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Reasons Why Buying Health Insurance in 2022 is Crucial

By Vikas Chandra Das
03 October 2022, 11:43 AM

Uncertainties and health hazards are inevitable. While you cannot predict an ailment, with health insurance, you certainly can prepare yourself financially. If you are insured, money will be the last thing stopping you from getting medical treatment when an unforeseen health risk arises, as you will have the financial support. Besides, the rising healthcare costs in the country make it imperative to have a policy — especially during the pandemic. Here are 10 reasons to get a health insurance policy pronto.  

1. For your Personal and Financial Health

Health insurance covers the policyholder's medical expenses for an illness or a mishap. It's crucial for your health as you can get the medical treatment you need and for your financial health, as you can avoid unexpected expenditures that will usurp your savings and upset other goals and dreams you or your loved ones might have. Furthermore, a cashless facility can pay the healthcare provider directly if you are cash-strapped. 

2. A Wide Scope of Coverage

One of the main advantages of purchasing a health insurance policy is the extensive financial protection you get for critical illnesses and conditions, disability daycare, operations, and outpatient department (OPD) charges. Most plans cover more than just hospital expenses. Subject to the pre-specified maximum amount and duration, most health insurance policies typically include reimbursement for both pre and post-hospitalization costs — ambulance, transportation, hospital stay, medical charges, surgery costs, recovery-related postoperative care costs, and so on. 

3. Covers Pre-existing Diseases

Pre-existing diseases are underlying asymptomatic conditions that can exacerbate while remaining dormant for an extended period. Following an initial medical examination, health insurance plans these days provide coverage against these types of illnesses as well. If the patient cannot seek treatment for a condition, they can avail of this facility.

4. Benefits Offered by Riders

The availability of riders on top of your primary policy is another critical factor that will significantly benefit you. At the time of purchase and renewal, options are typically available to make the entire plan comprehensive and tailored.

The top-up facility is a cost-effective alternative to buying a new policy or expanding the primary policy's insured amount to improve your current health coverage.

5. Lifetime Protection

Today's health insurance policies include a lifetime renewability option that lets you keep your policy in force even after retirement for a reasonable price, providing lifetime protection for you and your loved ones in any medical emergency.

6. Financial Security for your Family

No matter how much money you have saved, paying for the cost of therapy, necessary equipment, and prescribed medication on a fixed salary or if you are self-employed can be challenging. Insurance policies provide a pay-out option that assures your family's financial security in a medical emergency, whether you have a critical illness or a disabling condition.

7. A Backup during Inflation

Inflation in India's healthcare sector was a staggering 14%  for the fiscal year 2020–21*. Although savings instruments offer attractive interest rates, they are insufficient to cover the price of medical care when you factor in inflation. Health insurance is a practical instrument that can assist you in covering potential medical expenses.

8. Wide Network of Hospitals

Reputable health insurance companies have a vast network of hospitals providing cashless claim facilities. If your policy is eligible at one of these hospitals, it will eliminate the need for you to foot the tab personally. To facilitate quick and timely treatment, many health insurers now have a comprehensive list of network hospitals offering cashless hospitalisation benefits. Therefore, it is essential that you compare the health insurance advantages, reach, procedure, claim settlement ratio, etc., of various insurers before choosing one.

9. Tax Benefits

Health insurance provides financial assistance when you need it and helps you save. Section 80D allows you to save up to INR 25,000 in tax from your insurance premium. You can deduct the cost of your and your spouse's insurance, enabling you to lower your overall tax obligation.

Read more - Is Buying Health Insurance Really Worth It


Our health changes as we age and is no longer limited to occasional colds and coughs. Chronic diseases such as diabetes, heart ailments, and renal ailments are rampant due to our lifestyle. Health insurance coverage will effectively protect you against medical expenses. You can choose from an array of providers and plans and even get coverage for pre-existing diseases and pre and post-hospitalisation requirements.  

Read more - Benefits of Health Insurance in India


1. Is health insurance worth it in India?

With the expense of high-quality healthcare soaring, a brief hospital stay at a private medical facility is sufficient to affect your finances severely. Illnesses strike without warning or notice. That apart, it is impossible to forecast the amount of your future medical or hospitalisation expenses; this is when a good health insurance policy helps.

2. I need to purchase health insurance for my parents. What is the best policy to buy in India?

Honestly, there's no such thing as the 'best plan.' It depends on the coverage you require, your parents' ages, your health history, and so on. We advise researching what to look for when purchasing health insurance and comparing the best providers.

3. What are some factors that I need to consider before buying health insurance?

Considerations while selecting health insurance include:

  • The claim ratio needs to be greater than 90%.
  • It should provide coverage for diseases you have a higher risk of contracting because of family history or work hazards.
  • Financial stability of the insurance provider (for the long run)
  • Attractive no-claim bonuses.
  • Besides, ensure that the network list includes the most critical care hospitals.

4. My employer provides me with health insurance. Should I buy another one?

Companies provide 'group' health insurance for staff members of other businesses. It can be compared with a family floater health insurance when thousands of people are in your work family. Owning your health insurance, whether personal or family-based, is always preferable. Otherwise, you risk losing the coverage if you change jobs or stop working, in which case the clock on pre-existing conditions will have to start anew.

5. Can I skip disclosing my existing ailments to the insurer?

When submitting the proposal form, you must mention any pre-existing health problems. Agents often ask you to sign the form and offer to fill it up later. They often leave out the existing conditions, even if they are aware that doing so will make it challenging to get the proposal approved by the underwriters; this can result in the rejection of health insurance claims and even the policy’s cancellation.

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