Benefits of Having Health Insurance

Posted on: Jun 26, 2025 | 3 mins | Written by: HDFC ERGO Team

Benefits of Having Health Insurance

Protection from High Medical Costs

One of the biggest benefits of health insurance is that it shields you from skyrocketing medical expenses. Healthcare inflation in India is on the rise, and even a minor treatment can dent your savings. A comprehensive policy covers hospitalisation costs, surgery expenses, ICU charges, doctor’s fees, diagnostic tests, and medications. Without insurance, managing these costs out-of-pocket can be financially draining.

All this helps you focus on recovery instead of worrying about bills

Cashless Hospitalisation Facility

Most health insurance plans come with a cashless hospitalisation facility. It means you don’t have to arrange large sums of money upfront during a medical emergency. You can receive treatment at any network hospital without paying cash – the insurer settles the bills directly with the hospital.

• Hassle-free admission and discharge

• No need to arrange funds during emergencies

• Valid at a wide network of hospitals

Coverage for Pre and Post-Hospitalisation

Health insurance covers more than just hospital bills. Many policies pay for medical expenses incurred before hospitalisation (like doctor consultations, diagnostic tests) and post-hospitalisation (follow-up visits, medicines). This ensures complete care without extra costs.

• Pre-hospitalisation cover: Usually 30-60 days before admission

• Post-hospitalisation cover: Generally 60-90 days after discharge

Access to Quality Healthcare Services

Having insurance helps you choose better hospitals and specialists without worrying about financial costs. Good hospitals may be expensive, but with insurance, you can avail quality care at reputed facilities. This ensures timely and better treatment, which can speed up recovery.

• Better hospital options

• Access to experienced doctors

• Timely medical attention

Preventive Health Checkups

Many plans offer free annual preventive check-ups. Early detection of diseases can help reduce complications and treatment costs later. Preventive care is a significant part of the benefits of having health insurance.

• Annual check-ups included

• Early detection saves lives

• Encourages a healthy lifestyle

Mental Health and Wellness Support

Modern health insurance plans cover mental health treatment and counselling sessions. This is vital since mental wellness is equally important. Coverage may include therapy, counselling, and medication for mental health conditions.

• Covers mental health treatments

• Access to counselling services

• Promotes overall well-being

Tax Savings on Premiums

Under Section 80D of the Income Tax Act, you can claim deductions up to ₹25,000 per year (₹50,000 for senior citizens) on premiums paid towards health insurance. This means you save money while ensuring protection.

• Tax deductions under Section 80D

• Higher deductions for parents and senior citizens

• Reduces taxable income

Peace of Mind During Health Emergencies

Medical emergencies can happen anytime and to anyone. Health insurance offers peace of mind knowing that you and your loved ones are financially protected. You can focus on treatment instead of worrying about hospital bills.

• Financial backup in emergencies

• Less stress for family members

• Confidence to tackle unexpected situations

Financial Security for the Family

A major part of the benefits of health insurance in India is securing your family’s financial future. In the event of a sudden illness or accident, the policy covers your expenses, allowing your savings to remain intact for other goals, such as your children’s education, home purchase, or retirement.

• Protects long-term savings

• Ensures money is available for life goals

• Supports family during difficult times

How to Choose the Right Plan

When choosing a plan, compare coverage, network hospitals, claim settlement ratios, and additional benefits such as free check-ups. Review the sum insured, waiting periods, and exclusions. Choose family floater plans if you want to cover all members under one policy.

Conclusion

Health insurance is a necessity, not a luxury, today. It protects you from unexpected expenses, gives you access to quality treatment, and brings mental peace. Next time, when you think about what are the benefits of health insurance, remember, these include tax savings, cashless hospitalisation, and preventive care, among others.

Don’t wait for an emergency to happen. Secure your health and your future today.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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