What is health insurance & why is it important for you and your family

Medical issues and illnesses may strike unannounced, and you need to be ready for them. Along with a healthy body and immune system, you must be prepared financially too. A health insurance policy is of great help whenever you fall ill. Not only does it allow you peace of mind, but it will also help you get access to the best medical facilities and doctors when you are ill. Let us look at what is meant by health insurance and the importance of health insurance.

What is health insurance?

A health insurance policy covers the expenses of your medical treatment when you fall ill. These expenses may include the cost of hospitalisation, medicines, doctor consultations, room charges, ambulance charges and post-hospitalisation care, among others. Health insurance also covers surgeries and one-day procedures that do not require hospitalisation.

You can opt for health insurance after taking into account your medical history, your financial condition and your dependents. The premiums are decided after considering your age, fitness and the risks. 

Why is health insurance important?

We give you a few reasons why you should consider purchasing a health insurance

1.To protect your savings​ - This is perhaps the most important reason why you should opt for medical insurance. Not many people set aside a fund for medical expenses. If you do not have a medical insurance policy, whenever you or any of your dependents fall ill, you will turn towards your savings to fund the treatment. This can affect your financial health, and affect your savings.

2. To protect you against the increasing medical costs​ - This is perhaps the most important reason why you should opt for medical insurance. Not many people set aside a fund for medical expenses. If you do not have a medical insurance policy, whenever you or any of your dependents fall ill, you will turn towards your savings to fund the treatment. This can affect your financial health, and affect your savings.

3. To protect you against the increasing medical costs​ - With market inflation, the cost of medical treatment in the country is also increasing. The expenses for treating critical illnesses like cancer, heart diseases, and kidney ailments are enormous. You need to prepare for such expenses. Health insurance can help you avail reimbursement or cashless treatment at any of the hospitals, thus protecting you against the increasing medical costs.

4. To gain access to quality health care - Quality health care is very important when you are sick. In order to get well you need expert care, state-of-the-art diagnostics and effective medicine. However, all these come with a price tag. A health insurance policy brings quality health care well within reach regardless of your financial condition.

5. To help protect your interests and life goals -You save to fulfil your life goals, both short term and long term. However, if you do not have a health insurance policy and you fall ill, you will have to dive into your savings to pay for all the medical expenses. This can erode your savings and affect the fulfilment of these goals. A health insurance policy can help pay for all these expenses and thus keep your savings intact. Therefore, it helps protect your interests and life goals.

As you can see, the importance of health insurance cannot be stressed enough for the well-being of you and your family. However, before you purchase a health insurance policy, check the features, the terms and conditions, and the additional charges. Also, check whether it is accepted at hospitals near you and whether the premiums for the policy are affordable.