keyboard_backspaceGo Back

Why is Health Insurance Important in India?

Many of us think that health insurance is not of much use to them. But the importance of health insurance is rising day by day with the ever-increasing costs of medical treatments. In India, there are various health issues present among the spread of population. And the cost of treatment for those issues is rising like anything. The effective solution to this situation is having health insurance and securing our future.

Health Insurance: The Concept

The concept of health insurance is very easy to understand because it is simply an agreement between the insurance provider and the insured. The agreement by which the insurer agrees to pay for the medical costs incurred for the treatment of the insured who pays the premium in return. Insurance companies have tie-ups with the network hospitals to provide cashless facilities to their customers. There are a variety of health insurance policies available in India for different people and their different needs. People buy insurance policies according to their needs and manage the financial crunch in an emergency.

Importance of Health Insurance in India

When we think of why health insurance is important in India, some common points come to our mind: healthcare costs and securing family members, etc. Let's look at all the factors that prove that health insurance is important.

Health Insurance deals with our changing lifestyles. 

In India, the lifestyle of people is changing drastically. The modern lifestyle forces them to work for more hours and travel a lot. The result of this is less attention towards health and fitness. There are a variety of diseases and health issues that have become common these days among the country's population. These health issues become severe and need expensive treatment in future. To tackle these situations and manage finances, it is necessary to have a health insurance policy.

  • It protects our family members.

We are more concerned about our family members and their health. So when it comes to choosing health insurance, we will opt for the plan which provides coverage for family members. A family floater insurance plan and group insurance plan are the two options which provide cover to your family and secure them against the healthcare expenses. The pressure of paying for all the members is on a single earning person, but you can manage it through the cost-effective options available in the Indian market.

  • It helps in dealing with the rising medical costs.

The severity of diseases and the costs required to treat those diseases have risen to a great limit these days. When a person gets hospitalized, there are a variety of expenses which need to be fulfilled to get the proper treatment. The financial burden faced by the person in such a situation is an added problem. Health insurance comes to help you by dealing with the rising medical costs.

  • Health Insurance protects our savings and manages finances.

Sudden health issues create both mental and physical pressure on the person. If you are not prepared financially for such a situation, all your savings will be spent on the treatment, and your efforts will go waste. But if you have health insurance, it protects your savings and helps manage finances more effectively. It pays for your treatment by charging you a small premium.

  •  It provides financial safety in times of emergency.

All of us want to live a life which is financially secured. The efforts we make in our lives to earn money and save it for the future. Medical emergencies and sudden health issues are the enemies of our hard-earned savings. To get financial safety at the time in such situations, we must opt for a health insurance policy.

  • Tax benefits are available as per the Income Tax Act.

How can we ignore the tax benefits from health insurance? Section 80D of the Income Tax Act allows tax exemptions for the cost of premiums paid towards health insurance. It simply means that we get insurance cover for healthcare expenses and save money from the tax deductions. In this way, health insurance provides you double benefits.

  • Availability of suitable insurance plans for all.

The diversity of the population in India is so extreme that there are different people with different insurance needs. According to these varying needs, the insurance providers have developed different insurance plans suitable for different people. Individual, family floater, senior citizen, maternity and other plans are available as per the insured's need. People can choose the best option for themselves from the available plans.

  • Health issues at a young age.

Rising pollution, bad eating habits, and a changing lifestyle are the common factors that harm people's health at a young age. They suffer from the diseases at an early age and need expensive treatment. Health insurance takes care of such medical issues and avails free health check-ups. These check-ups give you the knowledge of your health condition and prospective diseases in advance.

  • You can avail the best treatment for your health.

Getting the best treatment for your health issues has become difficult due to the rising costs. When you buy a health insurance policy and pay for the premium, the insurer takes care of your treatment expenses. You can avail the best treatment with the help of your insurance plan, too, by paying a small amount as a premium.

  • The insurer offers wider coverage with an extra premium.

Even if your basic health insurance policy provides you less coverage, there is no need to worry. There are several add on covers available for your needs which you can avail of by paying some extra premium. Insurance providers offer you the required coverage through various plans and a range of premiums.

  • Availability of lump-sum benefit policies.

Some health insurance plans are available that provide the entire sum insured in case of occurrence of the covered event. If you are suffering from a critical illness, and the same is covered under your policy, you can receive the above benefit. These policies provide financial support for the expenses such as rehabilitation or physiotherapy and monitoring devices for critical illnesses.

  • The cashless treatment was made available at network hospitals.

The network hospitals of the insurance provider avail the cashless treatment for the insured person. There is no need to pay for your hospitalization and other expenses covered under the policy. The claim procedure is carried out by the Third Party Advisors at the hospital. You can be worry-free about the treatment and the expenses incurred.

  • Free medical check-ups for the insured.

Many insurance providers offer free medical check-ups to the insured persons after certain intervals. These check-ups make you aware of your health condition time-to-time. You can take the necessary steps to improve your health and avail any treatment required. The other side of these check-ups is that the insurance companies decide the terms and conditions of your policies based on the results of these check-ups.

  • Pre and post-hospitalization costs settled.                                                                                                                                                                         Health insurance plans provide coverage for hospitalization and the other expenses related to the treatment. It also covers the pre and post-hospitalization expenses up to 30 days and 60 days, respectively. This helps you to manage finances during a period of emergency. You can focus on your treatment and recovery as early as possible.
  • No claim bonus for every claim-less year.

 The majority of the health insurance providers offer the no claim bonus to the insured if there is no claim filed during the policy coverage period. If you    do not file any claim in the period of cover, you will get no claim bonus either in the form of a discount in the premium for renewal of your policy or extra coverage in the renewed policy.

  • Comprehensive deals for young buyers.

Those who buy health insurance at an early age get comprehensive deals from the insurers. At a young age, there are fewer chances of any pre-existing diseases, and the diseases diagnosed later will be covered in future automatically.

  • Lifetime benefits for early purchasers on renewal.

If you are buying insurance at an early age, you can enjoy the full benefits of your policy. The restrictions of the waiting period will be over in the phase where you will not need them. And at the time you may feel the need for them, you can avail the claim. You can also receive a loyalty bonus from the insurance provider.


We have gone through the concept and the important factors of health insurance. Considering the present scenario in India, the spread of diseases among people, changing lifestyles, and incorrect habits, we can say that health insurance is highly important. It encourages you to stay fit and protects you financially from healthcare expenses. Buy a health insurance policy suitable for your needs and secure your future.


Leave a Comment