Can you really save money by investing in a health insurance plan?

Health is wealth. All have heard this old adage millions of times, and it is still true in 2024. Not paying the required attention to your health can lead you to fall sick easily. While our bodies may be strong enough to endure minor illnesses or the typical cold, it is difficult to foretell the life-altering consequences of chronic disease. Most of us are overly optimistic about our health, which sometimes leaves us unprepared for significant health difficulties and hospital expenses. 

Moreover, what’s the point of planning out your investment plans and working hard if you’re lying in bed unwell all day? Considering how hospital expenses are touching the roof, health insurance policies become a necessary tool to save on exorbitant medical bills. In this post, we will be discussing how investing in a health insurance policy can save you money in the long run. 

How Can You Save Money With Health Insurance Plans?

You know you need health insurance, but you probably didn’t realize it could help you save money. Here are some suggestions to help you find the best plan:

1. Ensures your savings fund is untouched: Do you know buying health or medical insurance can significantly help you save your savings from getting drained by medical expenses? Due to rising healthcare costs, illnesses or accidents may end up being quite expensive and can cause your savings to go down. It also poses several other problems, such as you could have to take out a credit card loan or borrow money from friends and family, which would put you in debt. These out-of-pocket expenses are significantly reduced when you have health insurance, as your insurer will pay for the majority of your medical expenses upon filing your claim.
2. Covers your medical expenses: Health insurance is a need, not a luxury anymore. Investing in health insurance might bring you peace of mind. Depending on your demands, health insurance offers a range of coverage alternatives and protects you from significant financial losses. Apart from just hospital stays and accidents, it covers a wide range of medical bills, such as those for major illnesses, mental health issues, maternity care, ambulance costs, post-hospitalization expenses, and even annual routine exams. You will be covered financially in the event that you incur medical expenditures in any of these situations.
3. Cashless Claims give you financial peace of mind: When faced with a situation where the insured is in a hospital, a lot of individuals ask how to get your insurer to settle the hospital expenses. This is where the features of the cashless claims come into the picture. Cashless and reimbursement claims are the two main categories into which health insurance claims fall. When an insured person files a health insurance cashless claim, the insurer will pay the hospital bills directly. In other words, the insured person can be admitted to any network hospital without having to pay anything out of pocket (apart from any voluntary or non-voluntary deductible or co-pay amount specified in the policy).
4. Offers No-claim bonus: A cumulative bonus, sometimes referred to as a no-claim bonus, is awarded to the insured if they file no health insurance claims during the course of the policy year. This bonus can take the form of a cash payment, such as a reduction in your premium amount for the upcoming policy year, or occasionally, it might take the form of an increase in the total amount covered without resulting in an increase in your premium. In either case, this offers you a great chance to save money because you might get even more coverage for the same price or the same coverage for less.
5. Tax Benefits: Section 80D of the Income Tax Act of 1961 provides citizens with a tax exemption if they apply for health insurance. This is one of the most significant benefits of investing in health insurance. If you have paid a premium for yourself, your spouse, and a child in one financial year, you can claim up to ₹25,000 in tax benefits. If you paid an extra premium for your parents, you can claim tax benefits ranging from ₹25,000 to ₹30,000, depending on their age. However, obtaining a medical certificate from a respective hospital is required to claim the deduction. Along with this tax benefit, you can get by paying the life insurance premium, one of the best investment plans that everyone should have, and avail of tax exemptions under Section 80DD and Section 80DDB.
6. Free Annual Medical Examinations: Undoubtedly, access to quality health care plays a major role in determining our life expectancy. People can experience a variety of ailments or diseases at any time. For this reason, it’s critical that everyone get yearly medical routine check-ups. These tests are typically costly, but most health insurance policies in India offer these free of charge. This will help you stay aware of your healthcare and identify health issues that you might not have otherwise known. Routine testing includes pap screenings for cervical cancer, mammograms for breast cancer detection, and blood sugar level checks for diabetes. Early identification of any health issues may be essential to preventing or treating diseases quickly, which may result in significant financial savings on future medical expenses.

Note:

It’s vital to note that just like investment plans, not all health insurance policies are the same. For example, some companies provide more benefits than others—and in some cases, these benefits may be worth paying for even if their premiums are higher than those offered by competitors who do not provide as many perks or services (such as dental coverage at no extra cost). Most insurance programmes begin coverage for pre-existing conditions around the 48-month mark. Specific insurance programmes cover the same from 36 months onward. 

So, we are saying, 

Health insurance policies can help you pay for medical bills and other expenses that may come as a result of a sickness or injury. In addition, it can help you manage your financial future by allowing you to save for retirement. This implies that if you suffer a serious illness or accident, you can pay the required expenses without worrying about the cost. Investing in a health insurance policy ensures you always have access to great health care and that you are protected in the event of an emergency.