8 ways health insurance protects low- and middle-income families

Health concerns have been rising significantly over the past few years for Indian families. The burden of healthcare expenses may make life miserable for lower- and middle-income groups. Due to their limited assets and financial instability, medical expenditures can turn their lives upside down.

Therefore, purchasing health coverage for low-income families has become inevitable now. A cashless health insurance plan can even make treatment more accessible to these groups by eliminating the need to deposit money in case of a health emergency. This article highlights the top 8 reasons why low- and middle-income groups should consider health insurance.

Why is health insurance important for low-income groups?

Affordable health insurance plans can not only act as barriers during this financial shock but also provide the best treatment. It is almost impossible for them to meet health care expenses without a robust insurance plan. Here are 8 main reasons why health insurance is important for low-income groups:

1. Address growing health concerns

One of the key benefits of health insurance is that it helps you deal with rising lifestyle-related health problems. Poor eating habits and an inactive lifestyle are the reasons for chronic diseases like diabetes, hypertension, and heart issues. The right medical insurance for low-income families helps them access proper treatment without draining their savings.

2. Protects savings from unexpected healthcare expenditures

Lower- and middle-class families may not have a strong financial base. A sudden hospitalisation will not only weaken their bank balance but also force them to opt for a loan at a high interest rate or sell their assets. Health insurance acts as a saviour, preventing out-of-the-pocket expenses and protecting their savings.

3. Cover hospitalisation along with pre- and post-treatment expenses

Another importance of health insurance is that it offers hospitalisation costs. Sometimes, hospitalisation is required due to certain illnesses, which brings anxiety due to the rising medical bills. Medical insurance covers hospitalisation costs along with pre- and post-treatment expenditures, continuing processes, lab tests, and even medicine expenses.

Some insurance providers also offer cashless health insurance plans where a person can be admitted to a network hospital without worrying about submitting a lump sum cash before admission. So, health insurance safeguards your wealth and assets even in emergencies.

4. Wide coverage for a family under a single policy

Due to the rising healthcare costs and limited income, low-income groups might have difficulties in purchasing multiple insurance plans. However, many insurers offer family floater plans where the whole family is covered under a single sum insured amount.

5. Tax benefits and minimum financial burden

Section 80D helps low-income groups cut the real cost of health insurance. People can claim up to Rs 25,000 as a tax deduction on their premium, which lowers their final payment. This tax relief reduces money pressure and makes it easier for families with tight budgets to start basic health coverage.

6. Customisation and add-on covers

Many health insurance policies are blessed with add-on perks like critical illness cover, maternity cover, accidental coverage, etc., with a normal health insurance plan. By paying a little more premium, you can get additional benefits of health insurance.

Even if any of your family members need coverage for any specific treatments, you can take it to your insurer and go for a customised plan.

7. Funds preventive healthcare and free annual check-ups

Many medical insurance policies come up with annual health check-ups and screenings for life-threatening diseases. Lower-income groups may not pay attention to these check-ups due to their upfront costs. Health insurance policies cover these benefits, minimising risks and preventing future health expenses.

8. Provides mental peace and stability

Families can breathe freely once they know their health insurance policies will support them by covering all medical expenditures. So, add a health insurance policy with a term life plan to lead a wholesome and stress-free life.

A medical insurance policy not only safeguards your health from diseases but also strengthens your financial portfolio and gives peace of mind. From providing hospital coverage to tax benefits and preventing savings depletion, health insurance benefits are evident. So, what more reasons do you need to purchase medical insurance? Wisely select the right policy plan and leverage its benefits.