Is health insurance necessary?

Is Health Insurance Really Necessary?

4th May 2022 8min read 142 views

In India, people rarely discuss medical costs or health insurance. As per data collected in 2021, only 514 million Indians had health insurance plans. The insurance penetration in the country stands at just over 35%, which means a majority of Indians pay for all hospital treatments from their pockets. Many have to procure loans or sell assets to repay medical bills. Let’s look at how a health insurance policy can benefit you.

Benefits of Health Insurance

Financial Stability
Most people work hard their whole lives to enjoy financial stability. A single accident and hospitalisation could completely wipe out your savings. Health insurance plans help cover the cost of hospital treatments, allowing you to remain financially stable regardless of what comes your way.


Treatment Options
When it comes to healthcare, you never want to compromise. If you don’t have health insurance, you may have to opt for treatment at an affordable hospital. With a health insurance policy, you can enjoy the best treatment by the best doctors without continuously worrying about the cost.


Beat Medical Inflation
In December 2019, medical inflation was 3.8%. By June 2021, it rose to 7.7%. Your health insurance policy will help you deal with medical inflation. If you buy health insurance when you’re young, you can get a high sum insured at an affordable premium. For every claim-free year, you will get a No-Claim Bonus (NCB) in the form of an increased sum insured. The increase in your sum insured will allow you to beat medical inflation. Even if you do not get the NCB, the sum insured will help you pay for medical bills, no matter how much the costs increase.


Family Safety
You can choose to purchase a family health insurance policy that covers your entire family under a single policy. These health insurance plans for family members make your paperwork quick and easy, and they provide financial support when you need it most. At Edelweiss General Insurance, you can cover up to eight family members under a single plan.


Early Detection
Many health insurance plans also cover preventative tests and annual check-ups. Potentially life-threatening diseases, such as cancer, can get detected during these routine checks. Early detection allows for intervention and better chances of survival. Some health conditions, such as cancer or kidney failure, may not be covered by your base health insurance policy. For enhanced coverage, you can purchase a critical illness policy or add-on.


Tax Benefits
Health insurance plans also provide certain tax benefits. You can claim deductions from your taxable income against the amount you pay as your health insurance  premium.


Although most Indian refuse to talk about medical costs, we cannot deny that health insurance is necessary today. You can look for plans online and pick one that offers the coverage you require at a cost that fits your pocket. Remember to check the inclusions and exclusions before you make a decision. At  Edelweiss General Insurance, you can opt for policies that provide a sum insured of up to INR 1 crore. Additionally, we provide critical illness cover as part of our gold and platinum plans. If you opt for the silver variant, you can still choose critical illness cover as an add-on.


https://www.statista.com/statistics/657244/number-of-people-with-health-insurance-india/#:~:text=In%20the%20fiscal%20year%20of,the%20lowest%20number%20of%20people.
https://www.thehindu.com/data/data-medical-expenses-climb-after-second-wave-adds-to-financial-stress/article61441063.ece

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