Question

Explain the importance of health insurance.

Answer 1

1. By paying a small premium, the insured person gets coverage for the heavy costs involved in hospitalisation for serious diseases like heart attack, brain tumours, cancer, kidney failure, etc.
2. The premium paid for health insurance is allowed as a deduction (up to the specified amount) from taxable income under the Income-tax Act.
3. In cases of sudden hospitalisation, the insured and his/her family are saved from heavy expenditure.
4. Health insurance contributes significantly to the economic development of the country by making the people of the country healthy.
5. The health insurance industry provides protection for social development.