Top Reasons to Buy a Health Insurance in India

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Most health insurance plans work by the insured paying a monthly or yearly premium to the insurance company in exchange for coverage. When the insured needs medical care, the insurance company covers the expenses to a certain amount, depending on the type of expense, and the policy.

Importance of Health Insurance

The significance of health insurance plans cannot be overstated. They serve as a safety net, ensuring that you do not have to bear the entire burden of medical expenses out of your pocket. With the increasing prevalence of lifestyle diseases and rising healthcare costs, having health insurance is essential to protect one's savings from being depleted due to unforeseen medical expenses. Moreover, it encourages individuals to seek timely medical care without worrying about the financial implications, thus promoting overall well-being.

Types of health insurance

From an all-inclusive health policy for families to health insurance plans for senior citizens, there are many types of health insurance policies, catering to different requirements. Some of the major types are:

Individual Health Insurance Policy

As opposed to health policy for family, this type of policy provides coverage to an individual against medical expenses incurred due to illness or injury. Although it offers flexibility in choosing coverage options and sum insured based on individual requirements, the premium is generally paid on the basis of age, pre-existing diseases, and past medical records

Family Health Insurance Policy

Also known as a family floater health insurance policy, this type of policy extends coverage to the entire family under a single plan. It provides financial protection to the insured and their family members against medical expenses, including hospitalization and surgeries. A family under this policy is defined as the individual, their spouse and their children only. The premium paid covers all the family members, and is calculated based on the age of the eldest member of the family.

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Group Insurance Policies

Group health insurance policies are offered by employers or organisations to provide coverage to their employees or members. They work like individual health insurance plans, with the major difference being that the employers pay the premium. This type of policy varies in terms of coverage and benefits depending on the employer or organisation offering the policy.

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Critical Illness Insurance

Critical illness insurance provides coverage for specific critical illnesses, the list of which is shared at the time of buying the policy. In the event of diagnosis of a covered critical illness, the insured receives a lump sum amount to cover medical expenses and other financial obligations. Critical illness insurance usually complements regular health insurance by offering additional financial protection against life-threatening illnesses.

Senior Citizen Health Insurance

As individuals age, their healthcare needs increase, making it imperative to have adequate health insurance coverage. Thus, this type of health insurance works best for elderly people who may be more prone to diseases with age. Senior citizen health insurance plans are specifically designed to cater to the healthcare needs of aged individuals. The premium paid is also generally higher.

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Top Reasons to Buy Health Insurance in India

Here are 6 reasons why you should buy health insurance in India:

Rising Medical Expenses

One of the primary reasons to buy health insurance in India is the exponential rise in medical costs. Hospitalization expenses, diagnostic tests, surgeries, and medication costs have surged over the years, making it challenging for individuals to afford quality healthcare. Hence, health insurance plans help immensely to overcome the cost of inflation.

Financial Coverage

Health insurance offers financial protection against unexpected medical emergencies. By paying a nominal premium, you are able to avail substantial coverage for hospitalization, treatments, surgeries, and other medical expenses, reducing the financial burden on you and your family members.

Tax Exemption

Investing in health insurance plans offers tax benefits under Section 80D of the Income Tax Act of 1961. You can claim deductions on the premium paid for yourself and your spouse, children, and parents. This helps in reducing the taxable income and saving on taxes.

Fall Back Option

Health insurance serves as a crucial fall back option where you do not have to deplete your life savings on expensive medical bills. It provides peace of mind knowing that one's health and financial well-being are secure even in the face of unexpected medical conditions or accidents.

Wide Coverage

The best health insurance policies in India offer extensive coverage, including hospitalization expenses, surgery costs, day-care procedures, and more. Many comprehensive plans also cover critical illnesses, maternity expenses, and other treatments, ensuring complete protection for you and your family.

Flexible and Affordable Plans

It is generally more affordable to buy an insurance plan in your youth as you can get a plan at a lower cost. The premium increases as you get older. As a young individual, you can choose from basic individual plans to specialized coverage like critical illness insurance plans at a lower premium. Most health insurance companies offer a wide range of plans tailored to suit the diverse needs and budgets of individuals and families.

In India, where healthcare costs are rising steadily, having a robust health insurance plan is indispensable. Whether it's a day-care procedure, a routine surgery or a medical emergency, having a health insurance plan that works best for your needs can offer you financial security and peace of mind.

Muthoot Finance, a pioneer in providing a wide range of financial services to people, offers comprehensive support to all customers in choosing the best health insurance plan for their needs. Through our wholly owned subsidiary, Muthoot Insurance Brokers, we help our customers to evaluate their needs, research and select a health insurance policy that is ideal for them.