investing in health insurance

10 reasons why investing in health insurance is the best

One of the primary goals that today’s youth has is to lead a life that maximizes their potential. A fundamental rule to creating and living the life that you dream of is preserving your assets. What asset is of greater value to you than your health? There are no limits to what you can achieve as a human being in today’s world if you are fit and healthy. Apart from trying to lead a healthy lifestyle as much as possible, you should also be prepared for the worst-case scenario. The worst-case scenario here is a failure of your health. 

In India, with the increasing pollution, high-stress levels, hectic schedules and a very fast-paced lifestyle, it isn’t easy to maintain good health at all times. Although the average life expectancy has increased, the incidence of various infections and non-infectious illnesses in young people is on the rise. Diseases can be detrimental to your life goals in a big way. Not to mention, they also burn a big hole in your pocket! So what do we do to safeguard the most precious asset we have? Well, invest in health insurance, of course! Health insurance is the most obvious choice to protect both your health and your wallet in a way that is both efficient and effective! 

Investing in health insurance has numerous benefits, and here are 10 of them to convince you to purchase a suitable health insurance policy without delay: 

1. Health Insurance is a cost-effective investment

Health scares can happen at any age. Once you have an illness, whether chronic or mild, you will have a hard time buying health insurance. With the surging treatment costs in India today, if you suffer from a severe illness, hospital charges can almost leave you bankrupt. On the other hand, with an affordable health insurance policy, you will have all your future treatment costs covered. Moreover, if you consider the proportion of the premium amount compared to the treatment benefit you obtain, you will realize that you can receive double or triple the amount of money you have invested. Thus, health insurance is a cost-effective investment that helps you keep your future health secure.

2. All, or at least, most of your treatment costs are covered

In India, it is common for people not to visit the doctor or get regular health checkups because the issue is not “severe enough” to warrant a hospital visit. This often exacerbates the underlying issue and can potentially pose a more dangerous health risk in the future. With health insurance coverage, the pressure of “wasting money” is removed or lessened to a great extent. You can avail medical care for any health discrepancy without having to wait for it to get worse as all your expenses are covered. This helps you to keep your health up-to-the-mark without costing a bomb. 

3. You are aware of the best available facilities 

Having health insurance helps you have a better knowledge of the best medical facilities around you. This is because, when you are taken ill, the health insurance provider recommends hospitals for you based on pre-existing tie-ups with various hospitals and health care centers. So, health insurance can help relieve the tension of having to search for a good doctor when you are already under duress of being sick. You also get information about the best facilities and can help your friends and family if the need arises. Expanding your healthcare network due to health insurance is a great advantage, and it makes health insurance an excellent investment to tide over tough times in the coming years! 

4. Pre-existing diseases are covered

If you think that you should not get medical insurance because you have a pre-existing disease, then just think again! Most medical insurers in India do offer pre-existing illness coverage. Although you may be required to sit through a waiting period, during which coverage for your pre-existing disease will not be given, any other treatment costs during that period will be covered. Other than that, insurance providers also offer to waive off the waiting period if you pay a higher premium. So, health insurance is an excellent investment to make even if you suffer from a pre-existing condition because it provides you hefty benefits in the long run. 

5. Coverage during the recovery period

Most health insurance policies in India have ample coverage. Usually, policies cover a certain amount of pre-hospitalization and post-hospitalization costs as well. This includes diagnostic tests before hospitalization, medicine costs after hospitalization and any further consultations or follow-up visits. This is a great benefit that you derive from owning a health insurance policy because good quality post-hospitalization care is vital for your smooth recovery. Hence, health insurance is an excellent investment and having most of your costs covered ensures that you have a hassle-free recovery process and can get back on your feet in no time! 

6. Small or no waiting periods 

Traditional health insurance policies in India have no waiting periods or a short waiting period of about 30-90 days from the purchase of a policy. This is quite reasonable and is unlikely to cause long-term damages. The existence of a negligible waiting period in your health insurance policy means that you can avail claim benefits whenever you suffer from an illness and require medical attention. It also means that the potential benefit that you avail from this clause far exceeds any losses you might incur. All in all, investing in health insurance is an excellent bet because you can avail the coverage almost instantly! 

7. Low Rejection Rates 

In India, the rejection rates of health insurance claims are small. Simply put, it is unlikely that your health insurance provider will reject your treatment cost claim. Of course, this is said assuming that you have filed the claim following all protocols and you satisfy the standard requirements. This includes having supportive evidence, valid discharge summary, doctor’s reports etc. If the necessary claim conditions are met, the claim verification process is quick and easy and will most likely not be rejected. This makes health insurance coverage a good investment, as the returns are almost always assured. 

8. No Claim Bonus or NCB

Standard insurance policies offer a bonus every year that there has been no health insurance claim. This bonus builds up in the years and creates a hefty cumulative bonus amount. If you are young and choose to invest in a health insurance policy, you will undoubtedly benefit from a massive cumulative bonus in the years to come, as the odds of you making a health insurance claim in your youth are low. However, the point to be noted is that you lose your NCB amount once you make even one insurance claim. So, the financial benefit is available until you start making insurance claims. 

9. Tax Benefits 

When you invest in health insurance, you are eligible for tax benefits. This is under section 80D of the Income-tax Act, 1961. It says that you can claim a premium paid towards health insurance as an exemption from your total income. If you buy health insurance when you are in your heyday, you can enjoy these tax benefits for a longer time. This does make health insurance a good tax-saving choice, although that should never be the driving purpose.

10. Better and healthier financial future

Since you have invested in a health insurance policy, you do not need to save additional money for healthcare costs. This frees up a lot of money that you can now use to secure your financial future. You can do this by investing in the stock market, buying bonds, investing in mutual funds etc. You can also use the cash to fulfill other life goals like buying your dream house, going on vacations, donating to charities etc. Thus, investing in health insurance is indirectly a fantastic investment as it allows you to invest in other areas and reap multiple benefits! 

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