Understanding the importance of Health Insurance

3 min read Apr 17, 2024

The importance of Health Insurance cannot be understated. As medical expenses continue to soar and lifestyle diseases become more prevalent, having a robust Health Insurance policy isn't just an option—it's a necessity. A health cover helps pay for unexpected medical bills and ensures you and your family can access top-notch medical care without depleting your savings. So, let's explore the benefits of the right Health Insurance for your health and financial well-being.

Why is Health Insurance important?

Health insurance helps you cover the cost of medical treatments, so you don’t have to pay big hospital bills from your pocket. Highlighting the importance of Health Insurance, now let's delve into the reasons why Health Insurance is important:

• To fight lifestyle diseases: Sedentary lifestyles have increased the risk of diabetes, obesity, and heart conditions. Health Insurance provides a safety net that allows for early diagnosis and management of such conditions, ultimately leading to better health outcomes and reduced financial strain. This proactive approach supports healthier living habits and encourages regular health check-ups, making managing and preventing lifestyle diseases easier.
• Safeguard your family: By opting for a family health insurance plan, you ensure that you and your loved ones are protected against medical emergencies. This collective coverage means everyone can receive quality treatment without compromise. It wraps your family in a safety net, ensuring everyone, young and old, can get medical help when needed without the worry of substantial medical costs.
• To supplement employer-provided insurance coverage: Often, the health insurance provided by employers may not cover all aspects of healthcare or might offer insufficient coverage. Having your own Health Insurance fills these gaps, ensuring comprehensive protection. It lets you tailor your coverage to fit your health needs and comfort you, knowing you have extra protection that fills in any gaps your work insurance might not cover.
• Deal with medical inflation: Medical treatment costs are escalating alarmingly. Health Insurance helps mitigate the impact of medical inflation by covering hospitalisation costs, treatment expenses, and even post-hospitalisation recovery costs. As medical technology advances, the cost of treatments and procedures also increases. Health Insurance ensures that you have access to the latest and most effective treatments without worrying about the financial burden they might impose.
• Protect your savings: Without Health Insurance, medical emergencies can lead to significant financial distress, depleting your savings or even pushing you into debt. Health Insurance ensures your finances are safeguarded, allowing you to focus on recovery instead of bills. Health Insurance is a financial safeguard, ensuring that your savings are reserved for your aspirations and life plans rather than being depleted by sudden medical costs, thereby securing your financial well-being.
• Enjoy insurance coverage during your old age: With each passing year, the risk of health problems tends to rise, making it harder to obtain insurance. By getting Health Insurance sooner rather than later, you ensure that you have the coverage you need as you get older, which is often when it is most crucial. Signing up for Health Insurance at a younger age can also lead to cheaper premiums and better coverage since insurance companies consider younger people less risky.

How to select a Health Insurance Policy?

Selecting the right Health Insurance policy is a critical decision that significantly impacts your health and finances. Understanding the significance of Health Insurance is the first step in this process. Here is how you can select the right one.

Evaluate your needs
Begin by assessing your and your family's health needs. Consider factors such as:

• Pre-existing Conditions: Policies have different waiting periods for pre-existing conditions, typically 2 to 4 years.
• Hereditary Health Issues: If your family history includes specific diseases, look for policies with a broader coverage spectrum.
• Lifestyle: For those with a high-risk lifestyle or job, plans with accident coverage are advisable.
• Financial Situation: Premiums can vary significantly, from as low as ₹5,000 to over ₹20,000 annually for basic coverage, depending on the insurer and the benefits provided.

Understand your options
India’s Health Insurance market offers a variety of plans:

• Individual Plans: Ideal for single individuals looking for dedicated coverage.
• Family Floater Options: Family Floater Options are health insurance that covers the whole family under one policy. Instead of buying separate insurance for each person, you have one policy, and the coverage amount can be used by any family member who gets sick or needs medical attention. Depending on the policy, your family can include not just your spouse and children but, in some cases, also your parents, offering a solution for your family's health insurance needs.
• Critical Illness Insurance: Such plans provide a lump sum on diagnosing specified severe illnesses, which is helpful for diseases with high treatment costs.
• Top-up Plans: Top-up Plans are beneficial because, in addition to raising your coverage at an affordable price, they can extend benefits to include accident and disability cover, ensuring more comprehensive protection for you and your family without significantly increasing your initial insurance costs.

Compare the benefits
When comparing Health Insurance policies, consider:

• Sum Insured: Ranges widely, with policies offering from ₹1 lakh to over ₹1 crore in coverage.
• Network Hospitals: Look for insurers with a vast network of hospitals; more extensive networks provide more options for cashless treatment.
• Coverage for Diseases: Check the list of diseases covered and note the waiting periods, especially for pre-existing conditions and maternity benefits.
• Customer Service Quality: A responsive team can significantly ease the claim process.
• Claim Settlement Ratio: Higher ratios indicate a better chance of claim approval. The industry average in India hovers around 90%, with some leading insurers boasting ratios of 95% or higher.

Also Read: Health Insurance explained: Unraveling deductibles and co-pays

With Axis Bank, you have lots of Health Insurance choices: The New India Assurance Plans give you full coverage, Aditya Birla Health Insurance offers plans that help you take charge of your health, TATA AIG General Insurance is budget-friendly, Niva Bupa Health Insurance focuses on your family's health, and Royal Sundaram General Insurance covers just about everything you might need. Thus, as you stand at the crossroads of decision-making, let the array of these trusted Health Insurance plans guide you to the one that promises a healthier, worry-free future.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
Disclaimer: Purchase of insurance product by Bank’s customer is purely voluntary and not linked to any other facility from the bank.