People often find health insurance too complicated and hence, prefer having a healthcare fund instead of investing in health insurance. Or - they might think they’ll never have a need to make a claim - and hence all their ‘investment’ goes to waste. But, this cannot just be an improper way of looking at health insurance, it could even be dangerous - financially speaking.

Health insurance is a promise to pay for your hospitalisation expenses, when the time comes - and to get this assurance, you will need to pay a regular premium to the insurer. Based on the terms and conditions in your policy, the sum insured you’ve chosen, and the expenses incurred at the hospital, your claim is assessed by the insurance company and the approved amount is paid out. This can be for hospitalisations that are needed for an illness, an infection, or even an accident. 

Here are 5 reasons why it is important to have a health insurance policy

1- Medical costs are rising by the day

Medical costs keep on rising as and when medical technology improves and diseases increase. Now, with the pandemic coming into the picture last year, the medical costs have increased a lot. The only thing that can help us afford the rising medical costs is a health insurance policy. 

2- Medical advancements will ensure that you live longer, but with diseases/ conditions that need expensive long-term treatments

It has become possible to cure diseases that were once considered incurable, thanks to the advancement of medical technology. But the cost of curing these diseases is so high that it is almost impossible for a middle-class person to afford them. You can’t predict a future illness and there are possibilities of you getting a life-threatening disease in the future. Health insurance is the only way that will ensure financial security in such situations.

3- A healthcare fund will not be enough 

A lot of people, who don't have a health insurance policy, depend on their healthcare fund when it comes to dealing with health emergencies. A fund could be useful, but should not be a replacement for health insurance. Because the treatment and surgery costs in today’s time could cost a fortune and a healthcare fund will not be enough to deal with all the medical expenses.

4- You might not get health insurance later (as you grow older/ get a disease)

Every insurer has defined specific criteria for undergoing medical tests before issuing a health insurance policy. There are some insurers who’ll ask you to mandatorily undergo a medical checkup if your age is 45 years or above (this may vary from insurer to insurer). The results of such medical tests will decide whether you’ll get health insurance or not. 

There is a higher risk of you being exposed to medical issues at this age and hence, higher chances that you won't get a health insurance policy. And even if you get one, you will have to pay a lot more for a similar cover compared to what you will pay at a younger age 

5- Tax benefits

Payments made towards health insurance premiums are eligible for tax deductions under Section 80D of the Income Tax Act. You can get deductions for the health insurance premium paid for yourself, your spouse, your dependent children, and your parents. While there are many who purchase health insurance just to avail of tax benefits, it should not be the only reason for you to buy health insurance - in our opinion.

So, some uncertain incidents can take place even if you are too careful and looking at the rising medical costs, it could cost you a fortune in medical bills. If you’re not covered under health insurance, it could exhaust all your savings and your health care fund as well. Hence, having a health insurance policy is a must. 

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