Why You Should Have a Health Insurance Policy? 6 Reasons

why have a health insurance policy
Importance of Health Insurance

In my opinion, everyone should have a health insurance policy. It is one of the most important financial decisions in life. Unfortunately, because of some reason, some people do not show interest in it or have the least interest. However, there are people who have a health insurance policy on top of the priority list and understand its importance.

Let’s understand the importance of health insurance with this example:

Mr. AMr. B
Have a health insurance policy.Doesn’t have any health insurance.
Unfortunately, become sick and was hospitalized.Mr. B becomes sick and was hospitalized for a few days.
His health insurance company paid a claim for his hospitalization costs.In this case, Mr. B paid hospitalization costs from his own pocket.
******

In this example, you can see that you have to bear all the medical expenses from your own pocket if you don’t have a health insurance policy. Here are some of the following reasons to have it.

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1- Uncertainty and High Risk

We can’t spend a single day without uncertainty and risk in life. We are living in a world where pollution is increasing day by day. The number of diseases is increasing. Nobody is 100% safe, and, anyone can become sick anytime.

You can not stop sickness/illness/accident and hospitalization but you can be prepared for medical expenses. Health insurance is a good option for it.

2- High Medical Cost

There are multiples of diseases for which treatment costs are very high. Whether you take the treatment in India or abroad, medical expenses are very high. Cancer, heart disease, and kidney problems are very common diseases and their treatment costs are very high.

have a health insurance policy bcz
High Medical Cost

It is not easy to handle these high medical costs, especially for lower and middle-class families. They do some saving for their future needs and goals. Having health insurance is a good option.

3- Don’t Need to Compromise Your Long-Term Goals

if you have a health insurance policy, you can protect your long terms goals and savings. Don’t believe me? Almost all people, especially the middle class and lower class people earn money and save some money on monthly basis for their child’s higher education, child marriage, purchasing a home, dream car, retirement, etc.

But sometimes, unfortunate sudden illness or accident wastes all your saved money. Because in the absence of a health insurance policy, you spend your saved money on hospitalization and treatment expenses.

Let’s Understand with this imaginary example:

Mr. Sharma was running a small shop, His income was Around Rs. 30000 per month. Mr. Sharma never purchased any health policy. He was saving Rs. 12000 every month for his child’s higher education and Rs. 18000 was his monthly home expenses.

After 5 years, he saved Around Rs. 720000. He was happy that he has saved a good amount for his child’s higher education which he may need after a year.

Unfortunately, one day when he was coming from his shop, he felt a severe headache. He consulted a doctor and went through some diagnostic tests. The doctor advised him a major brain surgery because of some major problems in the brain. He was admitted to the hospital. After 5 days of treatment, he was discharged from the hospital.

He and his family were happy that he was well now but somewhere he was disappointed. He had spent around 90% (Rs. 6.48 lac) of his saving amount on his treatment. Now he has only seventy-two thousand rupees only.

He could save these savings if he had a good health insurance policy with a good sum assured. But now it is too late in this case, he should have planned this very much earlier.

4- Income Tax Benefits

Health insurance policy is more than coverage of medical expenses. You also get tax benefits on the premium you pay. The premium you pay towards health policy, you are eligible for exemption under section 80 D income tax Act 1961.

Individual and FamilyParents
Premium paid for self, spouse and childrenPremium paid for parents
You can claim maximum tax benefits on the premium of Rs. 25000 (if age below 60 years)Individuals can claim maximum tax benefit on the premium of Rs. 25000 (if parents age below 60 years)
You can claim maximum tax benefits on the premium of Rs. 50000 (if Age more than 60 Years)Individuals can claim maximum tax benefit on the premium of Rs. 50000 (if parents’ age is more than 60 years/Sr. Citizen)
Tax benefits on health insurance premium

You can claim tax deduction benefits of Rs. 5000 if expenses towards preventive health checkups.

5- You Can Protect Yourself From Being in Debt

If you have a health insurance policy, then it may also protect you from being in debt. Just imagine you don’t have any policy and you don’t have any savings also. What will you do in case of any medical emergency? How will you manage the medical expense and hospitalization costs?

Either you may sell any assets and arrange the money or you will take debt from friends, relatives, or any financial institutions. You take money from anyone, debt is always a debt. But if you have a health insurance policy then you may claim your treatment cost from the insurer.

6- Employment HI Coverage not sufficient

Maybe you are a salaried person and you have a health insurance policy from your company side. But do you think that the sum assured is sufficient?

If the sum assured is not sufficient then you may also have a personal health insurance policy of a higher sum assured.

Conclusion – Have a Health Insurance Policy

Health insurance has its own importance and you should have a health insurance policy. Nobody knows the future and a medical emergency or medical problem may happen anytime and any day.

If you have a health insurance policy, it will be very helpful for you to handle your treatment expenses. There are several companies like Acko, Hdfc Ergo, Etc which are providing health insurance in India.

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