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Top 10 Benefits of Health Insurance in India 2023.

Benefits of Health Insurance



In my latest blog post, “Top 10 Benefits of Health Insurance in India 2023”, we delve into invaluable advantages that health insurance brings to the forefront.


From financial security during medical emergencies to comprehensive coverage for a spectrum of healthcare needs.


This article explores how investing in health insurance is an investment in your well-being. Health insurance safeguards your health, finances and peace of mind in the ever-evolving healthcare scenario of India in 2023.



What is the importance of a Health Insurance Plan?

Benefits of Health Insurance
Health Insurance  Benefits for Family


While saving and investments are major parts of it, the importance of health insurance cannot be ignored. If there is a medical emergency in the family, you might have to give up on your savings or investments. Individual health insurance plans and family health insurance plans protect you from such eventualities.


Health Insurance is not just a cost-effective way to manage medical treatment. It also gives you bigger coverage with every year you do not claim. ICICI Pru Heart/Cancer Protect provides a 10% increase in sum assured if it is a claim policy year.


Top 10 Benefits of Health Insurance Plans for individuals & family members: -


1. Fight Lifestyle Diseases: -


Lifestyle diseases are today rising, especially among people under the age of 45. Illnesses like diabetes, obesity, respiratory, and heart diseases are common in the world. 


Some of the contributing factors that lead to these diseases are pollution, unhealthy eating habits, gadget addiction and stressful life.


But opting for an Investment in a health insurance plan that covers regular Medical tests can help catch illness early make it easier to take care of medical expenses and leave you less worried about the disease. Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.


2. Health Insurance safeguard your family: -


The ideal health insurance plan is which you choose for your entire family under the same policy. Considering your ageing parents, who are likely to be vulnerable to illness as well as the dependent children. 


Health insurance plans ensure the best medical treatment as and when required for any type of medical help. Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.


3. Health insurance counter inadequate health plan:-




If you have taken a health insurance policy provided by the employer, you must check exactly what it protects you against and how much coverage it offers. 


If your current policy does not provide cover against possible threats of diseases or illnesses that run in the family.


 Here you can have a higher sum assured can ensure your every medical need is taken care of financially.


4. Deal with medical treatment inflation: -


Medical technology improves and diseases also increase day by day. The cost of treatment rises as well day by day. The medical expenses relate to pre-medical treatment as well as after-medical treatment, which requires huge monetary expenses. 


The costs for doctor's consultations, diagnosis tests, ambulance charges, operation theatre costs, medicines, room rent, etc. are also continually increasing day by day in this world.


All of these could put a considerable strain on your finances if you are not taking an adequate health insurance policy. By paying a relatively affordable health insurance premium each year, you can beat the burden of medical inflation while opting for quality treatment at the best hospital in your town.


 5. Health Insurance policy also protects your savings:-


The time of unforeseen illness can lead to mental anguish and stress, there is another side to dealing with health conditions that can leave you drained of the financial expenses.


 With good health insurance plans, you manage medical expenditures without losing hard-earned savings. Some of the health insurance plans are cashless treatment. Here it is so good to avail yourself of good health insurance plans for saving money.


Your hard-earned money savings can be used for buying a home, your child's education and retirement purposes. The health insurance plans avail the tax benefit to the individuals, which further increases the savings.


It is always better to take the right health insurance policy not only to protect you but also to protect your whole family as well.


6. Health Insurance plans are insured early to stay secure: -


Investing in health insurance early in life has numerous benefits. If you are young and healthier, you can avail of the plans at lower rates and you will get good advantages which will give grow in future. Additionally, you will be offered more extensive coverage options in your health insurance plan.

Benefits of Health Insurance


 Most policies have a pre-existing waiting period, which excludes coverage of pre-existing illnesses. If you are at a young age, avail yourself of health insurance plans,  that give you more advantages of exhaustive coverage that will be useful in your later life. 


A healthy insurance plan is very essential requirement in everybody’s life. It protect yourself and your loved ones from any eventual, that could leave you financially handicapped is a must.


 Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.


 7. Cash Less Benefits to policyholders: -


Many insurance provide offer cashless claim facilities. In such an arrangement you do not make out-of-pocket payments. In the cashless benefit scheme, the hospitalization expenses are settled between the insurer company and the hospital.


The hospitalization expenses are settled between your insurer and the hospital. To avail of this benefit, it is imperative to get admitted to any of the insurer network hospitals. 


You have to fill out a pre-authorization form and display your health insurance card to enjoy the cashless facility. Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.


 8. Health Insurance policy gives you Tax benefits: -


All Health insurance policies provide tax benefits. The premium paid towards your health care policy is eligible for tax deduction under Section 80D of the Income Tax Act, 1961. The quantum of the deduction is as given below:-


  1. In the case of the individual Rs. 25,000 for himself or his family.

2. If an Individual or spouse is 60 years of age or older the deduction available is Rs. 50,000.

3. An additional deduction for insurance of parents (father or mother or both, whether dependent or not is available to the extent of Rs. 25,000 if less than Rs. 25000.if the age is 60 years or less.

4. For uninsured super senior citizens (80 years or more) medical expenditure required Rs. 50,000shall be allowed.


9.TakeHealth insurance policy as early to stay secure:-


Purchasing a good health insurance policy at an early age has numerous benefits. Since you are young and healthy, you can also take advantage of purchasing health insurance plans at a very early age, which will give more benefits in the older age. 


Most health policies have a pre-existing waiting period which excludes coverage of pre-existing illnesses. This period will end when you 

are still young and healthy, thus it gives you the advantages of coverage that will prove useful if you are ill later in life. 


Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.



10. Covers Pre-hospitalization and post-hospitalization: -




A health insurance plan covers the medical expenses incurred by you in pre-hospitalization and post-hospitalisation benefits. Once you are insured some Health insurance plans give benefits to policyholders.


Your pre-determined sum insured covers the medical bills generated 30 to 60 days before your discharge from the hospital. The coverage of your health insurance plans depends on the choice of health insurance you choose for you or your family members.


 Hence investment in health insurance plans protects us financially and many diseases are cured in time at the hospital.




1. Question: Why is Personal health insurance important nowadays?


1. Health insurance provides risk coverage against expenditures caused by any unforeseen medical emergencies. In current times of high medical inflation rates, failing to hold an adequate amount of health insurance coverage can prove to be a major personal finance disaster.


2. Question:-What is group Insurance? What are the advantages of Group Insurance?


2. Answer Insurance health plans provide coverage to a group of members, usually compared to company employees or members of an organisation. In the Group insurance policy members usually receive insurance at a very reduced cost, because the insurer's risk is spread across the group policyholders. 


3. Question:-Which is the No1 Health Insurance Plan in India?


3. Answer:-HDFC Ergo Health Insurance and Apollo Munich Health Insurance are the most branded Health Insurance Companies in India.


4. Question:-What are the examples of Health Insurance?


4. Answer:-Health insurance includes doctor’s service, inpatient and outpatient care, prescription drug coverage, pregnancy, childbirth mental health services and many more.


5. Question:-how many people have no Health Insurance plan all over the world?


5. Answer:-In 2020 there are 31.6 million (9.7%) people of all ages have no Health Insurance.


6. Question:-What is the difference between Health Insurance and Mediclaim?


6. Answer mediclaim policy covers the cost of hospitalisation. It may cover the treatment of specified illnesses to a particular limit. A Health Insurance policy, on the other hand, is more broad-based.


7. Question: - What is the age limit of a Medical Insurance Policy?


7. Answer: - According to the Insurance Regulatory Development Authority of INDIA, (IRDAI) any person up to the age of 65 years of age can get health insurance policies available for individuals aged between 65 and 80 years of age.


8. Question:-How many Private Health Insurance companies are in INDIA?

8. Answer:-There are 28 private health Insurance companies in INDIA.


9. Question:-Who started Health insurance in India?


9.Answer:-In 1986,” Mediclaim” was first started by the Indian Government, it offered minimum and maximum health coverage of Rs. 15000 and a maximum of Rs. 5,00,000.


10. Question:-What percentage of Indian people is covered under the Health Insurance plan today?


10. Answer:-Overall 35% of the Health Insurance in India is covered in the year 2019.





The market size of the Health & Medical Insurance sector was about 370 billion Indian rupees in the financial year 2018. This was projected to cross Over two trillion by the financial year 2030.


The market size of the Health and Medical Insurance industry in the US has grown nearly 3% per year on average between 2017 and 2022.


In India, only 1.1 billion of the Indian population, which is less than 15% of the Indian population, is covered through health insurance.


As per WHO statistics 31% and 47% of the hospitalisation in urban and rural areas in India are either financed by loans through the sale of assets or for hospitalisation, which is extremely sorrowful.













About Author

Ajay Kumar Patra is a highly experienced and accomplished accounts and taxation professional with over 27 years of experience in the industry. He is a Post graduate in Commerce (M. Com) from Sambalpur University with First Class and MBA-Finance with First Class from Jaipur National University....
He has worked with several large manufacturing units in India in various capacities. His last portfolio was (G.M) Finance & Accounts in large Steel Manufacturing Industry in Odisha. He Quit his job in the year May-2021.

Professional Content Writer: -
He is also a professional content writer and has published over 150 articles on business, finance, startups, e-commerce, and tourism. In 2021.All article you can see in the website
Content Writer
In addition to his professional work, Ajay is also a passionate content writer. He has published over 150 articles on business, finance, startups, e-commerce, and tourism. His articles are well-researched and informative, and they have been read by millions of people around the world. Ajay is also a regular contributor to several leading publications. He always published his own article in his website
Tax Consultant:
He is also Founder & CEO of own Tax consultancy firm, “Ajay Tax Consultant:, in Bhubaneswar, Odisha. Which has been started in the year 2021 with give best services to individuals and Business owner like Income Tax, GST. PAN, DSC, TDS with New company Registration with Insurance facilities to clients of PAN INDIA. You can visit website”” to know more.

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About Us

Ajay Kumar Patra is a highly experienced and accomplished accounts and taxation professional with over 27 years of experience in the industry.