Why it Pays to Invest in a Good Health Insurance Policy

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If you’ve been following the news of late you would have probably come across multiple cases of people being charged a bomb for treatment at hospitals across the country. That medical costs are rising is something we all know, but having to shell out lakhs for ailments which are considered common is something we didn’t bargain for. 

A recent report published by the Central Bureau of Health Intelligence found that around 25% of Indian families borrow money to pay their hospital bills. This essentially means that 1 in 4 families either takes a personal loan from banks or borrows from moneylenders to meet hospitalisation expenses. 

The report also stated that around 65% of the rural population pays for hospitalisation by using their savings like fixed deposits or mutual funds.

Now it would not be possible for an individual to stay healthy all life, for instances of one’s health being affected are bound to occur. So what does one do in such cases? Borrowing money or using all the life savings will have an adverse impact on the financial health, with it possible for these effects to last a lifetime. A smart option in such cases is to buy a health insurance policy.

For those who feel that a health insurance plan is just an extra financial burden, here are 5 reasons which will prove the contrary.

Cashless hospitalisation – That hospitalisation can leave a huge dent in our bank accounts is a well-known fact. The biggest benefit of investing in health insurance is the fact that insured individuals can undergo treatments at network hospitals without having to pay anything (subject to the cover available). With health insurance companies in India tying up with hospitals across the country, finding a network hospital is extremely simple. The insurance company will directly settle the bill with the hospital, ensuring that one doesn’t have to run around during such critical moments. This ensures that the savings are not exhausted on account of illnesses which require hospitalisation.

An individual can also choose the cover he/she requires, with the premium amount varying accordingly.

Tax benefits – Paying taxes can become taxing on individuals, which is why the government has introduced provisions which can help one save tax. One such tax saving instrument is health insurance. The premium paid towards a health insurance policy is eligible for income tax deductions under Section 80D of the Income Tax Act. The quantum of deduction permitted is decided by the government, with this updated during the budget. 

Multiple illnesses covered – The number of illnesses which the medical fraternity comes across each day is incredible. While technology has advanced tremendously, there is still no single cure for all diseases. As such each illness requires a specific form of treatment, with the cost for each treatment varying, depending on multiple factors. The good news is that most health insurance policies offer protection against a number of illnesses. In addition to the general illnesses, a few policies also cover serious issues like cancer.

It is possible to increase the protection provided by a base plan by choosing add-ons for specific illnesses. 

Convalescence benefits – An illness not only results in hospitalisation expenses, it also results in additional costs like travel to and from the hospital, loss of income of patient, etc. A number of policies come with convalescence benefit, wherein the insurer takes care of any additional expense incurred by the insured. Primarily given in cases where the patient has to undergo treatment for an extended period of time, it can also be extended in cases where a patient needs time to recuperate.

Free health check-ups – Getting a health check-up done can be expensive. Insurance companies, in a bid to enhance their services provide free health check-ups at regular intervals. These can help one keep a track of their health, in addition to saving money.

An individual can customise a policy based on his/her needs, choosing to add family members under the same policy. This ensures that the entire family is financially protected during an emergency.

Given these facts, investing in a good health insurance policy is an extremely smart idea, for not only does it help save money, but also provides peace of mind, with insured individuals knowing that any medical expenses will be covered under the policy.