Do I really need a health insurance plan?

Health insurance is one of the most important financial appendages of our times. The recent pandemic of Covid-19 has also made visible the undeniable necessity of health insurance policies in order to safeguard our finances against high consultation, treatment, and hospitalization charges. It is undoubtedly the most important buffer against spending your long term investments on medical costs.

However, people are not always convinced whether they need a health insurance cover or not and the following list seeks to address some of these questions to help you understand why you really need a health insurance plan.

Why You Need A Health Insurance Plan

1. Addresses Sudden Medical Costs

One of the biggest conveniences of having a health insurance policy is the financial cover and support it offers against sudden medical emergencies. No matter how young you are, health insurance is of prime importance for you as many diseases remain asymptomatic without diagnosis and these conditions, known as pre-existing medical conditions are sometimes financially addressed by health insurance companies after an initial waiting period of 2 to 4 years. Investing in health insurance ensures the diagnosis of such underlying disorders as part of the investment procedure and offers you a financial cushioning against sudden medical costs that might arise if any physical disorder rises to the surface all of a sudden.

2. Financial Coverage Against Critical Illnesses

Critical illnesses can affect anyone at any point of time and it is often guided more by genetics than by our financial or social positions. People with a hereditary history of cancer or heart disorders, stroke or renal disorders have a heightened chance of being susceptible to such critical illnesses. Therefore, if you are aware of your family’s history of such ailments, a health insurance policy will be your friend in need of a financially protected future. You can be assured of availing of the best possible treatment without a bugging concern of arranging for the finances.

3. Insurance Coverage

Most health insurance policies come with a hefty insurance cover that is assured to you in case of an accident or the unfortunate occasion of the policyholder’s death that remains fixed from the beginning of the policy term. You are entitled to this amount during times of medical supervision and treatment and is one of the most effective ways of ensuring a backup for your high medical expenses.

4. Tax Benefits

Investing in health insurance comes with attractive tax benefit options and is a smart way of reducing the amount of money you pay as income tax without much complexity. Health insurance tax benefits can help you to claim tax deductions equal to INR 25,000 that you can pay as a premium towards your health insurance company. In case you have a senior adult insured under a health insurance policy, the same amount increases to INR 50,000.

5. Added Rider Benefits

Riders are added benefits that come with many health insurances and critical illness covers that offer you an additional amount of money equal to 50% of the total sum insured subject to the payment of some nominal extra charges. Riders significantly increase your insurance coverage and assure you added benefits that lie within your budget and medical requirements.

6. Plans to Choose Your Right Cover From

Health insurances in India are a fast-growing industry and most insurance policies come with a flexible format of plan coverage to help you to choose from the best plan suited to your own needs from a host of other options. The two most important formats are those of the individual cover and the family floater option. As the name suggests, the individual cover offers financial protection for only one person whereas the family floater option allows you the advantage of securing your family members within the same insurance policy.

Hence, depending on your financial and premium payment capacity, you have the liberty of choosing between any of the two insurance formats. It is generally advised that people with small families and without any major medical history choose the family floater option since the amount of premium payable is less. Contrarily, if you have ailing parents then investing in an individual cover policy is the best way ahead as the amount of premium is calculated on the age of the eldest adult and greater the age, lesser will be the premium amount.

Therefore, whether you are in your early 30s or late 50s, buying a health insurance cover is absolutely imperative to secure you and your family members from the sudden high costs of medical emergencies. The old saying "health is wealth" stands especially true today when our lifestyles are plagued by speed, tight work schedules, and stress, and staying fit often becomes a luxury. Hopefully, the usefulness of having health insurance as listed above will help you to understand why you need to invest in a health policy and steer you towards a financially and medically protected environment in the future.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.