Top 5 Reasons Why Investing in Health Insurance is Beneficial


Medically reviewed by

Bajaj Finserv Health

Aarogya Care

4 min read

Key Takeaways

  • Health insurance investments offer protection and help you save money
  • Investing in health insurance gives you tax deduction benefits too
  • Invest in family floater plans to cover your family’s medical needs

Investments help you plan your finances and work towards a better future and life. So does investing in health insurance. It helps in tackling unexpected or planned medical expenses with ease. That’s not all. Investing in family floater plans or individual policies for each member safeguards your family’s health too. Investment in health insurance has become a necessity now, considering the growing incidence of lifestyle diseases and the rising medical costs that follow. Health insurance protects both your health and savings.

When planning your annual investment, health insurance policy should be on the top of your list. While there is no bad time to get the cover you need, investing in health insurance at a young age can be very beneficial. Read on to find out why you should consider medical insurance with investments of other varieties that you may have lined up in your financial portfolio.  

Investment in health insurance is a smart financial move 

Apart from the known benefit of providing medical cover in emergencies, investing in health insurance is an important part of financial planning. While other investments protect you financially, health insurance investments put you one step ahead. People often fall for the myth that health insurance is for older people. However, diseases come uninvited at any age.

According to the World Health Organization, a sedentary lifestyle including lack of exercise, tobacco smoking and poor diet leads to a wide range of diseases [1]. The present generation is a victim of both a sedentary lifestyle and poor health [2]. Thus, buying health insurance at a young age offers you loads of benefits. You get insurance at lower premiums, there are no medical check-up needed for buying policy, and you can enjoy the benefit of the No Claims Bonus with time.

Additional Read: Need of Health Insurance: Top Reasons Why Term Insurance Isn’t Enough 

reasons to invest in health insurance

You get tax benefits on health insurance investments 

Health insurance with investment objectives also helps you in saving money on tax. You can claim a tax deduction on premiums paid towards health insurance under Section 80D of Income Tax Act 1961 [3]. Thus, investing in health insurance allows you to work towards financial stability. 

Investing in health insurance protects your family 

Going for financial investments to safeguard your family’s interests? Getting a medical insurance plan is no different. While individual policies cover the insured, you can also opt for family floater plans. Such policies cover the medical expenses of your entire family with a single sum assured, that all beneficiaries can use. The protection provided by family floater plans leave you with one less thing to worry about.

Health insurance helps tackle inflation 

It is no secret that inflation is rising. However, medical inflation is surging even higher. On the other side, there’s an increase in lifestyle diseases. Health insurance policies are designed in such a way that they protect you and your family against future medical exigencies. When you take a cover of a higher value, you can address these needs with ease.

[caption id="attachment_5699" align="aligncenter" width="1920"] Health Care Doctor Help Concept[/caption]

Investing in health insurance helps cover a range of needs   

Borrowers are often under the misconception that investment in health insurance covers only hospitalization expenses. However, this is not true. Health insurance policies cover pre- and post-hospitalizations costs along with hospitalization bills. Certain health insurance policies cover medical bills including domiciliary treatment expenses, ambulance service costs, maternity care expenses, and daycare costs. In some cases, health insurance providers cover diagnostic expenses too.

If you are looking to build wealth and protect your health, you can opt for a health unit-linked insurance plan. It is a combination of an investment and a health insurance policy that provides medical insurance with investment. The IRDA has laid down certain rules and regulations in case of health ULIPs to safeguard the interest of policyholders [4]. However, these plans may come with certain restrictions on claims.

Additional Read: Why is It Important to Choose the Right Health Insurance Plans for a Family?

Investing in health insurance has a lot of benefits. It gives you lifetime renewability options, offers cumulative bonuses, and protects your savings. Since the benefits of health plans differ, put some time and effort into choosing budget-friendly policies. Consider the numerous Aarogya Care plans on Bajaj Finserv Health to safeguard yourself and your family at affordable premiums. This way you can march towards a better health and future for you and your family.

Published on 18 Aug 2021Last updated on 9 Feb 2023

Please note that this article is solely meant for informational purposes and Bajaj Finserv Health Limited (“BFHL”) does not shoulder any responsibility of the views/advice/information expressed/given by the writer/reviewer/originator. This article should not be considered as a substitute for any medical advice, diagnosis or treatment. Always consult with your trusted physician/qualified healthcare professional to evaluate your medical condition. The above article has been reviewed by a qualified doctor and BFHL is not responsible for any damages for any information or services provided by any third party.


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