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Why is Health Insurance Important in India ?

India is undoubtedly one of the fastest growing economy in the world, but on the other side it is also a home to many diseases. Thanks to development in medical science, in India many ailments are treatable but what pinches your pocket is the cost to treat those diseases. Many get this need catered by their employer’s health cover; however that isn’t the permanent solution. The employer’s health benefits or insurance cover lasts only till the time you are working in the company once you quit you lose all the accumulated benefits and coverage too. Probably, by that time your age could be above 30 years so chances of premium hike prevails, plus your pre existing illnesses remain uncovered at the time of buying the insurance. Hence, it’s important in India that people buy a health insurance plan to secure their medical needs.

Reasons why health insurance holds a prominent space in a country like India?

Living in this fast paced world is becoming increasingly stressful and resulting in major health conditions especially among Indians. Millions of Indians lose their lives to heart diseases and diabetes, which, according to a report by WHO is the leading cause of death in India. Apart from that, respiratory diseases, birth complications, and infectious diseases are also rampant. An excellent way to prepare for such situations is to avail of health insurance policies.

Low penetration

In India, Only 1.1 billion of the Indian population which is less than 15% of the Indian population is covered through health insurance. As per WHO statistics 31% and 47% of the hospitalisations in urban and rural India are either financed by loans or through sale of assets. Additionally as per the figured, 70% of Indians spend their entire income on healthcare and 3.2% of Indians fall under the poverty line owing to high medical bills. This clearly shows India is still an untapped market for health insurance policies. People in India are not much aware about what a health insurance plan is how it works? And why should they get one for themselves? Due to which they lose on the lifetime savings and sell their precious assets to pay the medical bills some below the poverty line chose to settle with inferior medical treatment.

Benefits of health plans

Financial stability

Emergency medical expenses may result in severe financial distress. You may have to dip into your savings or sell your assets to meet such expenses. When you buy a health plan, you are assured of financial stability during an illness. You remain better planned

Best treatment

You may have to compromise on the treatment plan in case of a health condition due to lack of funds. With the best health insurance plan, you have the assurance of procuring the best treatment to overcome any health condition.

Choice of insurance plans

Different insurance companies offer various types of health policies. Opting for the best health insurance available in India may be confusing. HDFC ERGO has a variety of insurance plans. You may avail of a plan that specifically caters to your requirements.

Avail of health coverage so that you may take benefit of all the health insurance advantages because safeguarding yourself and your family against health problems is the best investment you will ever make.

Health insurance coverage

Insurance providers offer different types of plans to maximize coverage and benefits. Some of the coverage includes pre and post-hospitalization expenses, hospitalization costs, day care processes, and domiciliary treatment. Here are two most basic types of health insurance plans in India.

Indemnity plans

These policies will compensate the actual finance that has been incurred. You may avail the entire coverage amount multiple times during the policy term. Below is the list of a few expenses covered under indemnity health insurance.

  • Hospital room rent

  • Operation theater charges

  • Doctors’ fees

  • Medicine costs

  • Pre and post-hospitalization expenses

Explore my:health Suraksha Insuranceto see detailed list of coverage and benefits

Lump-sum benefit policies

These types of health plans pay the entire sum assured if the covered event occurs. For example, if the health plan includes critical illness coverage and you are diagnosed with the same, you will receive the benefits. The objective of such plans is to offer you financial support to meet expenses like:

  • Physiotherapy or other rehabilitation procedures

  • Monitoring devices needed in case of critical illnesses

  • Follow-up medical tests and investigations

  • Dietary supplements

  • Ergonomic furniture or home modifications needed due to your illness

Explore Critical Illness Insurance to see detailed list of coverage and benefits


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