In 2025, healthcare costs are rising faster than the inflation rate. A single hospitalisation rate for an accident or serious illness costs between ₹1 lakh to ₹10 lakh, depending on the hospital and treatment required. If you do not have health insurance, you will drain your savings or take a loan. Health insurance plays a crucial role in protecting you from these sudden and high medical costs. Along with financial security, it also provides access to quality treatment without compromising on care. In this blog, we will explore the top reasons to buy health insurance plans.
Understanding Health Insurance
Health Insurance is a financial net that protects you from rising medical costs. It works on a simple principle, i.e, you pay the premium to a health insurance company and in return you get adequate coverage. The coverage includes costs related to hospitalisation, surgeries, medicines, diagnostic tests, preventive health check-ups and much more.
By having a health insurance policy, you can focus on recovery without worrying about hospital bills. Most of the best health insurance companies provide cashless treatment at network hospitals. It means you don’t need to pay upfront, and the directly settles the bill with the hospital. If you go to a non-network hospital, you can still get reimbursed for the expenses incurred.
Health insurance Policy can also extend the protection to your spouse, children, and parents through a family health insurance plan or senior citizen health plans. Apart from providing financial protection, it also offers tax benefits under Section 80D of the Income Tax Act, 1961. You can claim deductions on premiums paid for yourself, your family, and even your parents, helping you save more while securing health protection.
Top Reasons To Have Health Insurance in 2025
Medical Emergencies are unexpected, and getting health insurance plans will help you feel financially strong to handle such situations. Here are strong reasons that you must opt for a medical insurance policy in 2025:
Financial Coverage
A health insurance plan gives you strong financial support during emergencies. Treatment for illnesses like cancer or heart disease is costly and can drain savings. With health insurance, you get adequate coverage for hospitalisation, diagnosis, medicines, and even ambulance costs, which helps you manage expenses in India and abroad.
Rising Inflation
Healthcare costs are rising much faster than regular inflation. Medical procedures, medicines, and hospital equipment are becoming expensive. A health insurance plan helps you stay financially prepared for such situations and ensures you receive quality care without worrying about affordability.
Tax Benefits
Your health insurance premium also reduces your tax burden. Under Section 80D, you can claim deductions of up to ₹25,000 on the premium paid for yourself, your spouse, or your children. It is a dual advantage of financial security and tax savings.
Affordable Premiums
If you buy health insurance early, you enjoy lower premiums. Younger individuals usually don’t need mandatory health check-ups, and it is easy for them to secure policies at affordable rates.
Changing Lifestyles
Modern lifestyles often lead to chronic health issues like diabetes, hypertension, and heart disease. Health insurance ensures you’re prepared for these conditions with timely treatment and financial support.
Reliable Backup
In case you have savings, the cost of treating critical illnesses can exhaust them. Health insurance acts as a reliable backup, covering hefty medical bills and protecting your long-term savings.
Wider Access to Quality Care
With health insurance, you get access to a network of hospitals offering cashless treatments. This means you can focus on recovery while your insurer takes care of the bills, giving you peace of mind during stressful times.
Family Protection
Family health Insurance plans allow you to cover your spouse, children, or even parents under one policy. It’s a practical way to protect your loved ones from unexpected health expenses without juggling multiple policies.
Coverage for Preventive Care
Many health insurance plans cover preventive health check-ups that help you detect potential health risks early and ensure timely treatment and better long-term health management.
Common Mistakes While Purchasing a Health Insurance Policy
Health insurance is a great financial tool that protects you from rising medical costs. Regardless of its importance, many people make common mistakes that lead to claim rejection. Understanding these common pitfalls helps you to make an informed decision.
Not Assessing Your Coverage Needs
A common mistake that most people make is not assessing their medical insurance coverage needs. Attractive offers and low premium amounts may easily make your final decisions without, but make sure the health plan covers your particular needs. Your health insurance should sync with your current medical requirements, family history, and possible future healthcare needs. To prevent this pitfall, begin by analysing your present health condition, lifestyle, age, and pre-existing conditions, if any.
Overlooking Fine Print
Overseeing the fine print is another mistake people make. The terms and conditions of a policy hold vital information about its coverage and exclusions. Most health insurance problems arise because you don’t know about the limits, exclusions, and specific conditions of their plans. So, before finalising your health insurance policy, go through the paperwork and ensure you read the fine print too.
Not Checking the Insurer’s Claim Settlement Ratio
The claim settlement ratio of an insurance company is an important factor to consider. This ratio indicates the percentage of claims settled by the insurer out of the total claims received. Ignoring this metric can lead to bad experiences during the claim process. Opting for a company with a strong track record ensures that you will not face unnecessary hurdles when filing a claim, reducing the risk of medicare mistakes.
Ignoring Additional Benefits
Many health insurance policies offer additional benefits, such as wellness programs, preventive health check-ups, and coverage for alternative treatments. Not considering these extra features can be a missed opportunity to maximise the value of your policy. Understanding health insurance myths and facts about additional benefits can help you choose a plan that covers medical expenses and supports your long-term health goals.
Final Thoughts
In 2025, health insurance is a necessity to safeguard your finances against rising healthcare costs. Beyond covering unexpected medical bills, it provides peace of mind, access to quality treatment, and valuable tax benefits under Section 80D. However, choosing the right plan is crucial. This is where Niva Bupa Health Insurance stands out with its wide range of comprehensive health plans, high claim settlement ratio, and an extensive hospital network offering cashless treatment.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
