Why Health Insurance is Important: Protect Yourself and Your Family | Spring Money

“Health is Wealth”, as the saying goes.

But what happens when you fall ill or meet with an accident? The cost of healthcare is on the rise, and without health insurance, medical expenses can quickly deplete your savings.

If you observe, in recent years, our lifestyle has changed significantly, leading to increased vulnerability to illnesses and medical emergencies. While the healthcare sector has also made breathtaking advancements to cater to these needs, it has also led to growing costs.

To avoid the burden of medical expenses, it is crucial to invest in health insurance at a young age rather than waiting until later in life.

The Covid-19 pandemic has shown us all that we aren’t prepared for medical emergencies and not having health insurance can make us helpless and will leave us with nothing else but regrets. In this blog, we will discuss how not having health insurance can damage your wealth and knock down your personal finances.

The High Cost of Healthcare

Healthcare costs in most countries are steep, and without insurance, paying for medical expenses can be a significant burden. Hospitalization expenses, diagnostic tests, doctor consultations, consumables, and surgeries can add up to a considerable amount.

For example, a heart bypass surgery can cost anywhere between ₹1lakhs to ₹5lakhs, and cancer treatment can cost anywhere between ₹5lakhs to ₹30 lakhs or even more. Without insurance, these expenses can wipe out your savings.

The table below represents the average treatment charges for some major critical diseases in India. Source: SBI General Insurance.

Disease	Treatment Cost (approximately)
Heart Disease	₹3 to ₹5 lakhs
Cancer	₹10 to ₹15 lakhs
Kidney Transplant	Over ₹7 lakhs
Angioplasty	₹2.5 lakhs
Liver Cirrhosis	₹10 to ₹20 lakhs

Impact on Your Finances

Not having health insurance can impact your finances and could continue to make them worse.

For example, firstly, you will have to pay for medical expenses out of pocket, which can be financially draining. Secondly, you may have to take a loan to pay for medical expenses, which can increase your debt burden.

Such loans have a higher rate of interest of around 11% to 15% depending on the amount and tenure. Any unpaid instalments could result in penalties and your credit score may suffer, making it difficult to get a loan or credit card in the future.

Access to Quality Healthcare Hindered by Financial Constraints

As we mentioned above that the healthcare sector has shown exponential growth and advancements. Such advancements demand a massive amount of money in the research & development phase causing the high cost of medicine, equipment, diagnostics and other medical facilities. Without appropriate health insurance, you aren't just risking your wealth, but also your family’s well-being. The lack of funds might force you to compromise on the quality of treatment you can get for yourself or a family member.

Conclusion

Not having health insurance can drain your wealth, shake off your finances and may destroy all your future plans and goals that you created for yourself and your loved ones. Hence it is essential to assess your healthcare needs and buy a health insurance plan that suits your budget and requirements.

Also, premiums paid for health insurance are tax deductible(up to ₹1 lakh) under section 80 D.

Are you looking for ways to secure a stable financial future beyond just life and health insurance?

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