A significant question for anyone buying a health insurance policy is, “Is insurance worth the money?” or “Is insurance an asset or expense?” Some argue for its necessity, while others believe it is better to be prepared. This blog will evaluate whether and how insurance is relevant to people in India.
Keep reading to learn about the various aspects of health insurance and to understand whether insurance is an asset or an expense.
The basic step to knowing whether health insurance is an asset or an expense is to understand what health insurance means. Health insurance acts as a contract between the insurance company and the policyholder, providing financial coverage for the medical expenses incurred during an illness or injury.
The mechanism of health insurance is that the policyholder pays a fixed amount as a premium on a monthly, quarterly, or annual basis, in exchange for which the insurance company provides financial coverage against the medical expenses incurred.
There is a wide variety of health insurance policies to choose from that best suit your needs. Insurance policies help you avail yourself of quality services with peace of mind.
Typically, an insurance policy covers a wide range of expenses, such as:
The insurance company covers your medical expenses primarily through one of the 2 available methods:
Rising medical care costs have made health insurance essential. Moreover, our hectic lifestyle only makes things worse for our health. Since health emergencies are becoming more unpredictable daily, getting health insurance as early as possible is advised.
The primary key groups that benefit from having health insurance include:
Health insurance has several benefits, not just the medical benefits everyone knows about. Some of the key benefits include:
At Star Health, we offer extensive coverage for various health conditions under our insurance policies, specially tailored to your needs. We also provide hassle-free claim settlements with reduced turnaround time across over 14,000 network hospitals in India.
After understanding the benefits of health insurance, the original question remains, “Is insurance an expense?” There seems to be no straightforward answer. However, it can be stated clearly that health insurance is a necessary expense. The reasons include:
Whether health insurance is an expense or an asset is debatable; however, it is certainly an expense that becomes an asset over time.
We’re Star Health. We offer the coverage that’s designed to help keep you healthy. It's the care that comes to you, and stays with you.