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Pitfalls of Not Buying Health Insurance Plan - Reasons

Team AckoJul 22, 2021

Health insurance might not be mandatory. However, the consequences of not buying a health insurance plan for you and your family can have devastating effects on your finances. The recent coronavirus pandemic is an excellent example of how it has pushed patients or dependents to the brink of debt due to the soaring cost of getting high-quality healthcare treatment.

Medical insurance is a necessity and not a luxury. That is why new-age digital insurance companies such as ACKO strive hard to provide a paperless and hassle-free experience, making it easier for customers to buy, renew policies and raise claims. The online health insurance policy method of insuring is the future as it offers convenience, speed, and immediate resolutions to your queries.

The article provides an insight into the disadvantages of not securing yourself and your family with a health insurance plan.

Consequences of Not Buying Health Insurance Plan

Reasons People Don’t Buy Health Insurance Plan

Despite being a lifesaver, people do not invest in health insurance policies due to a lack of awareness of its benefits. Here are some of the reasons why people skip buying a medical insurance policy.

Lack of Awareness

The traditional method of buying health insurance is tedious and difficult to understand, thanks to numerous paperwork and complex terms and conditions. Add to that are the agents, leaving you confused about the right plan.

As medical insurance is not mandatory in India, people do not consider it vital to them and their families. They want returns for their investment. Since health insurance benefits are invisible, people consider it futile to invest in health insurance.

With rising healthcare costs and how the recent Covid-19 pandemic has dealt a blow to the finances of those affected by the high prices, it is prudent to invest in a health insurance plan.

Half-hearted Approach to Health

Young adults, especially salaried individuals, tend to delay their investment in a health insurance plan. While young adults are fitter and healthier than older people, health care during emergencies such as a pandemic or an accident is required by the young and old alike.

While an employer may provide group medical insurance coverage, that is non-customisable, a customisable individual health insurance plan will certainly come to your rescue if you are laid off from your job when you do not have health insurance to back you during unplanned hospitalisation.

Whether you are young, old, or have a family, it is crucial to secure your finances with a robust health insurance plan as it comes to your rescue during emergencies.

Myths About Affordability

Health insurance requires payment of premiums regularly. It can be yearly or monthly. Several people feel they cannot afford to pay premiums regularly that do not provide any returns. This can be counterproductive since health insurance certainly comes to your rescue during hospitalisation, whether for a minor or major treatment.

Modern digital insurers such as ACKO provide affordable health insurance plans along with a seamless experience while buying, renewing policies, or raising claims. Since all transactions are on the digital platform, the process is much faster and easier than traditional methods.

With a digital infrastructure and a direct-to-customer model, operational costs are reduced considerably, enabling ACKO to design affordable and comprehensive health insurance plans.

Consequences of Not Buying Health Insurance Plan

Uninsured people suffer significant financial and health consequences as a result of not having health insurance. While there is no rule that you should buy health insurance compulsorily, the risk of being uninsured is significant. Here are the risks involved in not securing yourself and your family with a health insurance policy.

High Health Care Expenses

Without the coverage of medical insurance, an unplanned hospitalisation or a severe accident that requires an expensive treatment plan and/or emergency care can result in high health care expenses. An accident or a cancer diagnosis, or even a broken limb can cost thousands of rupees out-of-pocket.

With a massive medical bill, you are less likely to save money and more susceptible to a huge debt. It can lead to foregoing necessities and even borrowing money to pay for the medical bill or fund the debt.

Unable to Afford Needed Medication

Because of rising medicine and health care prices, several treatments or medications are incredibly expensive, especially without a health insurance policy to cover the expenses. There are chances that you may defer the treatment or choose lower-cost medical treatment.

Yours and your family’s health is essential; hence, you must secure it with a health insurance plan so that you do not miss out on high-quality health care and medications. Health insurance will protect you financially against high health care costs and drugs required for both planned and unplanned hospitalisation.

Worried About Unforeseen Illness

While you may have control over planned hospitalisation, unplanned hospitalisation due to an unforeseen illness or an accident can severely impact your finances. It is better to be prepared than worry about it when you have to seek medical care without any financial protection of a health insurance plan.

By securing yourself and your family with health insurance, you can be assured that you are financially protected against an unforeseen illness or even a pandemic such as Covid-19.

Loss of Savings

The government encourages people to buy health insurance policies and provides them with tax exemption on the premiums. By not purchasing a health insurance plan, you could potentially lose your hard-earned money as income tax.

By investing in a health insurance plan, you can claim tax benefits under Section 80D of the Income Tax Act, thereby saving you money.

Conclusion

Health care is expensive even if you have a health insurance policy. However, those who skip buying a health insurance policy will be at a much more significant disadvantage. The inability to get treatment for health conditions and the massive medical costs are two of the biggest reasons for you to secure yourself and your family with a health insurance plan.

Frequently Asked Questions

Here are some of the frequently asked questions about health insurance plans.

Should I get a second health insurance plan even though my family and I are covered under a corporate health insurance plan?

It is recommended that you buy a second health insurance plan so that you are covered if you lose the job and do not have health insurance to cover you in case of hospitalisation.

How do I get an affordable health insurance plan?

Digital insurance companies such as ACKO are using technology and innovations to simplify health insurance. Since there are no agents, there is no commission, and due to the digital infrastructure, operational costs are really low. Hence, ACKO can design low-cost health insurance plans and pass on the savings to you.

What is the eligibility to buy a health insurance policy?

To avail health insurance for you and your family, the minimum age for the policyholder and adult dependents varies between 18 and 21 years and a maximum of 60 to 100 years, depending on the plan. As for children, the entry age starts from 90 days to 18 or 25 years.

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