Decoding Insurance

3 Reasons why you should Invest in Health Insurance Today

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You might have heard people saying ‘Health is wealth’ but what does it really mean? Ideally, this phrase is used to convey that you cannot do anything if you are not in good health. You cannot work, live a happy life, do your favorite things or enjoy time with your loved ones if not medically fit. But does health really bring wealth? Well, somehow yes! Not precisely but if you are in good health you’ll save a lot on your medical bills. However, apart from being in a good state of health, if you're investing your money in a wealth saving tool like Health Insurance you can end up saving a lot on your cost of healthcare bills. This hard-earned money of yours can be preserved for your other future financial requirements. 

Why do you need Health Insurance?

We have all heard people say, "Buy health insurance, it will benefit you in the long run."  We all have witnessed the chaotic times of the pandemic. This outburst has made us realize the uncertainness of life. People who had health insurance during that period were safe from any financial shakeout as they didn’t have to pay anything from their pockets. Health insurance prevents the burden of such unexpected health-related expenses. With this situation in the last two years, people have also understood the importance of health insurance. 

Also, the lifestyle we are leading today has made us more prone to health problems that can lead to serious illness in the future and with the rising cost of healthcare facilities in India these expenses can burn a hole in our pockets. For instance, if you need treatment or surgeries related to any heart disease or cancer treatments the entire treatment will cost you between Rs. 10 lakh- Rs. 30 lakh which entirely depends on the seriousness and stage of the disease. As we age, we need to cope with other health conditions as well which can demand unexpected attention and treatment at any time. So, to avoid all this chaos of unexpected expenses you should get a comprehensive health insurance plan to avoid financial crises in case of any medical emergencies and to keep yourself and your loved ones safe. 

Be Financially Secure with a Good Health Plan

As per IRDAI’s annual report, insurance penetration in India was 3.76 per cent in 2019-20. When families are uninsured or even underinsured,  any medical emergencies  can cost them a fortune. So, in order to avoid such situations and spend most of your income on medicines and healthcare a personal health cover is a must. 

Most Indian middle class families don’t have emergency funds which further ruins their savings in case of any medical emergencies. Also, the insurance plan provided by the employer does not suffice as it entirely depends on the budget and the number of employees they provide health insurance to. Such insurances provided by the employers are usually basic coverage and you need good high coverage insurance to be secure from any financial and health risks. 
Take Health Insurance at an Early Age

‘Early bird takes the worm’ and this is applicable in the case of health insurance too. If you take insurance at an early age when you are healthy, at the lowest risk of falling ill and less vulnerable to major health issues you can avail plans at low rates with numerous benefits which continue in the future. You can be offered extensive coverage with top-up benefits and your pre-existing waiting period will be over while you are young and fit, this will prove useful if you have any health problems later in life.

Save on Income tax with Health Insurance Plans

Having health insurance can safeguard your wealth. According to section 80(D) of the Income-tax if you are paying premiums for your health insurance your taxable income is exempted from any deductions. This is entirely based on the age and number of health policies you are paying a premium for, it can be for yourself, your spouse, kids or your parents. You, your spouse, and any dependent children can claim a tax deduction of up to Rs. 25,000 every financial year under this provision. If the parents are not senior citizens, the medical insurance premium paid for them is eligible for an extra deduction of Rs 25,000. This limit rises to Rs. 50,000 if one or both of your parents are senior citizens. Basically, purchasing health insurance coverage for yourself and your parents can result in a tax deduction of up to Rs. 75,000. This way you can save your income and invest your money in your long-term goals. 

So, don’t wait until old age to get health insurance as getting a premium at an early age has its own benefits and will help you gain financial freedom at the same time. You don’t have to worry about surprising medical emergencies in your family if you have an adequate health insurance plan and you can secure your financial future with this investment.

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