Health Insurance: Importance and misconceptions
Health Insurance is nowadays a dire need for every person in Bangladesh. Covid-19 pandemic has taught us a lesson that any person may require medical attention anytime without prior notice and it may drain out all of your savings in a blink of eye. According to a survey, every year 6% people in Bangladesh goes under poverty line due to healthcare expenditure. Hence, health insurance is paramount to secure your financial solvency and stay in absolute peace of mind!
What is Health Insurance:
Health Insurance is a sort of insurance, that provides your hospitalization bill when you need it most. These expenses may include hospital admission, room rent, Doctor and Nurse fee, medicine cost, surgery fee, ambulance charge and so on.
Importance of Health Insurance:
“It is health that is the real wealth, and not pieces of gold and silver.”
– Mahatma Gandhi
Almost all the people on this earth are running behind success. To most of us, success is materialistic like a fancy house, exotic car, high bank balance and so on. However, a sudden medical emergency may turn anyone’s rosy life upside down. Let’s imagine Mr. Jamil’s story;
Mr. Jamil is a Head of Marketing in a renowned company. He enjoys six-figure salary and car facility from his organization. Every month he is paying EMI for his apartment and investing in some other financial instruments for future solvency. Suddenly, one day in office he is feeling chest pain and immediately taken to nearest hospital. Doctor diagnosed and told his wife that he has 4 blocks in heart and need stenting in heart immediately which will cost approximately BDT. 500,000. Now, Mr. Jamil’s wife is in big trouble how she will arrange this big sum of money in a short notice. Although she asked her relatives, they could not help her to arrange required money. At last, she had to sell her jewelry and a piece of land for her husband’s treatment.
Likewise, this type of unforeseen medical emergency may arise in our life any moment. It is wise if we prepare ourselves earlier to face anything unexpected. Some might think, I always have some emergency fund and it will safeguard me. Please remember, in that case you are spending your hard-earned money and you will have no savings for your future.
Common misconception about Health Insurance:
A common mistake everyone does about health insurance is they think the premium they are given is refundable if they do not claim which is completely wrong. Health insurance premium is only risk premium which cannot be refunded in any case. However, you will get Income Tax rebate benefit only if your Health Insurance offers life coverage as well.
Another wrong conception about health insurance is, when people is diagnosed any disease which need immediate surgical intervention only then they will avail health insurance and get the coverage. The truth is, you need to purchase health insurance as early as possible and in healthy state. In that case, premium will be lower, opportunity to get no claim bonus will be higher and less chance of rejection rate. In other words, when you will buy health insurance in sound health, only then it will provide you hospitalization coverage in case of any unforeseen medical emergency.
In a nutshell, if you avail a Health Insurance plan for you and your family, it will safeguard your savings, decrease your outpatient bill (in some cases) and reduce your income tax burden. All in all, health insurance is beneficial for both of your financial health and sanity.
Do you purchase your Health Insurance yet?
Written by:
Md Kawsar Hossain
Marketer | Health Insurance | Pharmaceuticals | Healthcare | Digital Disruptor