Importance of health insurance policy amidst rising cost of medical expenses

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The importance of health insurance in India in the current scenario of rising healthcare costs and the spurt of new and emerging diseases is inevitable. Medical emergencies do not come with prior notice and they always affect you financially and emotionally. 

We know that health risks are an inevitable part of life. Hence, we cannot ignore the importance of health insurance coverage, especially in the current time post the covid-19 pandemic. In fact, the pandemic is a great example of how lives can change overnight when calamity or health hazards strike. And that is one of the key factors that has encouraged people to embrace the coverage of health by means of comprehensive health policies.

But despite that, there are many people who are still without insurance coverage. Some of them are of the view that they are financially stable and do not require health insurance. However, the fact is, there has been a huge rise in the number of critical illnesses and people falling into the trap of these illnesses. Further, treatment against such illnesses is so expensive that it may drain you financially if you do not have the support of insurance.

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Importance of Health Insurance : Health Insurance Benefits

Here are some of the best health insurance benefits listed below:

1. Make healthcare affordable

The premium one pays for buying health insurance is effective if you compare it against the charges that you may incur in case of a  critical illness. This is because if you go for treatment of a critical health condition without the support of insurance, you will have to bear the maximum burden financially. Hence, better to pay  an affordable insurance premium than to drain all savings on health treatment.

2. Coverage against hospitalization

By covering most of the hospitalization charges, health insurance makes it easy for people to forget about the costs incurred on treatment and to concentrate on recovering with the right treatment.

3. Cashless treatment facility

Cashless facility is something offered under an insurance policy wherein the insured can get treatment in a hospital that is enlisted in the insurer’s empanelled hospital list. This means that by getting the entire treatment done in an empanelled hospital, the insured can claim for a cashless facility where the payment of treatment is done by the insurer directly to the hospital and the insured doesn’t have to make any payment.

4. AYUSH Treatment

AYUSH or Ayurveda, Yoga, Unani, Siddha, and Homeopathy treatments are also covered under many health insurance policies. However, the treatment must be done at government approved treatment centres. IRDAI makes it clear that insurance companies must cover AYUSH treatments up to an extent, depending on the company policies.

5. Support of Domiciliary Hospitalization

Domiciliary treatment is one where the patient gets treatment at home. So, in case the patient is not in a condition to go to the hospital or there are no proper beds available at the hospital, she/he can get the treatment done at home under domiciliary hospitalization.

6. NCB or No Claim Bonus

For every claimless year, a policyholder receives a benefit in the form of NCB or No Claim Bonus. This discount can be used to lower the health insurance premium you pay every year to a certain level. This benefit can be used at the time of renewing a policy.

7. Tax Benefits

Another benefit of health insurance premium is that it offers tax benefits under section 80D of Income Tax Act, which is another factor why you must avail health insurance to save tax as well as save your soul at the time of an emergency.

8. Coverage against Covid-19

The recent episode of covid-19 has made it compulsory for health insurance providers to offer covid-19 treatment coverage, as mandated by IRDAI.

The two policies launched under this category are:

  • Corona Kavach
  • Corona Rakshak

9. Added Coverage

There are many added coverage that can be availed under health insurance policies such as day care facility, ambulance costs coverage, yearly or regular health check-ups, vaccination charges, and so on.

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Does Age Have Anything to Do with Health Insurance Premiums?

Yes, it does. Health insurance premiums are determined by many factors including age of the policyholder. While buying a health plan, the insurer takes into account the profile of the insured to evaluate how much medical coverage they need. If the age of the person seeking a health plan is more, he/she is likely to have medical conditions such as high BP, diabetes, etc. All these pre-existing diseases enhance the chances of a high premium on your health policy.

So, while providing insurance plans to the aged and to cover them appropriately, more coverage is offered to them which in turn increases the premium of the policy. Thus, as you age the premium of health insurance also rises. This shows the importance of insurance buying age for policyholders.

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How Health insurance advisors support the policyholders?

It is for sure that health insurance is a necessity in today’s fast paced life. Health insurance is required if you want to protect yourself and your dear family members from the emergency health risks. Moreover, if you are not covered by health insurance and a sudden crisis strikes, it might put an extra burden on your pocket.

There are many people who avoid buying health insurance policies because of lack of awareness, while there are others who avoid it because they are confused about buying a plan. Also, there are other things which keep people away from availing the benefits of health insurance.

Hence, to make it easy for the consumers and to solve all their queries, Health insurance advisory has been introduced by insurers. Under this concept, people are aided with insurance guidance to make it feasible for them to gain knowledge about the various plans and products. This way, even a layman can buy the best policy with the support of health insurance advisors who guide them through the entire procedure including finding the best plan for them.

Read More: Importance of Having a Good Health Insurance Advisor in India

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Conclusion 

You cannot deny the importance of health insurance.  It is true that health insurance plays a significant role in securing people financially, especially in times of health crisis. However, if you have still not covered yourself and your family with the security of insurance due to any reason, it is time to seek help from the health insurance advisors and to buy the best policy suiting your requirements.

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FAQs: Importance of health insurance policy amidst rising cost of medical expenses

How does a health insurance policy help?

A health insurance product covers the medical and healthcare expenses of a policyholder. It compensates for the costs incurred due to illness or injury caused to the policyholder. In fact, in case of a cashless facility, it pays the hospital or care provider of the insured directly.

Why health insurance is important?

Since the medical expenses are rising, it becomes too expensive for people to access good medical facilities without insurance. In fact, without health insurance cover for you and your family, it is quite likely to experience a hole in your pocket if you go through any health emergency. 

Will my age be a factor to decide my health insurance premium?

Yes, age does have an influence on your health insurance premium. The older you are, the higher the premium. 

How do health insurance advisors support my insurance buying process?

The health insurance advisors have enough knowledge about the health products and all their details. Hence, they can support the policy seekers with in-depth knowledge and understanding so that they can buy the best policy suiting their needs. They can also guide the interested people in buying insurance by explaining the inclusions and exclusions as well as the terms and conditions of the policy.

 

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Feb 05, 2023
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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