Importance of Health Insurance in India - Top Plans And Companies

Let's address the question straight up – What is the importance of health insurance in India?

Well, to understand that, let us look at a few vital stats – 

As per a finding by the National Institute of Health. The spread of non-communicable diseases in India has increased from 37.9 to 61.8% in the last three decades.

Last year, there was a record increase of 10% in the price of medicines in the pharma industry.

So, what insights can you gather from these two stats? Obviously, both the risk of health problems as well as the price of health solutions are increasing day by day. That is why purchasing health insurance has become a necessity to get ready for unexpected financial burdens.  

In this blog, we’ll discuss the various reasons for which you should buy a health insurance plan in India as well as top great government schemes and policy plans.

So, without further ado, let’s get started! 

Importance of Purchase Health Insurance Plans In India

Let us explore some more key reasons to invest in a health insurance policy. 

1. Financial Protection: Life is unexpected and so is the financial burden that comes with health problems. Health insurance is a great aid in such situations to manage hefty medical treatment bills without dipping into your savings. 

2. Access To Quality Healthcare: Good health insurance provides you with a network of great hospitals with top-quality healthcare services so you can get the best treatment. 

3. Coverage For Critical Diseases: Critical illnesses such as heart disease, diabetes, cancer, etc., require the finest treatment. Health insurance plans provide complete coverage for the medical treatment of such critical diseases. 

4. Tax Benefits: Health insurance is also a great tax saver, as the policy premiums you pay are eligible for tax deduction under Section 80D.

5. Peace Of Mind: Having health insurance brings you the utmost peace of mind, knowing there's financial security for unfortunate times. 

6. Coverage For Children: Some health policies may also help in safeguarding the health and medical needs of your children.

Government Health Insurance Schemes

The Indian government has always been motivated and provided tremendous health insurance schemes to the citizens of India. These schemes offer various health coverage benefits to empower the nation. Let’s learn about a few great Government health insurance schemes – 

1. Bhamasha Swasthya Bima Yojna

This scheme is designed for the low-income families of Rajasthan. Under this scheme, policyholders are provided with health coverage of up to Rs 5 lakh for medical expenses. What makes this scheme different is that women can also use their Bhamasha card to buy rations from government-authorised ration shops. 

2. Central Government Health Scheme (CGHS)

Probably one of the oldest health insurance schemes, CGHS was introduced in 1954 to provide healthcare coverage to government employees. Under the policy benefits, policyholders can get coverage for hospitalisation, homoeopathic treatments, free diagnostic services, etc. Moreover, the CGHS network hospitals span across 71 cities in India.

3. Employment State Insurance Scheme (ESI)

This health insurance policy is designed for employees in the private sector. As per the policy terms, any working professional in a company with an employee count over ten is eligible for this scheme. The ESI scheme provides coverage for various health contingencies such as maternity, disability, and even funeral costs. 

4. Ayushman Bharat Yojana

Ayushman Bharat Yojana is a popular health insurance scheme launched by the Ministry of Health and Family Welfare. The main aim of this scheme is to provide universal health insurance to the underprivileged. Under this scheme, policyholders can get health coverage up to Rs 5 lakh for medical treatments, diagnostic expenses, hospitalisation costs, etc. 

Options in Health Insurance Plans to Buy

With there being too many options in health insurance plans to purchase, selecting the right one is surely a complex task. To make it easy for you, we have below listed the various health insurance plan options and their features. 

1. Individual Health Insurance

If you are a young individual without any dependents, an individual health insurance plan is a suitable option for you. This plan covers one single individual with tailored coverage as per their needs. 

2. Family Health Insurance 

As if the name is not quite evident, family health insurance provides coverage for the policyholder, spouse, and dependent children. Purchasing a family insurance policy is often better than purchasing separate plans for each family member, as these plans offer higher coverage limits. 

3. Group Health Insurance

Group health insurance plans are generally offered by employers to their employees. This policy is primarily designed to cover a group of people and offer basic coverages. As the mortality risk is shared amongst the group, group health policy typically comes at lower costs.

4. Senior Citizen Health Insurance

Senior citizen health insurance plans are for people aged over 60. This plan provides high coverage against old age-related diseases and pre-existing conditions. 

5. Critical Illness Insurance

Treatment for critical illnesses such as cancer, stroke, and heart attack is often costly. In such cases, critical illness insurance proves to be a great financial help as it provides the policyholder with a lump sum amount upon diagnosis of the disease. 

Choosing the best among the various health insurance plans entirely depends on your specific needs, family size, and budget. Therefore, it is essential to carefully analyse and understand each plan. 

Best Health Insurance Companies and Plans

Below is a list of the best insurance companies with some of their top-selling health insurance plans. 

Company	Health Insurance Plan	Sum Insured (Min-Max)	Network Hospitals
Digit Insurance	Health Care Plus Plan	Up to ₹3 crore	16,400+
Bajaj Allianz	Health Guard Plan	₹1.5 lakh - ₹1 crore	18,400+
Aditya Birla	Activ One Plan	₹2 lakh - ₹6 crore	11,000+
HDFC ERGO	Optima Secure Plan	₹5 lakh - ₹2 crore	12,000+
Care Health	Supreme Plan	₹5 lakh - ₹1 crore	22,900+

Conclusion

Coming to the end, we certainly hope that now you don’t have any doubts regarding purchasing health insurance. It goes without saying that the rapid inflation rate has made health insurance a major necessity. 

This blog aims to make you understand all the benefits of buying a health insurance policy as well as discuss some great Government schemes and policy plans. However, do not forget to consult a professional health insurance advisor at  +91-7551196989 to understand all the policy terms thoroughly. 

FAQs

Ques 1. What factors should I consider when choosing a health insurance plan?

Ans. When choosing a health insurance plan, it is vital to first understand your needs. Whether you need individual coverage or family coverage. Moreover, other factors are also important, such as: 

• Coverage limit
• Premium amount
• Coverage benefits
• Network hospitals

Ques 2. I am a Government employee, which health insurance scheme should I purchase? 

Ans. You can opt for the Central Government Health Scheme (CGHS). Under the policy benefits, policyholders can get coverage for hospitalisation, homoeopathic treatments, free diagnostic services, etc.

Ques 3. Are health insurance policy premiums eligible for tax deduction?

Ans. Yes, health insurance policy premiums are eligible for tax deduction under Section 80D.

Ques 4. What is the health coverage under the Bhamasha Swasthya Bima Yojna scheme?

Ans. Under the Bhamasha Swasthya Bima Yojna scheme, policyholders are provided with health coverage of up to Rs 5 lakh for medical expenses.

Ques 5. What are the benefits of the CGHS scheme?

Ans. Under the CGHS policy benefits, policyholders can get coverage for hospitalisation, homoeopathic treatments, free diagnostic services, etc.