How Health Insurance Can Help You Save on Medical Expenses

Did you know that a single hospitalisation can wipe out your entire life savings? And no, I am not exaggerating. As per a report, a day stay in ICU may cost around ₹1,500 in a public hospital and ₹30,000 in private ones. So, if you or your loved ones had to be admitted due to a serious illness or accident, you would be facing massive dents in your savings alongside the stress of a medical issue.

That's why having a health insurance plan is crucial. It can significantly reduce your out-of-pocket expenses and ensure you get the treatment you need without breaking the bank.

Health insurance provides a financial safety net for individuals when faced with high medical bills. Since health insurance ensures a cash value for specific categories of healthcare services, it can help ease the financial pressure of medical costs.By knowing how the health insurance system can function and what benefits a reliable insurer like the ACKO General Insurance can provide, any person can make an appropriate decision regarding health maintenance.

Kinds of Health Insurance Plans

There are different health insurance plans available, each catering to different needs. Some of them are:

1.     Individual Plans: This plan provides coverage to just the policyholder, aka you. It is suitable for young adults or ones without dependents.

2.    Family-Floater Plans: For policyholders with dependents, such as spouses, children, parents, etc., family floater plans are the best choice. This plan covers the complete family under one sum-insured option, making it cost-effective and efficient.

3.    Group Plans: Group health insurance plans are usually offered by employers allowing them to provide coverage to multiple individuals. The group enrollment gives the employer the benefit of discounted premium making it an ideal choice.

4.    Senior Citizen Plans: Senior citizen health insurance plans are tailored to meet the specific health needs of elderly individuals and cover the associated medical expenses. These plans are designed to address common health issues that are often found in senior citizens.

5.    Critical Illness Plans: This plan offers a lump-sum payment if the policyholder is diagnosed with a critical illness, such as cancer or heart disease. This helps avoid facing financial burden during a distressing time.

Why Should You Get Health Insurance Right Now?

Imagine facing a sudden appendicitis. Without insurance, the bill could run into lakhs of rupees. But with a health insurance plan, you might only pay a few thousands between your deductible and coinsurance.

Let’s discover why having health insurance is as crucial as an emergency fund.

1.    Financial Safety Net

Medical insurance means security, which gives a buffer against the costs attached to health treatment. It offers significant security by covering a wide range of treatments and services in healthcare facilities, which helps reduce out-of-pocket medical expenses.

2.    Savings on Medical Expenses

Medical insurance in part reimburses for expenses of a doctor’s visit, a stay in a hospital, medications, and other medical services. This in turn, helps one deal with heavy costs of service charges.

They can also access healthcare services at reduced rates from various insurance-approved providers within a network, thus lowering the costs of medical care. Hence, this reduction in prices is much more preferable over having no insurance.

3.    Importance of Preventive Care

Preventive care such as vaccinations, screenings, and yearly check-ups are often covered at little to no cost under most health insurance policies. Additionally, contributing to regular checkups as well as employing preventive care helps in early disease diagnosis.

It is not only advantageous to the health of the people, but also leads to long-term cost savings by preventing critical illnesses.

4.    Financial Protection

It is beneficial to have health insurance which will provide a serious means of financial security in case of such mishaps as accidents or severe illnesses. It means that during a severe illness or injury, people can get treatment without spending all their money and having their financial status compromised.

5.    Indirect Savings and Comprehensive Coverage

Outside of direct medical costs, policyholders are compensated for services such as mental health care, rehabilitative care, and maternity care. These care services are very important in the overall health and well-being; however, they are very expensive.

Insurance cover for these services means they receive adequate and needed attention without the policyholder or a family member fully funding the intervention themselves.

6.    Cashless Convenience:

Many health insurance plans offer cashless hospitalisation facilities at network hospitals. This means you don't have to shell out money upfront for treatment; the insurance company settles the bill directly.

The Bottom Line

Purchasing health insurance serves as a safety net, providing protection from financial strain due to medical expenses. By ensuring lower rates and shielding from emergency bills, it not only improves health but also secures the future for individuals and families.

Additionally, it is a necessary action in the event of illness or accident, offering peace of mind and financial security.

Disclaimer: The stocks, policies, and companies mentioned above are not recommendations from Finology Insider and should not be considered a substitute for professional advice. We strongly recommend consulting a financial professional or conducting thorough research before making any investment decisions.