What are the Risks of Not Buying a Health Insurance Plan?
During the COVID-19 pandemic, more and more people have been inclined towards getting health insurance. However, many still shy away from getting this coverage, for a number of reasons.
Unfortunately, not buying a health insurance plan can lead to unforeseen effects on your finances, due to the increasing costs of getting healthcare treatment. No matter how young or healthy you are, you never know what might happen in the future.
It is important to understand the risks and consequences of remaining uninsured, so that you can make a more informed decision about investing in health insurance.
Why Don’t People Buy Health Insurance?
There are many reasons why people might not consider buying health insurance. Let’s take a short look at some of these, and clarify the issues they pose:
- A Lack of Awareness – Many people, especially in rural areas and emerging markets aren’t fully aware of the importance and benefits offered by health insurance.
- Complex Documents – Traditionally, buying insurance was a tedious process, with lots of difficult-to-understand paperwork and complex terms and conditions. However, today many insurance companies are based online, and some, like Digit Insurance, offer simple and easy-to-understand processes, free of paperwork.
- It’s Not Mandatory – Unlike some countries like the US, health insurance is not mandatory in India. Thus, people think that it is not vital to either them or their families. However, even if health insurance isn’t mandatory, it is a useful investment, as it can come to your rescue in cases of hospitalization, major illnesses, and more.
- Doubts About Premiums – Since health insurance requires you to pay regular premiums regularly, many believe that it is an unnecessary expense. Additionally, since it is a sizeable cost that often doesn’t have a visible return, many might consider it a futile investment, even if that is not true. As we have already mentioned, it can help secure your medical expenses, instead of dipping into your savings.
- Belief in Their Health – Lots of people, especially those who are young and healthy, feel that they don’t need to invest in a health insurance plan. However, whether you are young or old, it is crucial to secure your future with a health plan that can help you during emergencies. And, getting health insurance when you’re you means you will have cheaper premiums and can avail all the benefits when the need arises.
With healthcare costs rising across the country, and now the recent COVID-19 pandemic, it has become more important than ever to get past these misunderstandings and to invest in a health insurance plan.
What are the Consequences of Not Buying a Health Insurance Plan?
When you don’t have health insurance coverage, you will be at a significant disadvantage. Everything from getting the best treatment to paying massive medical costs will be harder. Here are some of risks of not having a health insurance plan:
1. Large Healthcare Expenses
Without health insurance coverage, any unplanned hospitalization from an accident to an illness can result in large healthcare bills. And if you have a long-term illness like a cancer diagnosis or a severe accident that results in disablement, they can require an expensive treatment plan.
And since health problems are usually unpredictable and can come without any warning, without health insurance, you don’t want to be left burdened with financial problems and debts after paying your medical bills.
2. Loss of Savings
With medical inflation, these days a serious accident or a health issue can end up costing you hundreds of thousands of rupees out-of-pocket. This expenditure has the potential to wipe out a person’s savings, meaning that they will have nothing to fall back on afterwards.
With health insurance, your out-of-pocket expenses will be greatly reduced, as your insurer will take care of expenses like hospitalization costs, and can even offer a lumpsum benefit to help you meet other medical expenses.
3. Falling Into Debt
When you have large medical bills to pay, it can lead to foregoing necessities and even borrowing money on loan, or even from friends and family to pay them. This means that you will be susceptible to debt.
This means that even after you recover, you are less likely to be able to save money, as those savings will be needed to pay the monthly EMIs to prevent a default. But, with a health insurance, this is not needed as it cuts down your out-of-pocket expenses and safeguards your and your family’s savings.
4. Increased Worry
Even though you might have some control over planned hospitalizations, when it comes to unplanned hospitalization due to unforeseen illnesses or accidents, you never know when it will happen or how it will impact your finances. This lack of financial protection can cause a lot of stress and worry.
Additionally, even while you are in the hospital, you might still be stressed about paying the bills after discharge instead of concentrating on getting better. All these burdens can be significantly reduced when you have a health insurance cover.
5. Lack of Quality Care
Your health, and that of your family, are very important. Thus, it is important that in case something happens, you don’t have to miss out on high-quality health care and medications.
When you don’t have a sound financial background, you might have to skip some aspects of healthcare, defer the treatment, or choose lower-cost medical treatment. When you have the protection of a health insurance policy, you won’t have to make this choice, as your insurer will help you to cover the expenses.
6. Losing Out on Tax Benefits
When you buy a health insurance, you can claim tax benefits under Section 80D of the Income Tax Act, and can actually save money on income tax. So, when you don’t have health insurance in place, you will be losing out on these savings.
Health insurance is indeed an expense. But with all its benefits, it is a sensible investment that you can towards safeguarding your financial resources as well a healthy future for yourself and your family. A health insurance plan will act as a safety net in times of need, so that you don’t end up paying all your bills by yourself.
Due to the state of the climate, an increase in stressful lifestyles, we are more exposed to diseases and accidents than ever before. And such unpredictable situations can end up draining your life-time savings in a moment. Which is why getting a medical insurance is a necessity and not a luxury.