The Importance of Having Health Insurance in Today’s World
Written by Dev Sethia
3 min read | Updated on December 09, 2025, 18:10 IST
As medical costs continue to rise, experts caution that health insurance is no longer a choice but an important mechanism to safeguard against rising healthcare costs.
As treatment costs rise rapidly, including hospitalisation, surgery, diagnostics and emergency care, families without insurance find it difficult to deal with unexpected medical expenses.
Thus, health insurance is becoming an essential conduit to protect economic health and access quality healthcare in a timely manner.
Industry observers note that more individuals are moving toward comprehensive health insurance products that provide financial relief and assurance as a result of increases in the rates of lifestyle diseases and the costs of hospitalisation.
Financial Protection and Long-Term Stability
Health insurance serves mainly as a financial backstop, covering expenses that would otherwise lead to depleting personal savings or causing families to go into debt.
Dealing With Rising Costs
Medical inflation is up annually causing a treatment deem affordable to become an expense that is exorbitant. Insurance exists to help mitigate these expenses so that there is no financial pressure on families.
Protecting Savings
Without insurance, unexpected medical emergencies may lead families to spend from their long-term savings to fund their children's education, retirement savings, or save for a home purchase.
Comprehensive Coverage
Today's health insurance plans generally cover hospitalisation, surgery, prescription medicines, ambulance fees, and pre or post-hospitalisation care expenses.
Coverage in Emergencies:
In emergencies, we have complete and immediate coverage for medical services, without the worry of delay due to how to fund those services.
Access to Quality Healthcare With Low Financial Risk
Having health insurance will not only insulate you from financial stress but also provide you with improved healthcare because you can access high-quality medical care.
- Ensuring High-Quality Treatment
Insured patients have the ability to access the best medical care and the most qualified specialists without worrying about the cost. This ensures better and faster treatment.
- Cashless Treatment at Network Hospitals
Emergency ambulance & hospital services are cashless at the network hospitals. Insurers will pay hospitals directly, giving patients and family peace of mind and a focus solely on treatment without arranging payment.
- Preventive Health Care Benefits
Most policies are now including annual health check-ups which allow earlier diagnosis to prevent a place where the patient may start having complications. Preventive screening can improve patient care and services while also reducing costs in the future.
- Coverage for Daycare Procedures
With the increase in daycare treatment coverage in the insurance plans, many patients or their loved ones can receive minor surgical, therapy, or diagnostic procedures in an affordable, cost-effective manner.
Other Benefits of Health Insurance
Health insurance not only provides financial and medical benefits, but it also provides emotional security and wellness over the long term for families.
Protecting Family Health
Comprehensive coverage allows you to feel confident and reassured that your family is safe from medical surprises and that you are enhancing your family's long-term wellness.
Tax Benefits on Premiums
Premiums and payments for health insurance may qualify for a tax deduction, providing even more savings. Such savings, provided pursuant to tax provisions such as Section 80D, can greatly reduce your annual tax liability.
Promotes a Preventive Lifestyle
Health insurance, because it covers routine visits and preventative care, encourages people to maintain regular health visits. The earlier a disease is detected, the more likely it is to be treated successfully and a healthy lifestyle is enhanced.
Amid rising medical costs and increasing health risks, professionals convey that health insurance is a necessity today. Health insurance offers financial protection, patient access to timely and beneficial treatment, and prevents families from the emotional and financial distress of medical emergencies.
Health insurance covers a range of health-related costs, is a catalyst for preventative health care, and provides tax advantages, making it a health and financial asset.
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.