Articles 388 views March 9, 2020

Healthcare Costs are Skyrocketing, So Why is Young India Ignoring Health Insurance?

India is the second most populated country in the world and it is one with the highest young population. Yet, a large population in India is either unaware of health insurance policy, or are comfortable with what their companies provide. With a fast-paced life and lack of exercise, most of the Indians are exposed to the threat of various ailments and diseases, therefore the need for a health insurance plan covering the rising cost of healthcare is a must. However, it is alarming to know that not many Indians ignore the importance of a health insurance plan.

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According to IRDAI (Insurance Regulatory and Development Authority of India) an apex insurance regulatory body, approximately 44 percent of the 1.30 Billion Indian population has a health insurance cover, while the rest of the majority of the population is covered under national health insurance schemes. Additional statistics from public research data states that only 5% to 8% of the Indian have availed a health insurance policy from private insurance providers.

The statistics showcase that the main reason for the poor acceptance of health insurance plans in India is that the young Indians are unaware of the importance and benefits of having a health insurance plan. Health insurance coverage for all Indians is a long way ahead. Let us understand the top reasons why young India is ignoring health insurance:

  1. Lack of awareness: In India, there is limited awareness about the importance and benefits of owning a health insurance policy
  2. Overconfidence: most people overestimate and think that nothing will happen to them. However, they do not realise the cost of medical treatment creates a dent in their savings. Young people do not think about health risks or medical treatments as they have over-confidence as nothing will happen to them because they are young.
  3. Additional Burden: Many of the youngsters believe that spending on health insurance plans is an additional financial commitment. They think paying bills, paying for accommodation and food are basic financial commitments but buying a health insurance plan will bleed them financially.
  4. Underestimate Medical Inflation: Youngsters underestimate medical inflation, they have scarce knowledge about the skyrocketing cost of the healthcare sector and the reaction it will create on their savings.

Thus, these are a few of the basic reasons why many young Indians ignore health insurance. However, it is time to make them understand the importance of having a health insurance plan. The following are the reasons that will help them understand why ignoring health insurance is not a good option.

  1. Protection of Family: one of the most important reasons to avail of a health insurance plan is to secure the finances of the family. The rising cost of healthcare can create a dent in the savings. Additionally, having a health insurance plan will ensure that your family does not have to spend time arranging finances at times of medical emergencies.
  2. Cashless Benefit: Most of the health insurance policies offer the comfort of cashless medical treatment ensuring that you and your family receive the best of medical attention without worrying about the bills or cost of treatment. Most of the health insurance providers have made the claim settlement quick and hassle-free.
  3. Critical illness: Cost of treating critical illness breaks the finances and wipe the entire savings. However, having a health insurance plan with critical illness cover will ensure that you can receive top-notch treatment and that your savings are safe.
  4. Tax benefit: health insurance plans can be used as a tax-saving tool as all the premiums paid for health insurance plans are entitled to receive tax benefits under section 80C of the Income Tax Act.

Last but not the least, health insurance is the best tool to safeguard the health and finances of your family. So, plan early and take benefits of the plan in times of medical emergency.

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