Why is buying Health Insurance important?

February 27, 2020

why-is-buying-health-insurance-important

India has one of the lowest insurance penetrations in the world. One of the biggest reasons for this is lack of awareness. Most people still consider insurance policies like health insurance a burden or added expense. But look deeper, and you will understand that health insurance is one of the most important purchases in life for every individual.

What makes Health Insurance plans so important?

Here are the top 5 reasons that will help you understand the significance of health insurance better:

1. Rising cost of healthcare in India

India has one of the highest healthcare inflations across the globe. Various studies suggest that healthcare inflation in India is growing at twice the rate of overall inflation. This is the biggest reason to purchase health insurance. While you might be healthy now, you can never say what might happen in the future.

In case you suffer from a severe illness, the treatment could make a huge dent in your savings. With health insurance, such healthcare expenses would be taken care of as per the limitations and terms of the policy.

2. Changing lifestyle

The importance of health insurance has increased over the years due to our changing lifestyle. We now have demanding professional and personal lives, and this significantly impacts our overall health. The modern work environment is very challenging, and high levels of stress, unhealthy food habits and minimum physical activity is the order of the day.

It also means that the chances of people suffering from serious health conditions are at an all-time high. India is already the diabetes capital of the world, and people as young as in their 20s and 30s now suffer from conditions like high cholesterol and hypertension. A health insurance policy is a smart way to secure your health.

3. Treatment quality

The quality of treatment you receive has a direct impact on your recovery. Reputed private hospitals are generally known to have the best of medical staff, equipment and services to accelerate your recovery. But treatment at one such reputed hospital could be costly. One of the most significant health insurance benefits is that it allows you to pick reputed hospitals and receive quality treatment.

4. Financial wellbeing

Any unexpected visit to the hospital could have a major impact on your financial health too. It can impact your long-term financial goals and overall quality of life. With the help of health policy, you can better focus on your life goals and confidently invest in your future. Moreover, it will also protect you from taking expensive loans like Personal Loans that you might have to take to afford the expensive treatment in case of illness.

5. Tax benefit

While the tax benefit should never be the only reason to invest in health insurance, it sure is a considerable add-on. Under Section 80D of the IT Act, individuals below the age of 60 years can claim a tax deduction of up to Rs 25,000 on premiums paid for a health insurance policy in a financial year.

The limit is up to Rs 50,000 for policies purchased for individuals above the age of 60 years. If you have purchased a policy for yourself and your senior parent, you can claim a deduction of up to Rs 75,000 in a financial year.

Right time to purchase Health Insurance

Now that you know the top reasons to buy health policy, you might be thinking about what is the right time to purchase a health plan. Know that all the different types of health insurance products get more expensive as you age. It is always better to invest in one as early in life as possible. 

You can consider individual or family floater plans as per your requirements. Always consider a reputed insurance provider for your health policy and make timely premium payments to remain protected.

Customers can apply for Health Insurance, here.

Non-customers can check for Health Insurance quote, here.

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