What Is The Importance Of A Health Insurance Policy In Our Life?

Choosing health insurance is one of the most important decisions you’ll make. It’s not just about health; it’s also about your family and your future. What would happen if you were unable to work because of illness or injury? How much money would that cost? You can’t afford to take health for granted, which is why it is important to understand the benefits of a health insurance plan. 

Importance of Health Insurance Plans

If you’re a healthy person, then choosing a health insurance policy can seem like a tedious task. But if you have any pre-existing medical conditions or concerns, it’s an absolute necessity. Hospitalization is expensive and with the private sector being so expensive in comparison to the public healthcare system, buying a good health insurance policy is essential. It will be even more difficult if the individual who is responsible for the cash inflow is now hospitalized. All of this may be prevented by just paying a yearly premium, which will reduce your stress in the event of a medical emergency.

Benefits of Health Insurance Plans

The benefits of a standard Health Insurance Policy includes:

1. Hospitalization Charges

Medical emergencies are seldom forewarned. Even if you are financially secure, medical crises can occur at any time, putting a burden on your finances. The major purpose of purchasing health insurance is to safeguard your family financially in the event of an unforeseen sickness, injury, or accident. It also gives you peace of mind knowing that your finances are secure if something unfortunate occurs to you. 

If you choose a comprehensive health insurance plan, you will also receive pre and post-hospitalization coverage. Pre-hospitalization coverage includes tests performed within 30 days before admission. Post-hospitalization costs cover medications, diagnostics, and follow-ups for up to 60 days following release.

2. Annual Check-ups

We are all aware of the importance of maintaining our health. We must ensure that we practice healthy behaviors and have regular checkups at all stages of our lives. In India, major health insurance offers free yearly check-ups. It means you get one free health exam per year, regardless of how much you claim in that financial year. However, some companies provide a free check-up after four years with no claims. It implies that if you do not file a claim for four years in a row, you will receive one free health exam in the fifth year.

3. AYUSH Treatment

AYUSH Treatment stands for Ayurveda, Yoga, Unani, Siddha, and Homeopathy and is an alternative to standard western treatments. In 2013, the IRDAI (Insurance Regulatory and Development Authority of India) instructed all insurance firms to include coverage for these alternative medical procedures in their plans.

4. Tax Benefits

Section 80D of the Indian Tax Act of 1961 allows a tax deduction on the premiums paid towards a health insurance policy.

Conclusion

It’s easy to see why health insurance plans are so crucial. For many people, it can be the difference between financial stability and total destitution if they are faced with a medical emergency or injury that may leave them unable to work for long periods. You might not think about needing protection in your 20s or 30s but there could well come a day where you do. However, make sure to compare insurance policies before settling on a plan.

Oct 21, 2021
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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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