Importance of health insurance

Share Now

There is always the chance of someone unexpectedly getting sick in our hectic lives. This could lead to costly treatments. There's always the chance that someone we love might fall prey to a chronic condition that requires long-term care. There is good news: health insurance. Long-term treatment doesn't mean that your family is in financial trouble. Health insurance helps to ensure that this happens. You can get comprehensive insurance coverage by paying a small premium to the insurer. This will protect your savings against sudden medical treatment shocks. This protects your savings as well as your loved ones' health, so you can enjoy your life.

You need to have health insurance

Three reasons are key to why you should have health insurance.


• There are not enough savings to cover healthcare costs. It is expensive to get treated at the best healthcare facility. It can be difficult for families to manage their finances after a loved one is diagnosed with a serious illness. Nearly 44% Indians are not covered by insurance. People may need to borrow money, take out loans or sell their assets in order to pay for treatment. It is smart to get a health insurance policy. This will protect your health and finances.


• Healthcare costs are on the rise. It is imperative to have health insurance because of the rising medical costs. The medical trend rate (i.e. The rise in per-person costs due to medical inflation. This rate will rise by twice the inflation rate in India. In India, the medical trend rate is expected to be 10% while inflation will rise at 5%~. Insurers report that cancer and diseases of the circulatory systems are the most common claims. They also report the highest number of cases for respiratory diseases and gastrointestinal conditions. You can effectively fight the disease with fixed-benefit health insurance as Critical illnesses such as cancer or conditions related to the heart.


• Hospital costs include a variety of items: Hospital treatment is more than just surgery. Hospitalisation costs can be higher than actual medical expenses due to doctor fees, medicines, and medical check-ups. A lot more can be spent on diagnostic tests and post-operative care, such as having a home medical attendant, which can also add up to a significant amount. All of these costs add up to explain why medical treatment can seem so costly. Many types of illnesses and surgeries are covered by health insurance. They can also be used to cover any other aspect of medical treatment. Fixed benefit Health insurance plans pay the money without requesting a detailed explanation of all treatment costs. The policyholder receives the money immediately after submitting the first diagnosis report.

Health insurance has many benefits

Money paid upfront, without the need to pay medical bills: Fixed benefit plans that cover health insurance pay the full amount upon diagnosis. You do not need to provide proof of hospitalization or treatment. These policies provide full coverage for both before and after hospitalisation. There are no limits or durations. The insurer will pay the money to the policyholder if the insured is diagnosed with an illness that is covered by the policy.

You can get treatment at the facility that suits you best.You can be treated anywhere in India or the world if you have proper insurance. You don't need to compromise on treatment if you have the right amount in your health insurance. Fixed benefit insurance plans provide a lump sum payout on diagnosis. This eliminates the need to go to a hospital network for cashless treatment. You can choose to have treatment wherever you want and when you are most convenient with the money from your health insurance claim.

Low cost, high coverage: Fixed benefit plans offer high coverage for a relatively low premium. This will save you money, and it also means that you can remain worry-free, even if you are diagnosed with a serious illness.

Automatic increase in the sum assured amount: Insurance is more than a cost-saving way to pay for medical treatment. You also get more coverage for every year that you don't claim. Your premium money will not be wasted if there are no claims in a given year. You get more coverage for the premium you pay in a year without claiming.

Fixed premium cost -Fixed benefits are available with fixed premiums for health insurance plans. These plans offer fixed premiums that are guaranteed to remain constant for the life of the policy. This ensures that your household budget does not become more expensive due to rising healthcare costs. If you and your spouse are both covered, some plans offer a discount for the first year.

Tax benefits *Fixed-benefit health insurance plans provide tax benefits. You can deduct up to Rs.25,000 from your taxable income if you pay the premium. This benefit is available under Section 80D. If your age is below 60 years, you can apply for the Income Tax Act. The maximum deduction allowed is Rs 50,000 if you and your family members exceed 60 years of age. You get the same benefit for premiums you pay for your parents.

Subscribe To Our Newsletter

Subscribe to our newsletter to receive up to date news, ideas and resources to help to manage your investment and risks.