Importance of Health Insurance : Why Health Insurance Is Important?
Health insurance is the type of investment that should take top priority when you are planning your financial investments. It is the type of insurance wherein the policyholder, also known as the insured, can claim the expenses incurred against medical treatments or surgeries. The insurer bears the cost of the treatment up to the sum insured chosen by the policyholder. While you may know how health insurance works, it is equally important to understand why health insurance is important. Let’s find out.
Health insurance – why is it important?
The following are some of the most significant reasons explaining the importance of health insurance.
Medical costs are rising with every passing year
Medical costs have increased dramatically in the last decade alone. This is attributed to the fact that inflation has become a reality of modern times. As such, if you don’t have insurance, you may end up spending a significant portion of your savings on medical costs. Spending your savings on medical expenses can affect the sums you are setting aside for other financial goals, including your retirement fund.
Lifestyle diseases are becoming increasingly common
Another significant reason why health insurance is necessary is that more and more people are suffering from lifestyle diseases, which were once considered rare. The shift in people’s lifestyle is making them more prone to several severe health disorders – from early diabetes to cancers. Stress from hectic work schedules, unhealthy eating habits, erratic sleeping hours and the rising pollution levels are some of the factors that are contributing to lifestyle diseases. All these modern-age problems are increasing the risks of developing health issues and making health insurance investments incredibly important.
Health insurance can significantly reduce your out of pocket expenses
Typically, health insurance policies are designed to ensure that your out-of-pocket expenses are reduced considerably. These policies cover you against not just the cost of treatment in the hospital, but also against several other expenses associated with the treatment. Expenses start raking up even before one is hospitalised and can last for days after one is discharged from the hospital. All these expenses can take a huge toll on your finances, which is why it is essential to invest in an all-round policy with a higher sum assured to reduce out of pocket expenses.
You can avail tax benefits
While we have covered why mediclaim is important on a general level, it is essential to remember that health insurance also affords financial gains in the form of tax deductions. Section 80D enables all health insurance investors to avail tax deductions against payments made towards purchasing health insurance. Depending on your age and the people for whom you are purchasing health insurance, you can avail deductions of anywhere between ₹25,000 and ₹100,000 per annum, under Section 80D.
Now that you know why medical insurance is important, ensure you invest in an excellent all-round insurance policy, which provides maximum coverage against various diseases. If you need any assistance in purchasing health insurance, you can reach out to us at Pinc Insurance. We can help you select the right insurance policies with maximum coverage, as per your budget.