6 Proven Ways to Protect Your Savings with A Health Insurance

Today, every smart investor purchases a robust health insurance policy to get protection against various illnesses and keep their savings intact. Read on to know more about how a health insurance policy can protect your savings.

‘Health is the greatest wealth’ is a popular adage. Today, with the growing awareness about the importance of being physically fit, millions of people abide by this life mantra. From going to the gyms and maintaining a healthy diet, people try different techniques to stay fit. While trying to keep fit and healthy must be your priority, you must be sufficiently prepared to face any unexpected medical emergency. And that’s why many health experts and even financial advisors recommend buying a health insurance policy.

A healthcare plan plays a critical role in giving you a financial cushion against the hefty medical bills. It also helps you keep your years of hard-earned savings safe. Apart from covering the hospitalisation expenses, health insurance plans offer a wide range of other benefits and facilitate savings during a medical emergency.

1. Covers all the medical expenses

Source: NFCC.org

If you have any senior members in the family, a medical emergency can occur at any time, especially in the present day, where everyone is vulnerable to the COVID-19 virus. In such a situation, the last thing you would want to worry about is making arrangements for funds to meet the medical expenses. This is where medical health insurance is critical; it helps you get coverage against the unforeseen medical cost.

With health insurance by your side, you need not worry about breaking your savings; the insurer will cover most of the expenses, including pre-hospitalisation and post-hospitalisation charges, ambulance charges, and doctor’s consultation fee. Thus, a health insurance policy offers you 360-degree health protection for you and your loved ones.

2. Protection against critical illnesses

Source: Medium

Today, almost every insurance company in India provides coverage against critical conditions such as cancer, stroke, kidney failure, etc. either as a part of the policy or as an add-on cover. Suppose you or any of the family members are diagnosed with any critical illness included in the predetermined list of diseases mentioned in the policy. In that case, the insurance company will cover the full medical expenses. The treatment cost for such illnesses can run into several lakhs. Thus, with health insurance on your side, you can meet the expenses without touching your savings.

But, to get sufficient coverage, you must choose the right health insurance plan with a high sum assured. Rather than waiting for any illness to strike, it is prudent to be proactive and purchase a plan beforehand and be prepared for the future. Additionally, buying a policy at a young age allows you to get the coverage at a lower premium, and you can save a significant amount on the premium payments.

3. Cashless Claim Facility

Source: BenefitsPRO

While you or any of your family members are undergoing treatment at the hospital, you may find it challenging to arrange funds for paying the hospital bills. To help you avoid such stressful situations, almost all the reputed insurance companies in India provide a cashless claim facility at the network hospital.

This means you can get the best medical care you want without worry about your finances and depleting your savings. All you must do is fill a cashless Mediclaim form and submit the necessary bills and receipts at the hospital to support the claim amount. The insurance company will directly settle the bill with the hospital. You need not pay a single penny from your pocket.

When you purchase a policy, it will help to look at the list of network hospitals located in your vicinity so that you need not go through the last-minute hassles during an emergency.

4. Medical Check-ups

Source: Orthopedic health tips

Apart from covering the hospitalisation expenses, the insurance companies offer free health check-ups to the policyholders. It is an excellent way to get a full health check-up done to know about your medical condition and detect any underlying illness that could become serious and get immediate treatment for the same. Thus, it helps you prevent incurring any major expenses.

5. Tax Benefits

Source: Bite Of News

Another significant way in which health insurance policies contribute towards your savings is by offering tax benefits. Like a life insurance policy, the premium paid for medical insurance qualifies for tax benefit under Section 80D of the Indian Income Tax Act, 1969.

If you are aged less than 60 years, you can claim tax benefits up to Rs. 25,000 on the premium paid for yourself, spouse, and children. You can avail of an additional tax benefit of Rs. 25,000 for paying the premium for your old-aged parents who are aged more than 60 years.

Thus, you can claim a tax deduction up to Rs. 50,000 in a financial year and reduce your tax liability.

6. No-Claim Bonus


No-claim bonus or NCB is essentially a reward offered by the insurance companies to the policyholders for not filing a single claim during a policy year. The reward is generally in the form of a discount on the premium, which can be redeemed during renewal.

When you buy a health insurance policy at a young age, you may be healthy and fit, and you may not feel the need to file a claim. This means you are eligible to get the NCB. And if you continue to not file a claim for subsequent years, the NCB keeps accumulating. So, if you have earned bonus points, you can use the same to lower your premium during renewal and get valuable savings.

If you compare NCB from different insurance companies in India, you will find that the best health insurance from HDFC ERGO offers you NCB as high as 50%. This means you can get up to 50% discount on your premium if you have not filed a claim for five consecutive years.

Additionally, some insurance companies offer to increase the sum assured amount for each claim-free year. Not only does this help you get wider coverage, but it also adds to your savings.

Final Word

Now that you are aware of the amazing benefits of a health insurance policy and how it can help you protect your savings, it is high time that you buy a robust health cover and give your family the protection they deserve.