Why You Should Not Neglect Medical Insurance?

We are all aware of the saying ‘Health is wealth’. Some of us follow and maintain healthy lifestyle habits. But remember, even after taking all necessary precautions, we are at the risk of falling ill or meeting with an accident – we never know when a medical catastrophe arises. We should always be prepared to deal with the significant negative effects on finances, should a medical catastrophe occur. Medical insurance with proper coverage helps you at this crucial time – provides access to healthcare without putting the financial strain.

There are many people in India today who still are not aware of its importance. However, it’s our responsibility to understand its significance, be alert upfront, and avail its benefits whenever required (in case of unexpected events).

Hospitalization due to sickness or an accidental injury can incur huge medical expenses. Medical treatment has become costly these days – serious health disorders are very much expensive to treat. Healthcare costs have gone through the roof in our country. This scenario is really problematic for people from middle income group. However, health insurance plans are a sort of aid for such individuals as they cover hospitalization and medical bills.

People in India neglect medical insurance
Many people in India think that health insurance should be purchased ‘only when you think you will be hospitalized’. Some others realize its importance when trapped in one such problems of hospitalization. Some even consider that these plans are not beneficial for them in any ways. This shows both ignorance as well as negligence of individuals on availing medical insurance.

There are many people who save money to purchase fancy phones, vehicles, etc. but very few who set aside a small portion (around Rs.5,000 for Rs. 5 lakh cover for a person between 25 to 35 years) of their salary for their medical emergencies. Accident insurance is even cheaper (an individual can get Rs. 10 lakh cover by paying less than Rs. 100 per month). It is the cheapest form of insurance available.

Health insurance offers many benefits

• Firstly, it helps you during catastrophic events such as accidents or injuries, and serious effects of illnesses or lifestyle diseases
• Secondly, it protects you from overcharging by hospitals. Hence, it avoids your worries of the financial burden with respect to huge bills for treatments and hospital charges
• Medical insurance provides certain tax benefits that ensure you significant savings
• Medical insurance serves well as a psychological aid – makes you free from stress and help to cope with the medical emergency.
• There is no need for you to run around friends’ and relatives’ places to arrange money – you will not only lose dignity, will also not have to pay interest on the borrowed money!
• You will not be in a position where you have only one option – pray, do nothing

Neglecting to take medical insurance is like gambling with savings or running into big debts. It will simply erode your savings. You may be assuming that you are saving money by not going for medical insurance; remember a single visit to a hospital can make you spend all the money you kept aside for something else.

Health insurance is one of the precautionary measures that everyone should have. There is a quote – ‘Do not learn safety by accident’. You follow traffic rules and other safety guidelines while driving so that you reach your destination safely – otherwise, you may end up facing an accident. Learning safety only by an accident shows your foolishness.

So it is always better to have medical insurance. Know how to buy medical insurance sensibly in our next article, Buyer’s Guide to Medical Insurance.

You may also like to read:
Buyers Guide – Medical Insurance
Get Insurance for Adverse Financial Outcomes