Importance of Health Insurance

‘Health is wealth’ is a phrase we have all grown up hearing. But the truth within those 3 words only strengthens as we grow older. We now live in a time where the number of health threats is persistently increasing with each day. A significant health emergency not only compromises you physically, but also financially. More often than not, medical bills exceed your savings. This is why the importance of a health insurance policy is unparalleled.
 

So What Is Health Insurance?

It is a type of insurance that covers hospitalisation expenses incurred by you for any illness, accident or injury. The expenses can include hospitalisation costs, cost of medicines, doctor consultation fees, etc.

By paying a premium to the insurer, you can save yourself and your family from dire financial stresses. Health insurance acts as a protective shield for both savings and healthcare, so that you and your loved ones can live a happy, fulfilling life.
 

Why Is It Important To Have A Health Insurance Policy?

With an active policy in place, you can avail the best treatments and the following benefits-

• Meet The Rising Medical Expenses

  With the advent of new emerging diseases, come breakthrough medical technologies, However, the cost of getting quality treatment is rising exponentially. The growth of science brings advanced treatments, which are really expensive due to new drug development methods and increased efficacy. Shortage of specialist doctors and surgeons in a particular field also causes medical inflation.

  The importance of health insurance is vital in dealing with this situation. It helps you and your family effectively manage the high expenses and lead a healthier life.

  For example, WHO identified SARS-CoV-2, Crimean Congo hemorrhagic fever, and Ebola virus disease as the top emerging diseases/conditions. If you get diagnosed with any of them, you would need an advanced treatment - from multiple consultations and medical tests, to medicines and room-rent. With a health insurance policy, you don’t have to worry about the big hospital bills while you are already going through physical and mental anguish.

• Safeguard Your Family

  Your family means the most to you, and ensuring their good health and safety is of primary importance. Should anything happen to them, you will be ready to provide the best, state-of-the-art medical facilities and help them recover quick,

  Consider your ageing parents, they might need to get hospitalised due to some age related issues like joint replacement, heart conditions, etc. and the doctor would recommend multiple X-rays, MRI scans, and other tests to determine the illness. These can be covered under a health insurance policy.

• Get A More Enhanced Coverage Than A Healthcare Fund

  A Healthcare Fund is basically your savings for healthcare expenses. This can be done by stowing away a certain amount, putting your money in some investment option like a fixed deposit, etc. While this could be useful, it should not be a replacement for health insurance. The treatment and surgery fees in today’s time could cost a fortune, therefore, a healthcare fund will not be enough to deal with all the medical expenses.

• Protect Your Savings

  You have been saving money over the years to fulfil some future dreams and goals, like - buying a house, giving your children a top-class education, their big wedding, and your peaceful retirement. An unforeseen illness can drain your savings, all at once. But with a health insurance policy, you can manage your medical expenditure without dipping into your savings. In fact, some insurance companies offer cashless treatment, so you don't have to stress about reimbursements either.

• Get The Most While You Are Young

  Generally, you are required to undergo medical tests before issuing a health insurance policy. Please note that some insurers make the medical tests mandatory after the age of 45. This varies across insurers.

  The results of such tests will decide whether you will get health insurance or not. The older you grow, the more you get exposed to medical issues, like diabetes, cardiac and respiratory diseases. Hence, there are higher chances that you won't get a health insurance policy. And even if you get one, you would have to pay a lot more for a cover that would cost a lot less at your younger age. Therefore, go for a suitable health insurance cover while you are still in the prime of your life.

• Avail Tax Benefits

  Premiums and payouts made are exempted from taxation under Section 80D of the Income Tax Act, 1961. You can get deductions for the health insurance premium paid for yourself, your spouse, your dependent children, and your parents. This further increases your savings. However, reducing tax liabilities should not be your primary reason to invest in health insurance.

Today, medical advancements ensure that you live longer, by curing diseases that were once considered incurable. But a healthy life comes with a price - quite literally. With Health Insurance, you can be financially prepared for any unforeseen situation in today’s world of climate and lifestyle changes. Because remember, health is an investment, not an expense.