Why is health insurance important?

The cost of health care is rising at an alarming rate around the world. India has the highest medical inflation rate. The cost of treating new diseases is increasing as they emerge. A lack of advance planning can make a big hole in an individual’s pocket when it comes to health care costs.

The unexpected can happen in the case of a medical emergency. A health insurance plan will ensure that you have access to the best medical facilities without putting you at financial risk. There is no longer an option but a compulsion to purchase health insurance. Health insurance is available to less than 15% of the Indian population, or 1.1 billion people.

WHO statistics show that 31% and 47% of the hospital admissions in urban and rural India are either financed by loans or by selling assets. The statistics also reveal that 70% of Indians spend their entire income on healthcare, and 3.2% of Indians are below the poverty line because of medical expenses.

As a result of health insurance, we have had a lot of relief. Health insurance increases access to quality healthcare, especially private healthcare where costs remain a barrier. It will ensure that you receive appropriate treatment as soon as possible. You can avail of the best treatment at any network of hospitals, regardless of your financial capability, as long as the terms and conditions of the policy are met.

We pay attention to it, but do we do enough? Do we get our health insurance done when we are young and healthy? Do we have enough health cover or are we under insured?

Salaried employees are covered under the company’s group health plan. But is sufficient? The answer is No.

  1. Many times the company’s group health insurance sum assured is not sufficient. The medical cost of treating major life-threatening diseases is huge so there may be a shortfall in health insurance sum assured and you have to incur the extra amount required.

  2. If you lose your job, your group health cover is ceased. You will not be a part of that. In this scenario, you and your family are out of health insurance coverage.

  3. At the time of switching a job, you may be not covered for health until you get registered under the new employer’s group health plan or until your transition period.

  4. Many times as per the company’s policy, only 80% of the medical bill is reimbursed. Rest bill payment you have to incur. Thus relying only on the company’s health insurance can make a hole on your savings.

  5. Extra health insurance can serve you as a cushion in above-mentioned situations.

  6. One can buy a standalone health policy or family floater as a base plan added to the company’s health coverage.

  7. The additional top-up plan can be purchased at a very reasonable rate. This helps to provide you huge health cover at a low premium. This way you can save the premium outgo and invest the saved amount to create wealth.

So it is always advisable to have our own health insurance coverage even if you have health coverage from your company !!!

How do I choose a good health insurance plan?

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