Life is unpredictable, and health scares have become increasingly common. Whether you or a loved one is suffering from a chronic illness or in need of emergency medical care, health insurance is a boon. You can cover medical bills without taking on added stress with health insurance. This article will help you understand the importance of health insurance in points for easy reading.

What is health insurance?

Before moving on to the needs and importance of health insurance, it is important to understand it. Essentially, health insurance is an agreement by which a chosen insurance company guarantees that it will compensate you, the policyholder, for medical expenses. This insurance cover applies to medical emergencies that lead to hospitalisation, as well. You have to pay the insurance company timely premiums in exchange for this facility. The premium you must pay will depend on the insured person’s medical history, risk factors, terms and conditions, etc.

What is the importance of health insurance?

On the whole, purchasing a health insurance policy is important because medical treatment has become expensive in today’s day and age. Paying for hospital beds and room rents has become challenging, even for the well off. Paying insurance premiums in a planned and well–thought–out manner can save you the hassle and distress of arranging funds during difficult circumstances.

If you carefully peruse and choose a health insurance policy, it can cover various healthcare facilities. The sum assured can compensate you for medical tests, ambulance costs, hospitalisation expenses, operative procedures, and treatment of critical illnesses. To further help you, insurance companies have also introduced cashless treatment facilities. With this service, you can avail of treatment at hospitals within the insurance company’s network without worrying about making payments. The insurance company itself handles the medical costs on behalf of the insured.
What is the additional significance of health insurance policies?

Apart from the benefits mentioned above, here is a quick rundown of other points that contribute to the importance of health insurance:

• Cashless treatment: As mentioned above, if you seek treatment from a hospital associated with your insurer, the latter handles the medical costs without burdening you.
  
• Pre and post hospitalisation costs: Depending on the health insurance policy chosen, you also get to avail of pre and post hospitalisation charges, making medical care much more seamless.
  
• Transportation costs: Even relying on an ambulance to get a patient to the hospital can be expensive and is covered by various insurance policies.
  
• No claim bonus (NCB): If you do not file any claim in a year, you get to enjoy a bonus element in the next one.
  
• Medical check–ups: Apart from reimbursing medical bills, some insurance policies also cover health check–ups, offering free ones based on your NCB.
  
• Tax benefit: With the help of health insurance, you can avail of tax deductions under Section 80D of the Income Tax Act, 1961.
  

Now that you know more about why health insurance is so vital, read the terms carefully and pick a policy that suits you the best.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.