what is health insurance

Protecting your health and finances is crucial, and health insurance is a vital tool that can help with both. It provides financial assistance for medical expenses and can help you avoid the burden of high unexpected healthcare costs. In this blog, we’ll know the what is health insurance and why every individual should have this plans for family.

“It is health that is real wealth. And not pieces of gold and silver.” – Gandhi

List of contents

• What is health insurance?
• Importance of health insurance
• Benefits of health insurance
• Conclusion

What is health insurance?

It is a type of insurance that provides coverage for the cost of medical and surgical expenses. It works by paying for some or all of the costs of medical services and treatments, such as doctor visits, prescription medications, hospitalisation, diagnostic tests, and other medical procedures.

This insurance is typically purchased through an insurance company, which requires individuals to pay a monthly premium in exchange for coverage.

Importance of health insurance

A person’s most important asset is his or her body, as our earning potential is unlimited.

Investing in one’s health should be a person’s first priority. Life is more than just earning money. Without good health, financial success is meaningless. Good health is the foundation of a fulfilling life. Prioritising your health is crucial for a happy life; therefore, every individual must know this.

Having this insurance is vital for you and your family because medical costs can be extremely high, especially in private healthcare. if someone in the family gets hospitalized, it can be really expensive, especially if the person who usually earns money gets sick and needs to go to the hospital. It can result in a significant financial burden that can adversely impact your finances.

A single critical illness can push a poor or middle-class family to the brink of poverty. Medical bills and less money from being sick can be really tough for families who are already having a hard time with their money.

By paying a nominal annual premium, you can avoid this stress in times of medical emergencies. Comprehensive health insurance policies typically cover doctor’s consultation fees, diagnostic tests, hospitalisation costs, and even post-hospitalisation recovery expenses up to a certain limit.

Benefits of health insurance

There are several reasons why investing in health insurance is a wise decision. Here are some of the key benefits:

1. Financial protection: One of the most important benefits of this insurance is that it provides financial protection against the high costs of medical care. With this type of insurance, you can rest assured that if you or a family member needs medical treatment, you won’t have to bear the entire cost on your own.
2. Cashless hospitalisation: Many health insurance plans offer cashless hospitalisation, which means that you can receive medical care without having to pay anything upfront. The insurance company will settle the bill directly with the hospital, allowing you to focus on your health and recovery.
3. Access to high-quality care: With this, you can access high-quality medical care without having to worry about the cost. This can be especially important for complex or specialised treatments, which can be very expensive without insurance coverage.
4. Fixed premium cost: In some plans, this insurance offers a fixed premium for the entire policy duration, helping you budget healthcare expenses effectively. you know exactly what you will pay in premiums and what benefits you will receive in return. This allows you to plan for medical expenses and avoid unexpected financial burdens.
5. Peace of mind: Knowing that you and your family are protected in case of medical emergencies or illnesses can provide peace of mind and reduce stress and anxiety.
6. Tax benefit: By paying the premium towards your health insurance policy, you can claim deductions under Section 80D of Rs 25,000 annually for this insurance policy for yourself, which can reduce your tax liability and help you save money.

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Conclusion

Health insurance is an essential component of financial planning, and everyone should consider purchasing a this policy. In this blog we have cover what is health insurance with its importance and benefits. By having this insurance, individuals can lead a healthier and happier life, knowing that they and their loved ones are covered in times of need. It’s crucial to understand health insurance’s importance and make it a priority for a secure and healthy future.

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