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Business News/ Money / Personal Finance/  Why you should buy health insurance plans for your family
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Why you should buy health insurance plans for your family

Health insurance plans for family: The financial security of an individual is protected by having a medical insurance

Health insurance provides people with access to medical care. (Pixabay)Premium
Health insurance provides people with access to medical care. (Pixabay)

How do you buy a health insurance plan for your family? With numerous life, term, and health plan options in the market, deciding what is best for you, and elderly members of your family (senior citizens) can be quite a daunting task. The financial security of an individual is protected by having health insurance. With the ever-rising instances of diseases, health insurance today is a necessity.

According to Anand Dalmia, Co-founder & CBO of Fisdom, India has one of the highest medical inflation rates in Asia. With the rise in lifestyle-related illnesses, this trend is expected to continue, making medical expenses a significant component of overall expenses, especially as individuals age. While the timing and nature of medical expenses are unpredictable, their impact on personal finances is certain. 

Why buying health insurance plans is essential

“To avoid financial hardship during a medical emergency, it is essential to have adequate medical insurance. Such exigencies already pose a significant physical and emotional challenge to those affected and their loved ones; adding financial stress only compounds the misery," said Dalmia

Vinit Khandare, CEO & Founder, MyFundBazaar said the financial security of an individual is protected by having health insurance. Without the support of a top-notch health insurance plan, medical bills can easily become prohibitive.

Having trustworthy health insurance can be especially important for those who suffer from chronic ailments or have pre-existing medical disorders.

“Without health insurance, the costs associated with these types of catastrophic conditions will frequently be higher than what a person could afford to pay out of pocket, leading to large debt or, in the worst-case scenario, financial hardship, and eventual medical bankruptcy," said Khandare.

Health insurance is essential for many reasons

Amit Gupta, MD, SAG Infotech said health insurance provides people with access to medical care, including preventative services, physician visits, hospital stays, diagnostic tests, and prescription medications

1) Health insurance provides people with access to medical care

2) Some individuals would not be able to pay for these therapies without medical insurance, leading to inadequate or delayed care.

3) Insurance for health care also offers financial protection. Without health insurance, people would be forced to cover all of their medical costs out of pocket, which may be quite expensive

People who have health insurance are protected from such unforeseen medical expenses, which brings them comfort and lessens their concerns and anxiety, said Amit Gupta

Therefore, securing adequate medical insurance is crucial to ensure that medical emergencies can be dealt with without worrying about the associated financial burden.

According to the National Health Accounts Estimates 2019-20 released on 25 April, a consistent decline in the share of out-of-pocket expenditure in total health expenditure has been recorded from 62.6 per cent in 2014-15 to 47.1 per cent in 2019-20,  This is a piece of positive news as medical expenses are among one of the reasons for Indian families falling back into poverty.

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 28 Apr 2023, 11:15 AM IST
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