Top reasons why people should buy health insurance

• Premiums as low as Rs12/day for coverage of Rs.4 Lakhs*
• 10,000+ hospitals for cashless treatment
• Claim up to Rs. 55,000 deduction under section 80D**

In India, health insurance is a still a growing market. While health insurance is much more popular than life insurance, it has still not reached its full potential in the entire country. A study conducted during the 2015-16 period estimates that about 36 crore Indian lives are protected by health insurance covers. In terms of percentage value, this represents only 30% of the country’s population.

With the growing number of insurance companies in the market, the number of takers for health insurance is growing. However, a huge segment of the Indian population is yet to get coverage for themselves or their families. There are many reasons as to why health insurance penetration is still low in India. While the cost of health insurance is often cited as the reason, there may also be a host of other reasons why Indians skip buying health insurance.

Common reasons for not buying health insurance

Some of the common reasons for not buying health insurance can be listed as follows.

• Premium costs: Though health insurance is relatively cheap when compared to the benefits offered, it could be beyond the affordability of people in certain cases. Considering the range of plans available in the market, it is possible to find plans that fit within the budget of everyone.
• Lack of awareness: Sometimes, people who can afford health insurance also refrain from buying it. This happens mainly because of their lack of awareness about health insurance benefits.
• Lack of knowledge about medical inflation: Medical inflation in India is increasing at the rate of 15% to 20% every year. People who are not aware of the high medical costs generally refrain from buying health insurance.
• Overconfidence about health: People who follow a healthy lifestyle are often overconfident about their health. While the chances of getting sick are minimal when you are healthy, the chances of unexpected accidents and related medical expenses must not be overlooked.
• Dependence on employer health insurance: Most professionals working for corporate companies have employer-offered health insurance. However, these group policies are beyond one’s control. There is no possibility of customisation available with these types of policy covers.
• General misconceptions: There are many general misconceptions about health insurance regarding the benefits one can obtain. In certain cases, people mistakenly assume that this is not worth the money spent on premiums.
• Lack of trust: Lack of trust in insurance companies is one of the common reasons for not buying health insurance. Despite the significant growth in the recent years, health insurance companies are yet to gain universal trust in the Indian market.
• Inadequate coverage: In certain cases, people perceive that the coverage is inadequate in health insurance policies. Most health insurance companies offer different types of policies to satisfy the needs of their customers. Yet, these policies fall short of customers’ expectations in certain cases.

Reasons why health insurance is important

Health insurance is something that is extremely important irrespective of your age, income, or profession. Since there are no returns associated with health insurance policies, some people consider this to be an unnecessary expense and are apprehensive about spending money on it. The main reason to get a health cover is the financial security one can obtain from this. In a time of unpredictability, health insurance can prevent a scenario where your entire savings get depleted due to medical bills. There are plenty of reasons why you must have medical insurance at all cost.

• As mentioned earlier, medical expenses are increasing drastically all over the country. Most importantly, these expenses occur at the most unexpected of times. If you happen to face such a situation, it will cause a huge dent in your savings. If you want to protect your financial interests, health insurance is one of the options you must certainly consider.
• Pre and post hospitalisation expenses are also covered in almost all medical insurance policies. These expenses are often overlooked by people. Over a period of time, this could accumulate and turn into a huge expense.
• Health insurance offered by employers are always welcome. However, they may not be adequate for your specific needs. For instance, disease-specific covers and critical illness covers are not typically provided by employers. If you want to cover your entire family, it is better to look for a good family floater cover in the market.
• Some people wait for health insurance to become cheaper in order to take a cover. This may not be a great approach when it comes to health insurance. It is better to get a cover right away since there are policies available within the affordability of everyone. If you come across a better one, you always have the option of porting the insurance policy to the new service provider.
• Trust might be an issue back in the days when health insurance started in India. However, this is no longer a major issue. Most service providers are reputed financial service companies with good track record in the insurance field. It is also possible to narrow down companies with their incurred claim ratio and claim settlement ratio. Finding a reliable health insurance service provider is no longer a difficult affair.

Being optimistic is always good. However, this should not stop you from getting protection against various unexpected threats. By spending a little money on premiums every year, you can get protection for yourself and your entire family against various health hazards. This is exactly why you must consider investing in health insurance.