How Health Insurance Can Protect You from Rising Healthcare Costs

Some people will find themselves lucky to go through life without any major health incidents. However, lifestyle diseases such as high blood pressure, diabetes, and high cholesterol are affecting larger portions of the population. The good news is that more Indians are taking proactive steps to avoid or detect illnesses early, thanks to rising incomes as well as growing awareness of the impact of healthy lifestyles and preventative measures. This is fueling demand for more health services and access to newer forms of treatment. However, it is also driving medical inflation with average spending for healthcare increasing and surpassing retail inflation levels each year.

The Commonwealth Fund noted that out-of-pocket payments for healthcare accounted for 65% of total health expenditures in India1, making the financial impact of health emergencies on family finances more significant. The COVID-19 pandemic, with its scale and transmission rate, is the most visible example of why it is critical to prioritize your health and wellbeing as well as have a safety net for health emergencies. Comprehensive Health Insurance is the primary way to ensure that your hard-earned savings are not depleted when it might be needed most. When looking for health insurance, consider a Mediclaim plan that can offer comprehensive coverage for treatment as well as life coverage to help your family in the event of your absence.

How does health insurance work?

Health insurance covers medical expenses for the policyholder and any insured family members in case of an emergency by reimbursing for procedures and supporting cashless treatment. The policyholder pays a regular premium in exchange for the health protection. It covers expenses from in-patient and day-care surgery procedures as well as treatment of chronic illnesses. This reduces out-of-pocket payments, and any surprise bills that policyholders and their family would otherwise be responsible for. In this way, your wellbeing or the wellbeing of your family member can be the focus rather than how you will pay for the care or medication.

How does health insurance continue to protect as costs rise?

While illnesses and healthcare costs are nearly impossible to predict, health insurance makes it possible to have a plan for anything that crosses your path. Some health plans, like the Mera Mediclaim Plan offered by PNB MetLife, include an added benefit for going five years without submitting a claim, for example. You can also opt for riders that provide additional coverage for situations like accidental death, serious illnesses, and accidents that result in a disability.

Policyholders and covered dependents may also be eligible for annual checkups in many plans so that you and your family can stay on top of health needs and reduce the likelihood of pricier medical procedures down the road. Coverage for alternative treatments, such as Ayurveda, yoga, naturopathy, unani, siddha, and homeopathy (AYUSH), add value to health plans by expanding the network of healthcare providers available to you. These features prioritize preventive care, which is understood to be less expensive overall than treating an illness when it strikes.

Like saving for your child to go to college, paying into a health insurance scheme offers the peace of mind that you and your family will be protected should anyone covered under the policy experience a health crisis. Compared to what it would cost to get medical treatment at a private hospital without insurance, you ultimately get more value from the premium for a health insurance plan. Additionally, owning health insurance carries tax benefits based on Section 80(D) of India’s tax laws. This means that policyholders are eligible for deductions on money spent for insurance premiums and healthcare services provided to you and insured family members.

Health insurance is a must-have to navigate today’s unpredictable medical marketplace, especially if you are taking your health more seriously. As the cost of care increases, insurance can provide essential protection so that you can focus on getting well instead of paying for treatment. Talk to a financial advisor about the best policy to suit your budget and family’s needs. A health scare or medical emergency should not have to bankrupt your family or create a detour in your future plans.

¹https://www.commonwealthfund.org/international-health-policy-center/countries/india

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Whether you are trying to lose weight or making a shift towards a healthy life, understanding your BMI (Body Mass Index) is one of the first necessary steps you can make. The BMI calculator can indicate your body’s fat content based on your weight and height. Once you have a clear view of this, you can go through different health insurance plans on the PNB website and secure your future financially against the growing healthcare costs.