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07 Aug, 2023 | Health Insurance

The Pros and Cons of Health Insurance: Everything You Need to Know

Team Beshak
By Team Beshak
We breathe insurance :)
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Picture this - You're living your best life, enjoying every moment, when suddenly, life throws you a curveball. You are facing a medical emergency, and the bills start piling up faster than you can say "healthcare costs." Sounds terrifying – correct? 

Whether you're a superhero juggling a million responsibilities or a master multitasker with a full plate, we all want to protect ourselves and our loved ones. In this article, we'll dive into health insurance, as its financial security provides a sense of reassurance. 

Understanding Health Insurance

Let's start with the basics. What exactly is health insurance? Health insurance is a type of insurance that provides financial protection against the high cost of medical care. It can help you pay for doctor's visits, hospital stays, surgery, and other medical expenses. In our nation, healthcare costs are rising steadily due to the increase in population, the rising cost of medical technology, and a gap between supply and demand when it comes to the quality of healthcare. For people to get high-quality healthcare at an affordable price, it makes sense to invest in health insurance. 

Now that we have a clear understanding let's explore the various types of health insurance available that can cater to different needs and circumstances.

Types of Health Insurance

👉 Individual Health Insurance: This is all about you, your health, and your sense of security. It covers medical expenses for individuals, offering personalized coverage. 

👉 Family Floater Health Insurance: With a family floater plan, you can cover your entire family under a single policy. One policy, multiple covered members

👉 Senior Citizen Health Insurance: With age, healthcare needs to change. Seniors require a protective shield against the unforeseen medical challenges that come with age.  Senior citizen health insurance caters to the elderly, covering age-related health issues. 

👉 Critical Illness Insurance: Nobody likes to think about it, but sometimes life throws unexpected challenges. This insurance plan kicks in when someone is diagnosed with serious illnesses that are listed in the policy document such as cancer or heart disease. 

👉 Group Health Insurance: This type covers a group of people, usually company employees, providing them with a safety net for medical expenses. Group Health Insurance is also provided by banks, fintech apps such as Phonepe, Paytm, and cab-hailing firms like Ola, Uber, etc. 

👉 Top-Up and Super Top-Up: For those who prefer an extra layer of security even with a comprehensive health insurance policy, the top-up and super top-up plans offer additional coverage at a nominal extra premium. These plans act as a backup to your existing coverage, providing extra financial protection in case of high medical expenses. 

👉 Maternity Insurance: Welcoming a new member into the family is a joyful experience, but it also comes with additional medical expenses. Maternity insurance helps ease financial payouts and takes care of any other unforeseen expenses.

👉 Multi-Individual Insurance: A superhero for joint families, multi-individual insurance is super convenient; it includes everyone in one policy under which each family or person can get personalized coverage. While this policy can help save some money, it is necessary, however, to check the details and ensure all family members in the policy are protected as per their needs.

Now that we've got the types covered let's take a closer look at the pros and cons of health insurance.

Pros of Health Insurance

1️⃣ Protects You from Financial Challenges
In the face of a medical emergency, health insurance plans protect you from potentially devastating financial consequences. Unexpected hospitalizations and long-term treatments can result in sky-high medical bills, but with health insurance, you can rest assured that at the very least - a significant portion of those expenses will be covered. 

2️⃣ Access to Preventive Care 
One of the lesser-known pros of health insurance is its coverage of preventive care services. Regular vaccinations, screenings, and check-ups are essential for maintaining good health and catching potential issues early on. By availing of these services covered under your health insurance plan, you can stay healthy and prevent more serious health problems. 

3️⃣ Savings on Prescription Drugs and OPD Expenses 
Health insurance plans often offer coverage for prescription medications, relieving the burden of high drug costs. This provision can significantly benefit Individuals with chronic conditions, as it helps reduce out-of-pocket expenses. Moreover, some plans may cover outpatient department (OPD) expenses, making routine medical visits more affordable. 

4️⃣ Security and Serenity 
The sense of comfort and reassurance that comes with health insurance cannot be overstated. Having a reliable support system in place that is ready to cover unforeseen medical expenses allows one to get on confidently with life. 

5️⃣ Hassle-Free Medical Care
One of the most convenient features of health insurance is cashless hospitalization. This facility ensures that you receive timely medical care with minimal out-of-pocket expenses. The insurance provider settles the bills directly with the hospital, saving you from the hassle of billing and arranging funds during stressful times. 

6️⃣ Tax Benefits 
Did you know that health insurance premiums can come with tax benefits? Under Section 80D of the Income Tax Act, you can claim deductions on the premium paid towards your health insurance policy. This helps reduce your overall tax liability and provides much-needed healthcare coverage. 

8️⃣ Additional Benefits and Coverage 
To enhance your coverage, healthcare insurance plans often come with various additional benefits. These may include coverage for critical illnesses, maternity expenses, wellness programs, second opinions, alternative treatments, and ambulance services. You can customize your plan to suit your specific needs by exploring these added benefits. 

Also Read: How To Find The Best Health Insurance Plan?

Cons of Health Insurance

1️⃣ Cost of Premiums 
One of the primary concerns with health insurance is the cost of premiums. Premiums can increase periodically depending on your location, fitness level, medical history, types of plans, and claims history. Evaluating the premium amounts alongside the coverage benefits is crucial to ensure you get the best value for your hard-earned money. 

2️⃣ Limitations and Exclusions 
Health insurance policies often come with certain limitations and exclusions. It's important to thoroughly understand your policy's terms, conditions, and coverage restrictions. Some treatments, procedures, or services may not be covered, leaving you responsible for the expenses. Being aware of these limitations can help you plan and budget accordingly. 

 3️⃣ Waiting Periods and Pre-existing Conditions 
Health insurance policies may impose waiting periods before coverage becomes effective for certain conditions or treatments. This means the expenses may not be covered if you require immediate medical attention for an illness during the waiting period. Additionally, individuals with pre-existing conditions may face challenges obtaining coverage or be subject to higher premiums. It's crucial to carefully review policy details of health insurance plan to understand how waiting periods and pre-existing conditions may impact your coverage

 4️⃣ Understanding Policy Terms and Conditions 
Health insurance policies can sometimes be complex, with technical jargon and legal language. It's important to take the time to read and comprehend the terms and conditions of your policy. This ensures you know any specific requirements, exclusions, or limitations that may affect your coverage. 

5️⃣ Balancing Costs and Benefits 
While health insurance provides financial protection and access to healthcare services, you must assess whether the premiums and potential out-of-pocket expenses align with your budget and healthcare needs. 

Is Health Insurance Worth the Investment?

Absolutely! Health insurance is not just an expense; it's a valuable investment in your physical and financial well-being. As you age, the importance of having health insurance becomes increasingly evident. It acts as a lifeline protecting one from medical emergencies' potentially devastating financial impact and rising healthcare costs. 

If you're still contemplating whether to buy health insurance, consider this: it provides a layer of financial protection against unexpected medical expenses that can easily drain your savings. As healthcare costs continue to rise, insurance coverage can help ease the burden and ensure you have access to the necessary medical care when you need it most. 

To make the most informed decision when selecting a health insurance plan, consider the following: 

1. Compare different plans to find the one that suits your needs and budget.  

2. Consider factors such as premium costs, coverage benefits, and network hospitals. 

3. Carefully evaluate your healthcare needs and preferences before purchasing a plan.  

4. Remember to read the terms and conditions of the policy thoroughly to understand any limitations, exclusions, or waiting periods. 

To Sum Up

Health insurance is of utmost importance in modern times. When finding the best health insurance plan for your needs, is a trusted platform to assist you. We offer unbiased information, empowering you to choose the plan that aligns with your requirements and budget. Additionally, we, at Beshak, provides expert advisors available to guide you and help you navigate the complexities of health insurance, ensuring you find the best plan tailored to your specific needs.  

 So, don't hesitate to leverage the resources and expertise Beshak offers to find the perfect health insurance plan that suits you and your loved ones. 

Key takeaways
  1. Health insurance ensures financial protection against the high cost of healthcare. It can help you pay for doctor's visits, hospitalisation, surgery, etc.
  2. There are various types of health insurance like - individual health insurance, family floaters, senior citizen health insurance, critical illness insurance, group health insurance, and more.
  3. Health insurance is as wise choice because it safeguards you from the ever-rising costs of medical care. It gives you access to preventive care, covers prescription drugs and OPD costs, facilitates cashless treatments, and offers tax benefits.
  4. In a nutshell, it ensures peace of mind. It can also come with extra benefits like maternity insurance, coverage for alternative treatments, etc.
  5. But, health insurance has some drawbacks too. The premiums can be high, there can be exclusions and coverage restrictions, waiting periods, complex T&Cs.
  6. If you look at the big picture, health insurance is totally worth it. It saves you from the financial consequences of both planned and unplanned treatments.
  7. To get the best plan, compare the various health insurance products sold by different insurers. Look at the premiums, coverages, and network hospitals.
  8. Understand your own needs and the terms of the health insurance plan to know what you want and what you'll get.
Team Beshak
Written by,
Team Beshak, We breathe insurance :)

We are a group of young members of the Beshak community. We come together to brainstorm, write relevant and useful content for people (just like us) who want to figure insurance on their own. If you too want to share inputs/write for us - send us a "hey" to

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