Your Money: Three reasons why you need health insurance

Health plans take care of expenses like pre-/ post-hospitalisation charges, medicines, medical check-ups, and more

Inadequate savings When it comes to saving money, we as a nation are quite good at it, no? But do we save enough to encounter medical emergencies? The savings are inclined more towards being invested for better returns in the future.
Inadequate savings: When it comes to saving money, we as a nation are quite good at it, no? But do we save enough to encounter medical emergencies? The savings are inclined more towards being invested for better returns in the future.

Health insurance is a financial support system you purchase to tone down your monetary burden if you go through medical emergencies. Even though the Insurance Regulatory and Development Authority of India (Irdai) has amplified measures to educate people about health insurance, their reach has been limited.

Here are the top three reasons why we need health insurance

Inadequate savings
When it comes to saving money, we as a nation are quite good at it, no? But do we save enough to encounter medical emergencies? The savings are inclined more towards being invested for better returns in the future.

Today, diseases like cancer and circulatory system disorders are already the top two highest claims followed by gastrointestinal and respiratory conditions. There are a lot of insurance policies focused on critical illness benefits for you to fight such conditions effectively.

Medical insurance
The scale at which medical expenses are rising makes it imperative to buy health insurance. This increase in per-person medical cost due to inflation, also known as the medical trend rate, is at an all-time high. The forecasted medical trend rate will be at 10%, while the inflation stays at 5%. That’s the trend rate rising at double the inflation rate. Today, diseases like cancer and circulatory system disorders are already the top two highest claims followed by gastrointestinal and respiratory conditions. There are a lot of insurance policies focused on critical illness benefits for you to fight such conditions effectively.

Hidden hospital costs
Your treatments at a hospital are not just limited to the costs incurred during your hospitalisation. Several underlying costs like pre-medical checkups, doctor’s fees, and prescribed medicines often account for a chunk of expense higher than your hospitalisation charges. In parallel, there are diagnostic tests and post-surgical/operative care that may require an attendant to take care of you for a couple of weeks/months. Add up all the above factors, and you have the answer to why have your medical expenses skyrocketed.

Health insurance plans cover a wide array of ailments and conditions. There are policies that take care of several aspects associated with your hospitalisation like pre-/ post-hospitalisation charges, medicines, medical checkups, and more.

Source: Tax Guru

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