Conclusion

In addition to traditional health insurance plans, several alternative options are available in India, such as health savings accounts and critical illness insurance.

These options can provide additional protection for unexpected medical expenses and may be a good choice for those looking for more flexible coverage options.

Overall, health insurance in India is essential for anyone looking to protect themselves and their families from the financial burden of unexpected medical expenses. However, with a wide range of options available, it's essential to research and chooses a plan that meets your specific needs.

Health insurance is an essential aspect of personal finance in India. It helps individuals and families protect themselves from the financial burden of unexpected medical expenses, ensures access to quality healthcare, and provides peace of mind.

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