In my opinion, everyone should have at least one health insurance policy. It is one of the important financial decisions of life. Unfortunately, some people do not show any interest in it. However, some people put this on top of the priority list.
Let’s understand the importance of health insurance with this example:
|Mr. A||Mr. B|
|Have a health insurance policy.||Doesn’t have any health insurance.|
|Unfortunately, become sick and hospitalized.||Mr. B becomes sick and hospitalized for a few days.|
|His health insurance company paid all 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.
1- Uncertainty and High Risk
We cant 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 are 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 in which treatment costs are very high. Either you take the treatment in India or abroad, medical expenses are very high. Cancer, heart disease, kidney problems are very common diseases and their treatment costs are very high.
It is not easy to bear these high medical costs, especially by lower and middle-class families. They do some saving for their future needs and goals. Having health insurance is a good option.
3- You Don’t Need to Compromise Your Long Term Goals
You can protect your long terms goals and savings if you have a health insurance policy. 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 higher education, child marriage, purchasing a home, dream car, and retirement, etc.
But some times, unfortunate sudden illness or accident waste all your saved money. Because in the absence of 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 earning was Around Rs. 30000 per month. Mr. Sharma never purchased any health policy. He was saving Rs. 12000 every month for his child 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 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 gone through some diagnostic tests. Doctor advice him a major brain surgery because of some major problems in the brain. He admitted in hospital. After 5 days of treatment, he discharged from the hospital.
He and his family were happy that he 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 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 Family||Parents|
|Premium paid for self, spouse and children||Premium paid for parents|
|You can claim maximum tax benefits on the premium of Rs. 25000 (if age below 60 years)||Individuals can claim a maximum tax benefits on the premium of Rs. 25000 (if parents’s 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 a maximum tax benefits on the premium of Rs. 50000 (if parents’s age is more than 60 years/Sr. Citizen)|
You can claim tax deduction benefits of Rs. 5000 if expense towards preventive health checkup.
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 don 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 Cover not sufficient
Maybe you are a salaried person and you have a corporate health insurance policy. 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 higher sum assured.