Why I thought buying a health insurance plan is not worth

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I am a 30-year old male who just received his big promotion last week. In my celebratory party I and my friend were discussing financial matters when my friend asked me about having a health insurance plan. I laughed at the mention of a health insurance plan. What benefit would a health insurance plan be for a young man like me?

Besides this point, I had various reasons why I thought buying a health insurance plan is not worth. Want to know my ill-conceived notions? Read on:

  • I was young and healthy and didn’t need the plan

I felt that a health insurance plan was needed in older ages when various health ailments gripped us. Till then buying a health insurance plan was useless. I was young and healthy. I had no existing ailments and my chances of contracting one were also slim. So, why should I buy a health insurance plan?

Where I was wrong – While  it was true that ailments gripped us in older ages, I did not foresee the possibility of an accidental injury. Accidents are uncertain and might result in serious hospitalization. Who would pay the medical bills then? Moreover, with increasing lifestyle ailments, the chances of me developing an ailment in younger ages were also high. If I avail cover at a young age I can get the benefit of exhaustive health insurance coverage without limitations. The issue of the waiting period also would be sorted for covering my pre-existing ailments..

  • I have already made arrangements for  emergency funds to meet any medical contingencies

I took pride in myself to be wise as I had created an emergency fund for unforeseen contingencies. Therefore, I thought that since I had an emergency fund, I didn’t need a separate health insurance plan. Any emergency medical contingency could be easily met by my emergency fund.

Where I was wrong –Though I had made arrangements for  emergency funds, was it sufficient to meet any medical contingency? Medical costs have gone through the roof and given the persisting rate of medical inflation, any serious injury would not only wipe out my emergency fund it, but it would also pose a threat to my finances. I didn’t understand this cost implication and considered a health plan to be unnecessary.

  • I considered health insurance premiums to be high and an additional expense

I knew that buying a health insurance plan would require me to pay regular premiums if I wanted to enjoy uninterrupted coverage. I considered this premium payment to be an additional expense which can be easily dispensed with. Moreover, I believed that the premiums charged by a health insurance plan were high. I did not want to pay such high premiums unnecessarily as I wouldn’t be falling ill anytime soon.

Where I went wrong –Though a health plan requires regular premiums, such premiums are minimal compared to the coverage benefits provided by the plan. A health plan guarantees financial security by meeting our medical expenses and safeguarding our finances. A small premium paid for this guarantee is not a waste. Moreover, health insurance premiums paid also qualify for tax exemption under Section 80D and save our tax liability.

I realized the error of my ways when my esteemed friend busted my ill-conceived notions. He put all my arguments to rest with his reasoning and I realized that a health insurance plan was a necessity. After the realization hit me I –

  • Researched the available health insurance plans
  • Compared the different plans on their coverage features, additional benefits and premium rates
  • Ensured to cover both myself and my wife
  • Bought a plan with an optimal level of Sum Insured suitable to my requirements
  • Did not skimp on the coverage for availing lower premiums and bought a comprehensive health plan.

I rectified my mistakes, what about you? If you also share any of my earlier sentiments and feel that a health plan is not worth, its time you lay your notions to rest. My friend advised me and I am, in turn, advising you. Find out the health plans available in the market, compare them and buy a policy with exhaustive coverage features. You would not only protect your finances from any sudden medical emergency, you would also get peace of mind.

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