Top Reasons for Indians to Buy Health Insurance

Why Health Insurance is Essential for Indian Families: Rising Medical Costs & the Need for Coverage

If you’re wondering why buy health insurance for self and family, then the following reasons deserve your attention –

● Medical Inflation Can Make Treatments Out of Reach

Medical treatments are already expensive, and they’ll continue to increase with time. India has a medical inflation rate of nearly 14%, which is roughly 2.5 to 3 times higher than general CPI inflation.

If you don’t secure yourself and your family with adequate health insurance coverage today, future treatment costs can become out of reach.

● Financial Security for the Whole Family

A single health emergency involving one family member can affect the financial stability of the entire household. You can prevent it by covering every member under a family floater health insurance in India. This single investment can create a financial safety net for medical emergencies, protecting your family’s financial savings.

● Growing Risk of Lifestyle-Related Illnesses

Lifestyle diseases have become more prevalent in India, resulting in a surge in chronic conditions. Even if your family members are healthy today, factors like a sedentary lifestyle, unhealthy diet, limited physical movement, and age-related conditions can lead to chronic health challenges that require expensive treatments.

Medical insurance in India with substantial coverage ensures you can access quality healthcare services and treatments when you need them.

● Peace of Mind During Medical Emergencies

A medical emergency can be emotionally and mentally exhausting. Not having the required health insurance coverage can make the situation worse by adding financial challenges.

People seeking peace of mind during stressful situations, such as a family member’s hospitalisation or managing chronic conditions, can benefit from purchasing health insurance in India.
 

Key Health Insurance Benefits Beyond Hospitalisation

The reimbursement of eligible hospitalisation expenses is a known benefit of medical insurance in India. However, there’s more to it. We’ve shared some of the key health insurance benefits that you can receive beyond hospitalisation.

● Coverage of Pre- and Post-Hospitalisation Expenses

During treatment of a chronic condition, hospitalisation is only one part of the treatment. You’ll also have to get diagnostic tests done, seek consultations, buy medicines, and even avail ambulance services before and after hospitalisation. The right insurance policy will cover all of this, subject to applicable limits and other policy terms.

● Daycare Treatment Coverage

You don’t need to spend 24 hours or more in a hospital for treatments like cataract surgery. However, they can be expensive for some individuals. With the right insurance policy, you can claim reimbursement for such daycare treatments, up to the amount specified in the policy.

● AYUSH Treatment Coverage

Not every Indian relies on allopathic and other conventional treatment methods. Some prefer seeking alternative treatments under the AYUSH system.

We’re talking about treatments under Ayurveda, Yoga & Naturopathy, Unani, Siddha, Homeopathy system. If you’ve purchased our Shri Health Suraksha Insurance, then you can claim the eligible AYUSH treatment expenses covered in the policy.
 

How Health Insurance Premiums Are Calculated

Two individuals might have to pay different health insurance premiums for the same type of insurance plan. It’s because premiums are calculated based on numerous factors, such as –

● Age of the Insured

The person’s age significantly influences the premium amount because people have a higher chance of developing illnesses and age-specific health conditions as they grow older. The likelihood of making a claim also increases with age. Hence, a 20-year-old will pay a comparatively lower premium for the same policy than a 45-year-old.

● Sum Insured

The health insurance coverage you choose will also affect the premium. A higher sum insured gives you greater financial protection, but it also costs more. Purchasing add-ons will further increase the premium.

● Medical History & Current Health Profile

Your medical history and existing health condition help the insurer assess the likelihood and potential cost of future claims. People with a healthy medical history and no pre-existing health conditions may get lower premiums than those with multiple pre-existing health challenges.

● Location

If you live in Tier 1 cities, you’ll most likely be viewed as a high-risk individual. It’s because Tier 1 cities like Delhi and Mumbai have higher healthcare costs than smaller towns. Rising air pollution and lifestyle diseases also increase the likelihood of claims.

● Policy Type & Coverage

The health insurance premium you pay will depend on the type of policy you purchase and its coverage. For instance, an individual and a family floater plan will have varying premiums.

Similarly, the coverage terms, including waiting period, pre-existing conditions covered in the policy after waiting period, inclusions & exclusions, applicable limits, etc., all influence the premium amount.
 

Claim Benefits That Make Health Insurance Worth It

The usefulness of health insurance plans in India becomes more apparent when you file a claim. If you’ve purchased your first policy or are planning to buy one, you can expect the following claim benefits –

● Cashless Treatment at Network Hospital

A medical emergency can become your biggest challenge if you don’t have a substantial amount to cover hospitalisation expenses upfront.

However, if you’ve purchased medical insurance in India with a cashless claim facility, you can avail treatment in a network hospital without making an upfront payment. The network hospital and insurer will settle the bill directly, while you can continue availing timely treatment without financial stress.

● Reimbursement Claims Can Support Medical Emergencies at Non-Network Hospitals

If you have to admit a patient in a non-network hospital with no immediate cashless facility available due to a medical emergency requiring immediate hospitalisation, you’ll have to bear the hospitalisation expenses from your own pocket. You can later file a reimbursement claim for all eligible expenses.

Although you’ll have to pay out of pocket initially, you can receive reimbursement once the treatment is finished. This health insurance claim benefit is particularly beneficial because it expands your choice of hospitals.

● Restoration Benefit Can Provide a Second Layer of Protection

Health insurance with restoration benefits can keep your family protected even if the sum insured has been largely used for one family member’s treatment. If you’ve used the entire sum insured, the policy will restore the sum insured amount as per the policy’s terms and conditions to ensure that there is adequate sum insured available for other members of the floater policy.

● Cumulative Bonus Can Increase Your Coverage Over Time

Even if you don’t file a claim in any policy year, you’ll still receive its benefits in the form of a cumulative bonus. Claim-free years may help you earn a cumulative bonus that can be used later to increase your sum insured without a proportional increase in premium.
 

Buying Health Insurance in India: Available Tax Benefits

Buying health insurance in India also makes you eligible for tax benefits. You can deduct the premium amount paid towards health insurance policies during income tax calculations under section 80D/section 126. It will lower your tax liability.

You can claim a deduction of up to ₹1,00,000, depending on the age of the insured people. However, you can claim this tax benefit only if you’re filing your taxes under the old tax regime.
 

How Health Insurance Protects Against Medical Inflation

Buying health insurance today can save you from the inflated healthcare costs of the future. If the cost of healthcare services and treatments increases over the years due to medical inflation, so will the cost of healthcare plans.

In this case, you will have to pay higher premiums for the same coverage that you could have secured at lower premiums in the present time.

Once insured, your sum insured stays protected even as hospital bills rise; the insurer absorbs the inflated costs within coverage limits. If you’ve been accumulating No Claim Bonus (NCB) over the years, you can also use it to increase your sum insured to cover the inflated healthcare costs in the future.
 

Conclusion

Health insurance has become incredibly important for Indian families dealing with rising healthcare costs and changing health risks. Besides creating a financial safety net for medical emergencies, it also provides numerous other benefits, such as cashless treatment facility, cumulative bonus, tax benefits, etc.

If you want to avail quality healthcare services for yourself and your family members, despite the prevailing medical inflation, it’s wiser to invest in health insurance today. People seeking reliable and adequate health insurance coverage can explore Shri Health Insurance Suraksha Insurance plan.
 

FAQs

1. Do health insurance plans cover pre- and post-hospitalisation expenses?

Yes, they do. You can claim expenses incurred for diagnostic tests, consultation charges, ambulance, medicines, etc., during the pre- and post-hospitalisation period specified in the policy.

2. Why are Indian families purchasing health insurance plans?

They’re mostly purchasing plans to create a financial safety net for medical emergencies. Adequate health insurance coverage ensures access to quality healthcare services when needed.

3. Are there any tax benefits available with health insurance plans?

Yes, you can claim the premium amount you paid towards the policy as a deduction when calculating income tax. It will lower your tax liability. The deduction is allowed up to the eligible limit under section 80D. However, you can only avail this tax benefit if you’re filing your income tax returns under the old tax regime.

4. What is the medical inflation rate in India?

India has a medical inflation rate of approximately 14%, which is much higher than the general inflation rate.

5. What factors are considered for health insurance premium calculation?

Numerous factors are considered, such as the person’s age, existing health condition, coverage requirements, and medical history.