Why Having A Health Insurance Policy Is Important Nowadays?
Updated On Apr 08, 2022
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Health Insurance is necessary for every individual, keeping in mind the rising medical costs and spurt of lifestyle diseases amongst Indians. A medical emergency can attack anyone, anytime and impact an individual emotionally and financially. Financial advisors therefore suggest that it is prudent if you buy a health plan early in life.
Reasons Why You Must Buy Health Insurance
Here are six reasons why you must opt for health insurance:
1. Financial Coverage
A health insurance plan acts as strong financial support during medical emergencies. The costs associated with critical illnesses like cancer, heart ailments, etc., can severely affect your financial standing. A health insurance plan can offer you large financial coverage that can cover the costs of treatment in India as well as abroad. It also covers hospitalization costs, diagnosis costs, ambulance and medicine expenses, and provides the ease of instant payouts for greater financial flexibility.
2. Rising Inflation
Inflation is inevitable. You will be surprised to know that inflation in the field of healthcare was recorded at 7.14 in India in the financial year 2018-19.1 Although savings instruments provide attractive interest rates, they are not enough to cover the costs of medical procedures coupled with inflation. Health insurance is a useful tool that can help you meet the probable medical costs. Right from the cost of equipment to the cost of treatment, medicines, and diagnosis, health insurance covers a wide range of expenses and helps you overcome the effects of inflation.
3. Tax Exemption
Health insurance is not only effective in covering future costs but also offers financial relief in the present. You can claim tax deduction* for up to ₹ 25,000 under Section 80D on the premium paid towards a policy. You can claim deductions for your own policy or that of your spouse or children. This can help you reduce your overall tax liability.
4. Affordable Policies
Buying an insurance plan in your youth can be more beneficial than you think. When you are young, you are more likely to be healthier and can get a plan at a more affordable cost. As you grow old, the premium amount keeps increasing. A smart move would be to invest in health insurance in time because the more you delay it, the more expensive the premiums get. Younger people can also get insurance without having to go for health check-ups.
5. Changing Lifestyle
The lifestyle that people embrace today welcomes health issues. And these issues are not just limited to minor illnesses such as fever, cold or cough. Chronic diseases such as diabetes, heart and kidney disorders are equally common nowadays. Thus, it is more important than ever to secure your health with a comprehensive health insurance plan.
6. Fall Back Option
No matter how much money you save, fighting a critical illness can be tough. It can end up costing you your entire life’s savings. The expenditure of the treatment, equipment, and medication can be hard to cover on a fixed salary. Health insurance can offer you the security to overcome these expenses and take some of the burdens off your shoulders.
Conclusion
Given the benefits of health insurance, it must be an integral part of one’s financial portfolio. There are different types of health insurance available. You must choose the one that best suits your needs.
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