Are also wondering whether health insurance is worth it. Okay, let us answer this from a basic concept question for you. Insurance is a money-related safety guard that individuals and associations put assets into to shield and protect themselves from unforeseen risks and setbacks. Whether it is about your prosperity, life, property, pets, business, travel, or various kinds of Insurance, the primary query remains - Is health insurance really worth it?
In this blog passage, we will analyze the various aspects of Insurance to help you decide if health insurance is worth it or not.
What is Insurance Security?
Insurance is a risk management tool that provides financial protection against unwanted circumstances and situations. It is a give-and-take type of thing. The individuals, who will be later called the policyholders, pay a certain sum of money, called premiums, to the Insurance company, in exchange for which the Insurance company promises financial support for the beneficiaries in their time of need.
There are types of insurance, ranging from human-associated things like life and health insurance to materialistic things like property and casualty insurance to insurance for interests such as pet and travel insurance. Each type of insurance serves a unique purpose, addressing different aspects of life.
- Life insurance
Life insurance is designed to provide financial security to your family and the people who financially depend on you, who are known as the beneficiaries, in the unfortunate event of your untimely demise. The prime purpose of life insurance is to provide a replacement for the continuous income flow. It helps ensure that your loved ones and family can maintain their standard of living and fulfill their basic needs with your death benefit.
- Property Insurance
Our property is an outcome of our continuous efforts and savings. So, whether it is your home or business-based property, unanticipated misfortunate events like fires, electrical disorders, natural calamities, or theft can result in heavy financial losses. Property insurance provides proper coverage to mitigate risks, which helps you to recover or replace your assets without bearing the entire financial burden.
- Health Insurance
Medical expenses can be tiring to even look at, and unexpected illnesses or accidents can drain your savings all in one go. With the rising inflation, even expenses like regular medical checkups are too much to bear. Health insurance comes into play by supporting us financially. Health insurance covers medical expenses, hospitalization, and other related costs.
Now, if we specifically centralize our attention to Health Insurance, the question arises,“ Is Health Insurance worth it?”. Let us find the answer to this question by analyzing and estimating health insurance's significance, usefulness, and whether the financial commitment is justified or not.
Is Health Insurance worth it?
The ever-increasing medical care expenses highlight the importance of having a good health care Insurance policy. From regular check-ups to unanticipated health-related crises, accidents to chronic illnesses, and essential checkups to surgeries, Insurance inclusion can help mitigate the weight of extravagant hospital expenses.
Besides, Health Insurance provides a wise and intelligent way to deal with medical services. Insurance contracts and policies frequently cover routine check-ups and preventive measures, empowering people to focus on their prosperity through early identification and safeguarding care.
Are There Any Other Benefits Aside from Financial stability?
So let us see some other benefits that justify the question: is health insurance really worth it or not:
- Mental strength and peace
Health insurance acts as a safeguard for our health not only physically but also in a sense of mental peace. The thought of hefty medical costs can be a significant source of stress and anxiety to the human mind. But if you have health insurance, you are satisfied and relaxed mentally. It provides mental strength when you know that you and your family will be cared for medically without compromising due to financial loads.
The tax benefits of health insurance are as follows:
Under Section 80D of the Income Tax Act, 1961, having health insurance gives you a tax deduction amount of up to ₹25,000 per year for individuals under 60. This tax deduction extends to Up to ₹50,000 per year for senior citizens (aged 60 and above).
This tax deduction applies to premiums paid for your health insurance, spouse's health insurance, dependent children's health insurance, and dependent parents' health insurance (up to an additional limit).
- Getting good Healthcare
When you are insured by health insurance, it is much easier to see a doctor when needed. Many times, it occurs that due to financial problems, we keep delaying going to the doctor, which will result in the illness getting worse with time. Also, sometimes, the insurance companies have some networks of good healthcare specialists.
- Protection for family
Health Insurance ensures protection and safety for the whole family. Family healthcare is very significant for everyone. Be it a child, an old person, or even a person at a young age, everyone is vulnerable to health problems. Family Health Insurance ensures that the whole family receives the best possible Medicare without heavy financial burden.
- Wellness Programs membership
Health insurance plans often incorporate benefits like wellness programs and discounts on health-related services. These new initiatives encourage policyholders to adopt better and healthier lifestyles. It sometimes provides gym memberships to nutrition counseling. Giving these perks contributes to a complete approach to better health.
These factors are of immense help in leading a mentally and physically strong life and are the best answer to the query of many people, “ Is Health Insurance worth it?”.
Government-owned Health Insurance Schemes
The government is also trying to promote health insurance, but the difference between primary and government-owned health insurance is that the government focuses on the lower-income groups. The maximum amount insured is also lesser.
Some of the government based Health Insurance schemes are:-
- Ayushman Bharat Yojana
Ayushman Bharat Yojana is a public scheme which falls under the Ministry of Health and Family Welfare, Government of India. The PMJAY scheme was launched to provide free healthcare services to the lower income groups. The PMJAY scheme provides health coverage of Rs 5 Lakh.
- Pradhan Mantri Suraksha Bima Yojana
Pradhan Mantri Suraksha Bima Yojana was launched to provide accident insurance coverage to the country's people. It gives Rs 2 lakh for total disability and death cover and Rs 1 lakh for partial disability.
- Aam Aadmi Bima Yojana (AABY)
Aam Aadmi Bima Yojana (AABY) is one of the latest national health insurance schemes established in 2007. Age limit- 18-59 yrs. AABY insurance scheme is for the people in the country's rural areas.
- Central Government Health Scheme (CGHS)
This scheme was initiated in 1954. It provides comprehensive healthcare facilities for central government officials and pensioners residing in big cities of India.
- Janshree Bima Yojana
Janshree Bima Yojana is designed for individuals in the poor category who are 18-59 years old.
The government schemes are specifically tailored for the poor people. So, they are worth it for the poor people.
Is private health insurance worth it? Yes, they are, but the coverage depends on the insurance company you are purchasing from. Some of the privately owned health Insurance companies are:
- Max Bupa Health Insurance
- Religare Health Insurance (Now Care Health Insurance)
- Star Health and Allied Insurance
- ICICI Lombard General Insurance
- ManipalCigna Health Insurance
- HDFC ERGO Health Insurance
The benefits these health insurance companies provide are worth every penny. The people are well off financially and can afford privately owned health insurance. Understanding these benefits will let you know that private insurance is worth buying.
Conclusion
In conclusion, health insurance is not merely a financial tool for safeguarding ourselves and our family’s health but a commitment to prioritizing your well-being. The advantages of having health insurance are not only monetary considerations, routine checkups, access to quality healthcare, preventative measures, and peace of mind.
