Key Benefits of Health Insurance Policy

by SMCIB on Monday, 27 February 2023

Key Benefits of Health Insurance Policy

No matter how long you live or how much wealth you accumulate, without good health, life will not be enjoyable. How do you make sure you’re healthy? By staying fit, exercising regularly, eating nutritious food, and getting enough rest.

However, you can’t deny the unpredictability of life. You may encounter a health concern that needs medical attention at any time. And, you certainly don’t want to compromise on the quality of healthcare because of the involved expenses. Did you know that medical inflation in India has risen by 14% last year?

This is when a health insurance policy comes to your rescue. It takes care of the costs associated with your treatment - providing a clear path to the care you need. In this article, we will discuss the benefits of a health insurance policy.

Key Health Insurance Benefits

A good health insurance plan helps you tackle expensive healthcare bills. It generally covers a wide range of costs, like inpatient hospitalisation, pre and post-hospitalisation, daycare treatments, organ donations, alternative treatments, etc.

Here are the reasons why you should consider investing in health insurance right away –

  1. It Helps You Handle Unexpected Situations Better

    Life is full of unexpected events and emergencies can arise at any moment. With the rising cost of medical care, it is crucial to have a safety net in place to protect yourself and your loved ones. Having the right medical insurance coverage means that you can focus on your health and recovery, or that of a loved one, without having to worry about the financial burden of medical bills. The policy will assist you and take care of the bills, allowing you to concentrate on what really matters - getting better.

  2. It Helps You “Save” Your Savings

    Being prepared to cover unexpected healthcare costs is a necessity in today's world, to maintain your financial stability. In the case of a medical emergency, dipping into your savings should be the last resort. A health insurance policy provides a much-needed safety net, ensuring that your hard-earned money is protected from being spent on medical bills. Your savings can be kept for the use they were intended for.

    With a health insurance plan in place, you can have peace of mind knowing that you will be taken care of - medical emergency or not. The plan intends to cover the rising costs of medical care, allowing you to focus on your health and recovery, instead of worrying about finances.

  3. You Don’t Have To Stress About Large Sums Of Money

    If you get treated at a hospital that has a tie-up with your insurer (known as a ‘network hospital’ in technical terms), you can avail of a cashless claim benefit. All the bills will be settled between the hospital and the insurer directly, with you only having to foot any unapproved expenses. With a cashless claim, you won’t have to be worried about arranging cash for medical treatments and getting it reimbursed later.

  4. It Helps You Plan A Financially Comfortable Retirement

    Securing your retirement starts with taking proactive steps to ensure that you have the right financial protection in place. And one of the most important steps you can take is buying a health insurance policy. Most people envision retirement as a time of peace and contentment, but unexpected health problems can quickly disrupt those plans and create financial hardships. With limited or no sources of income after retiring, paying for medical expenses can become a significant challenge, even for minor treatments or brief hospital stays. A health insurance policy can provide the peace of mind you need during this time by covering the costs of medical care. By investing in a health insurance plan, you are taking the first step towards a secure and worry-free retirement.

  5. It Enables Early Detection of Diseases and Medical Conditions

    Did you know that 27.5% of individuals globally do not meet the physical activity standards set by the WHO? An increasingly sedentary lifestyle and various other factors are contributing to a rise in lifestyle diseases among individuals under the age of 45. This age group is particularly susceptible to conditions such as obesity, diabetes, heart disease, and respiratory problems. The causes of these health issues include stress, pollution, unhealthy dietary practices, an undisciplined lifestyle, and excessive use of technology.

    To maintain good health, it is crucial to adopt healthy habits and to have access to a comprehensive health insurance policy that covers these illnesses. Additionally, it is advisable to check if your policy includes coverage for regular check-ups. This will ensure that there is early detection of any underlying diseases, leading to more impactful treatment.

  6. It Can Cover Your Entire Family

    If you have a family and intend to protect them from healthcare expenses, a family floater health insurance is an excellent option. These plans provide a single sum insured that is shared among all family members. It offers financial protection for dependent parents, children, spouses, and other family members, ensuring that they receive the best possible medical care.

  7. It Helps Tackle Medical Inflation

    Based on a recent study by Business Today, even after slowly recovering from the COVID-19 pandemic, medical inflation is continuing to surge. With advancements in medical technology, the cost of medical treatments has also increased significantly. Medical expenses encompass a range of costs like ambulance services, diagnostic tests, physician consultations, operating room expenses, room rent, etc. These costs can place a significant financial burden on you and your family.

    To mitigate this risk, it is important to have a health insurance policy that provides comprehensive coverage. This not only protects you from the financial stress of rising medical expenses but also helps you keep pace with the inflationary trend in healthcare costs.

  8. It Gives You Tax Benefits

    The Income Tax Act of 1961 provides you with health insurance tax benefits under Section 80D. You can claim tax deductions on the premiums you pay for health insurance bought for yourself, your spouse, kids, parents, etc.


Investing in a good health insurance policy is an investment for your future. It protects you from exorbitant medical bills and ensures access to high-quality treatments. We hope this article gave you enough insights about why health insurance is a necessary purchase.

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