Is Health Insurance Worth It to Buy?
Written by Dev Sethia
3 min read | Updated on December 09, 2025, 18:03 IST
As healthcare costs are still rising in India, many people still ask if health insurance is worth the price. While some people believe their youth or health protects them from illness, financial professionals and medical professionals say that rising medical inflation and unforeseen illness as health insurance a true safety net for protection.
A closer examination of the key components of health insurance shows us growth in importance for all ages.
Health insurance is a financial contract. An individual pays an insurance company a premium for the insurance, and in return, the insurer pays for the individual's medical treatment if/when needed, depending on the contract provisions.
The insurance policy essentially pays for part or all of the policyholder's medical treatment, which can include hospitalisation, doctor's visits, surgeries, prescription medications, and more. It serves to protect the individual from having to incur the full costs of medical service, which can be costly.
Advantages of Health Insurance
Financial Stability
Health treatments, especially in emergencies, can be excessively costly. Insurance guarantees that people do not have to spend their savings, sell investments or borrow money to address unexpected medical bills.
Peace of Mind for Families
The relief of knowing that they are provided for with significant medical expenses is worth a lot emotionally. Families do not need to think about how to pay for the money in a rush or delay treatment because of costs.
Access to Quality Medical Care
Health insurance gives policyholders access to timely, quality treatment without financial concern. Most plans will also ensure that treatment at network hospitals will be cashless and the process will be handled better during emergencies.
Is Health Insurance a Good Idea?
As more and more medical inflation occurs year on year in India, experts agree that health insurance is not just a good idea, it is a necessity.
Rising Healthcare Costs
Every year, medical expenses continue to increase due to better treatments, greater technology in the care of patients, and higher overall, operational costs associated with various facilities.
Unexpected Medical Events Affect Everyone
Everyone can be impacted by accidents, sudden illnesses, and chronic diseases, regardless of age. Insurance gives you peace of mind in relation to these sudden events and gives immediate financial support towards additional medical care, whether planned or unplanned.
Tax Benefits Under Section 80D
Premiums associated with health insurance can be deducted under Section 80D of the Income Tax Act. Insurance policies can help you reduce your taxable income by deducting the premiums you paid, for yourself and your spouse, and children and well as parents.
Financial advisors contend that health insurance is one of the most useful family investments to make. Financial protection combined with access to healthcare, tax benefits, and emotional well-being provides families with important financial planning in today's society.
Individuals who are not certain how to begin exploring options to ensure their family members speak to an insurer they trust or make an appointment with a financial advisor and ask which companies offer plans suitable to meet their age, health condition, and family insurance for the family.
FAQs
What types of health insurance plans?
Health insurance in India generally comes in the form of an individual plan, a family floater plan, a critical illness plan, or a group insurance plan. They can offer various levels of coverage beyond individuals and families, which can include specific illnesses and payments related to those conditions.
How do pre-existing conditions affect health insurance coverage in India?
Health insurance coverage in India will automatically exclude pre-existing conditions for up to 2-4 years with individual policies, not limited to but often involving higher premiums or exclusions because of a pre-existing condition.
Can policyholders switch health insurance providers in India?
Yes, health insurance policies offer switching, or holding policies with continuity of benefits that credit continued coverage before the transit. Policyholders must advise their insurer of the switch 45 days before their renewal.
Are there health insurance plans suitable for young and healthy individuals?
Young adults can choose affordable start or basic plans with broad coverage. Buying early secures low premiums and minimizes future waiting periods.
Do health insurance policies cover preventive care and health check-ups?
Any healthcare policy could include preventative care, more frequent health checks, annual check-ups, cancer screening, COVID-19 vaccinations (prevention), etc., if covered with a policy.
About Author
Dev Sethia
Sub-Editor
a journalism post-graduate from ACJ-Bloomberg with over three years of experience covering financial and business stories. At Upstox, he writes on capital markets and personal finance, with a keen focus on the stock market, companies, and multimedia reporting. When he’s not writing, you’ll find him on the cricket pitch
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Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.