Is Health Insurance Mandatory?

Most families in India depend on their savings or income to meet the healthcare expenses. One of the important reasons why people avoid buying health insurance policy is that it does not offer any maturity benefits but only provides compensation for medical expenses.

Also, there is a general lack of awareness among the people about the importance of insurance and this is another reason why the health insurance penetration is quite low.

Is it mandatory for all to buy health insurance?

Unlike vehicle insurance, there is no legal obligation to purchase a health insurance policy. However, from the financial planning perspective and giving your family a cushion against the high medical cost, health insurance is a necessity for all.

You may know that health problems are on the rise. And, even as new treatments and drugs are invented, the number of people suffering from lifestyle-related diseases is also increasing at an alarming rate. Additionally, medical inflation has been growing rapidly. This means the treatment cost is increasing every year.

In such a situation, having robust health insurance, preferably more than one health care plan, is the only way to meet the planning and emergency medical requirements. Without health insurance, you may face the risk of depleting all your hard-earned savings in one go.

Should health insurance be made mandatory for all?

The healthcare system in India is not the best. Many people are unable to get access to quality healthcare mainly because of lack of funds, especially among the low-income groups who rely on public healthcare. There have been cases reported about loss of life due to not getting timely treatment or overcrowding in the public hospitals. This came to the fore during the surge in the COVID-19 cases.

In such a situation, many experts believe it is vital to make health insurance accessible to all so that people can seek proper treatment without worrying about the high cost. Whether it is an individual policy or family floater plan, having a health insurance cover gives you the peace of mind knowing that your loved ones are always protected.

Benefits of have a health insurance policy

  • Increased risk of illnesses due to lifestyle changes

Over the years, our lifestyle has undergone a massive change. Today, many youngsters, in their bid to stay competitive, live a very fast-paced lifestyle. They have an erratic sleeping pattern, eat unhealthy food, and perform little or no exercise. All these factors, coupled with constant exposure to pollution and long hours of sitting suffer from a range of diseases.

The instance of youngsters suffering from chronic illnesses like diabetes, cancer, etc. are also on the rise. This implies that they are more vulnerable to get hospitalised. The treatment cost for some of the illnesses can run into several lakhs. To ensure that you afford the expenses, health insurance is a must have.

  • Medical emergency can happen anytime

We buy insurance for our home, vehicle, but what about the most important possession – health? You must understand that securing your health is vital as medical emergencies can occur at any time and it can cause physical stress as well as financial hassles.

And while dealing with an illness and undergoing treatment, the last thing you would want to worry about is arranging funds. With health insurance you need not worry about such things as the insurance company will take care of the bills.

Final Word

There are many other benefits of health insurance, like tax deduction, which helps you to reduce your annual tax liability. So, purchase a health care plan from a reputed insurance company and stay prepared for all medical emergencies.

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Lisa Schiller