Why Buy Health Insurance


Healthcare is expensive. Technological advances, new procedures and more effective medicines have driven up the cost of healthcare. This increase has to be borne by the consumer, making treatment unaffordable for too many. Health Insurance overcomes these obstacles so that you remain free of anxiety regarding your health. Think for a moment about the enormous medical costs you would incur if you suffered a major accident tomorrow or were suddenly stricken by an illness. Uninsured people live with such risks every day. Health insurance seeks to shield you from that risk. It provides the much needed financial relief.

Modern research and technology have resulted in cures for dreaded diseases. However these cures have high operating cost and hence are available to a select few. It is estimated that the cost for hospitalization and other medical expenses would further rise with the increase in inflation. It is not only the hospitalization/operating costs but also the indirect expenses such as travelling, boarding and lodging and sometimes even loss of income for the period of hospitalization and recovery, which can eat into your finances.

Having an adequate health insurance can give you some peace of mind by taking care of the financial part.


In today's scenario, most people have sedentary lifestyles coupled with stressful jobs, hardly any time to exercise or to take a proper diet. In the long run, it all leads to various health issues such as obesity, diabetes, heart problems, sleep disorders and such. You never know when a medical emergency may arise. 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 at least assured of financial stability during an illness.


Having adequate health insurance means you do not have to compromise on the treatment plan due to financial reasons. You can opt for the best treatment available in the best healthcare institutions.


The premium paid towards health insurance policies qualifies for deduction under Section 80D of the Income Tax Act. The benefit is available to individuals for health insurance premiums paid for self, spouse, children, and parents.

Currently, on the premium paid, the maximum deduction that can be availed is Rs 25,000 a year, provided the age of the individual as well as that of the other family members insured is not above 60.

If the premium paid by an individual is towards a health policy for his or her parent who is a senior citizen above the age of 60, then maximum is capped at Rs 30,000. A taxpayer can, therefore, maximize tax benefit under section 80D to a total of Rs 55,000 if his age is below 60, while parents' age is above 60.

For those tax payers who are above the of age 60 and are also paying health insurance premium for their parents, the maximum tax benefit under section 80D would therefore be a total of Rs 60,000.


These days, most health insurance plans also cover alternative systems of medicine such as ayurvedic, unani, siddh and homeopathy (AYUSH) etc up to a certain limit.

Find out more about Domestic Health Insurance