Top 5 Reasons Why You must Step Up Your Health Insurance this Diwali

3 min read

The Diwali season is here and you would read captions and slogans reading ‘Have a happy and safe Diwali’. While family celebrations can make your Diwali happy, when it comes to safety and health, you need to make wise choices. While you can take safety precautions when celebrating and making healthy choices in food, a look at your health insurance policy is also needed.

This Diwali you need to step up the coverage of your health insurance policy. Here are the top 5 reasons why –

1. Medical expenses are on the rise

This reason is a no-brainer. Medical expenses and the cost of treatments are going through the roof. Get admitted to a hospital and your bill would easily amount to tens of thousands if not lakhs. If you avail of specialized treatments, the costs would increase further. Even the numbers underline the rising medical expenses. In May 2021, medical inflation increased to 8.4% while in June 2021, it was recorded at 7.7%. These rates are expected to grow in the coming years as treatments become modern and more advanced. So, you need to protect your finances against these rising expenses, and enhancing health insurance coverage is the only way to do so.

2. Diseases and injuries have become common

As against the rising medical inflation, diseases also are on the rise. Even the pandemic underlined the importance of optimal coverage as even healthy adults faced high medical expenses due to COVID. So, even if you practice a healthy lifestyle, accidental injuries or illnesses can strike unannounced and result in an emergency. As such, you need optimal coverage to pay the medical bills incurred due to illnesses or injuries.

3. Optimal coverage is needed for all family members

This is especially true if you have a family floater policy. If multiple members are covered under the plan, you need a high sum insured so that in the case of multiple claims, your policy does not fall short in covering the medical bills. So, if you are insuring your family members under a single policy, it is time to step up the coverage for an inclusive scope of protection. 

4. You need savings for your financial goals

If you have a limited sum insured and the medical emergency incurs a higher bill, you would be forced to either liquidate your savings or opt for a loan. Liquidating your savings is a bad idea since it would affect the other financial goals that you have. For instance, if you draw upon your child’s education fund or your retirement corpus, meeting these goals would become challenging if the corpus is depleted.

On the other hand, borrowing would incur additional interest expenses and can strain your financial budget.

To avoid these two possibilities, a higher sum insured is advised. If the health plan is sufficient, you can safeguard your savings and meet your financial goals as planned.

5. You can save higher taxes

A high sum insured means a higher premium outgo. As the premium outgo is increased, you can claim a higher deduction under Section 80D of the Income Tax Act, 1961. A higher deduction allows a higher tax saving too.

Given these reasons, this Diwali, make a wise choice. Rather than buying independent Diwali gifts for the family, step up your health insurance coverage. This would be a more relevant Diwali gift for kids and your whole family. If you own a business, give health insurance as a Diwali gift for employees and secure their finances. 

To step up your health insurance coverage, invest in a super top-up health insurance policy. This policy helps in enhancing the cover without putting too much strain on your pockets. You can opt for a high sum insured and the resultant premium would not be very high. 

So, choose the gift of health insurance this Diwali and secure your finances against medical emergencies. Buy health insurance online for ease of insuring yourself. Online health insurance plans also help in saving on the premium cost as you can compare and invest in the best health insurance policy.

So, step up your coverage with super top-up health insurance plans or enhance the coverage of your existing health insurance policy on renewals. Whatever you do, make sure that the coverage is sufficient to pay your medical bills because the bills can go up to lakhs in severe conditions.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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