Updated on - 11 Feb 2026
We’ve all heard the popular saying, ‘health is wealth.’ From working out in gyms to wellness retreats and maintaining healthy eating habits, staying fit has become a primary goal in our lives. While taking care of your health should be your top priority, it's also beneficial to stay prepared for the unexpected. And that’s why health advisors always recommend buying a health insurance policy as your second layer of defence.
Health insurance policies offer a range of plans that help protect you from the financial burden of medical emergencies. Here’s how.
How does health insurance help in protecting your savings?
Without insurance, paying medical bills on your own can quickly use up your hard-earned savings. Below are some key reasons why having a health insurance plan helps you save money during difficult times:
Covers your medical expenses
One of the most significant advantages of having a health insurance plan is that it covers you against unforeseen medical expenses in the event of an unexpected situation. With the right insurance plan, you don’t have to worry about any medical expenditure, be it post-hospitalisation expenses, ambulance charges, doctor’s fees, etc. This way, minor and major medical costs are handled without denting your savings.
Financial protection against critical illnesses
Almost every health insurer provides coverage against critical illnesses, such as cancer, kidney failure and stroke, either as part of the policy or as an add-on cover that can be added to your health insurance plan. In case you are diagnosed with any of these diseases as mentioned in the predetermined list of your policy, the insurance company will give you a lump sum amount to meet all your treatment costs and tackle other financial obligations.
Additionally, purchasing a policy at a young age will not only give you the benefit of lower premiums but also more comprehensive coverage and, hence, facilitate more savings if you’re struck by a malady.
No-claim bonus
Often, there are years when individuals do not claim any medical expenses. Hence, many insurance companies have introduced the benefit of ‘No-Claim Bonus’ for every claim-free year. It means that if an individual completes a year without claiming any medical expenses, they are awarded a no-claim bonus in the form of a discount on the premium amount for the next year.
Additionally, some companies offer an increase in the base insurance amount for every claim-free year. Not only does this keep the policyholders happy, but it also adds to their savings.
Tax benefits
Another way health insurance contributes towards greater savings is by offering tax benefits to the policyholders. If you are an individual under 60 years of age, you can claim tax benefits of up to Rs. 25,000 on paying health insurance premiums for yourself, your spouse and your children u/s 80D of the Income Tax Act, 1961. You can avail an additional tax deduction of Rs. 25,000 for paying health insurance premiums for your parents
Role of health insurance in emergency medical situations
Emergencies strike unexpectedly. Not only do these incidents induce emotional stress, but they also cause financial stress. Without insurance, families often borrow money or sell property to cover immediate hospital expenses.
That is how a health insurance plan can help in such times:
Cashless hospitalisation
Most insurance companies have hospital tie-ups where you can avail of cashless treatment. This implies that you do not need to arrange for money at the moment. The insurance pays the hospital directly, so you receive speedy treatment without any delay.
Aside from hospitalisation
Emergency care is not limited to hospitalisation. Most plans also cover ICU rates, ambulance fees and even follow-up visits. This keeps out-of-pocket expenses lower.
Access to quality care
In case of emergency, individuals desire the best hospitals and doctors, but the expense acts as an obstacle. With health insurance, you have the ability to opt for the treatment without worrying about the cost.
Financial readiness
Major treatments or operations cost lakhs. Uninsured families usually find it difficult to mobilise such huge sums. A health insurance plan keeps you financially ready in advance.
Tips to choose the right health insurance plan for maximum savings
As each family’s requirements are unique, selecting the right plan is crucial. The aim is to receive the maximum benefits for a reasonable premium. Here are some easy tips:
- Know your needs: Consider your age, family size and medical history. An individual health insurance plan may be enough for young individuals, while a family health insurance (family floater) plan can be more cost-effective if you have children or parents to cover.
- Look for sufficient coverage: Medical costs vary by city, so choose a sum insured that can cover treatments in your area.
- Look at inclusions and exclusions: Each policy comes with conditions. Certain treatments are not covered in the first year, and pre-existing illnesses may require a waiting period. It is important to go through the policy wording carefully to prevent surprises down the road.
- Large hospital network: Pick an insurer that has a large hospital network, so you have cashless facilities in various cities. This is extremely handy if you are a frequent traveller.
- Equate premium and benefits: A low premium may appear appealing, but it typically comes with minimal coverage. It’s better to opt for a slightly higher premium with improved protection.
Conclusion
Choosing the right health insurance plan is an investment in both your health and your peace of mind. It ensures that you and your family are financially protected when medical emergencies arise, allowing you to focus on recovery rather than stressing about costs. With the right coverage, you can plan for the future, safeguard your savings and make sure your loved ones are cared for in challenging times.
As you take steps to protect your health and secure your family’s future, let us guide you with the right plan tailored to your needs. Get personalised health insurance advice and solutions by filling out the form on this page.
FAQs
1. Is it better to buy a health insurance plan early?
Getting a health insurance plan earlier could help lower your premiums and offer coverage before potential health issues develop.
2. Can I cover my whole family under one plan?
Yes, you can choose a family health insurance plan. It covers your spouse, children and sometimes parents under one policy.
3. What if I don’t make a claim in a year?
You can get a No-Claim Bonus from your insurer. This may increase your coverage or reduce your premium.
4. Does every plan cover doctor visits and tests?
Not all policies include the outpatient department (OPD) cover. Always check the inclusions before purchasing a plan.
5. 8Is cashless treatment available at all hospitals?
Cashless treatment is only offered at network hospitals. Make sure your preferred hospital is in the insurer’s list.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.