While you're working hard to reach your financial goals, unexpected health issues can have a significant impact on your journey. If you are the sole breadwinner for your family, the financial stress can be overwhelming even if someone in your family is receiving emergency treatment. Rising private healthcare costs in the country could leave hospitalizations a big hole in your pocket and have a significant impact on your financial health. Buying health insurance is a smart way to protect your finances. When you buy health insurance, you enter into an insurance contract whereby the insurance company agrees to cover your medical expenses.

Health insurance is one of life's biggest purchases, so it's important to understand the pros and cons before making a purchase. To help you make an informed decision, here are some key health insurance pros and cons:

Health insurance benefits
1. Health insurance protects you financially.
As mentioned above, the biggest benefit of getting health insurance is that it prevents your savings from being depleted in the long run. You can save and invest for goals like buying a house or raising children, but you or someone in your family may need to liquidate your assets in an emergency.

If you still can't manage your expenses, you can borrow or get loans from family and friends. All of these can affect your current financial position and long-term goals. Getting health insurance will help you avoid the consequences of increased costs for quality healthcare. 

2. Availability of parameters
Gone are the days when insurance companies only offered basic coverage. Modern insurance companies offer a variety of health insurance policies. For example, most insurers now offer private insurance and variable family plans. While you can protect yourself with a personal plan, you can keep your whole family healthy with a family floating plan.

3. Tax benefit
In India, many people buy health insurance because of the tax benefits. Tax benefits should not be a reason to invest in health insurance, but they are a significant benefit. Under Article 80D of the Information Technology Act, a person under the age of 60 can receive a tax deduction of up to 1 million won. I paid $25,000 in health insurance premiums. If you are over 60, the maximum deduction limit is 1 million won. 50,000 An additional deduction of 1 million won is possible if the health insurance of the parent under 60 is also enrolled. 25,000. If the parent is above 60 years, the deductible limit is Rs. 50,000 So, if you are over 60 and have purchased health insurance for yourself and your parents over 60, the total tax credit you can claim in a tax year is up to Rs. 75,000

4. Peace of mind
Another important benefit of health insurance is the peace of mind it provides. Getting health insurance can give you a great sense of security, especially if you are buying a family plotter plan. You will feel a certain sense of security knowing that your and your family's health is fully protected.

With a health plan, you don't have to worry about medical expenses and can choose the best care for you and your family. Quality assurance speeds recovery, helping you get back to health faster than you expect.

Disadvantages of health insurance

1. Insurance premiums go up as you get older
Speaking of cons, one of the most important is the relationship between health insurance premiums and age. Your age plays an important role in determining your premium. There can be a significant difference in premiums when you sign up for health insurance at age 30 and when you sign up after age 50.

If you're over 60, finding health insurance can be difficult. Because your chances of developing health problems increase significantly as you age, insurers pay higher premiums to compensate for the higher risk. That is why it is said that they prefer to buy health insurance when they are young. 

2. Waiting time for existing health problems
Most health insurance plans have a waiting period of up to 2-3 years for pre-existing conditions. You have high blood pressure, diabetes, thyroid, etc. how long have you been insured? Medical expenses incurred due to a condition such as a medical condition will not be reimbursed until the waiting period is over. This is one of the biggest disadvantages of health insurance because even if you have health insurance, you have to pay medical expenses. This is another reason to get health insurance if you are young and healthy. However, there are now insurance plans with shorter waiting times.

3. Co-pay offered
Many insurance policies have a deductible or deductible to prevent fraudulent claims. If the insurance policy you receive has a co-payment clause, you must share the cost of your medical care with the insurance company. Out-of-pocket costs are usually defined as a percentage of total medical bills.

For example, if your policy has a 20% co-payment clause, you will have to pay 20% of the hospital bill and the insurance company will pay the rest. These provisions are usually found in low-cost health plans that attract people with lower premiums. Before buying insurance, always check the insurance documentation carefully for inclusions, exclusions, and other terms.