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Health insurance provides people with a much-needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life. One cannot plan and get sick but one can certainly be prepared for the financial aspect. One of the ways to be financially prepared against uncertain health risks is by buying health insurance. And the best part is that they have started accepting the fact that they actually do need health insurance.

Health insurance is a type of insurance coverage that pays for medical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. There are different types of health insurance plans, such as individual health insurance, family health insurance, critical illness insurance, etc. Purchasing a health insurance is an integral part of financial planning.

Health insurance provides people with a much-needed financial backup at times of medical emergencies, but it is an observed fact that till date, medical care in our country still remains largely as an expensive affair. According to various reports, India still continues to have the lowest health insurance penetration in the world. However, government's focus towards health schemes, new initiatives like, Ayushman Bharat Yojana, and capital expenditure towards healthcare may ameliorate the situation.

There are innumerable reasons to have a health insurance policy in place, and if you have a family to support, you can buy a family health insurance to take care of the medical needs of your family. However, the health insurance premium that one has to pay to avail a good insurance policy varies for different people, and is based on a number of different factors.

Here are the five major reasons for getting a health insurance:

Changing lifestyle: There are a plethora of reasons to have a health insurance policy in place. The tectonic shift in our lifestyle has made us more prone to a wide range of health disorders. Commuting, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems.

Rising medical costs: The medical costs have dramatically risen lately. So, in case of a medical emergency, consumers end up spending their savings, which takes a toll on their future plans. Reports highlight that Indians primarily depend on their own savings when it comes to tackling health emergencies.

Income tax benefit: Payments made towards health insurance premiums are also eligible for tax deductions under section 80D of the Indian Income Tax Act. Individuals up to 60 years of age can claim a deduction of up to Rs. 25,000 for the health insurance premium paid for themselves, or for their spouse or children. One can also claim another Rs. 50,000 as deduction if you buy health insurance for your parents aged 60 years and above.

This deduction will be available with respect of payments towards annual premium on health insurance policy, or preventive health check-up, of a senior citizen, or medical expenditure in respect of every senior citizen. So overall, if you are paying the health insurance premiums for your senior citizen parents, you can avail total deduction up to Rs. 75,000 (Rs. 25,000 + Rs. 50,000), from the Rs. 55,000 (Rs. 25,000 + Rs. 30,000) earlier.

Coverage of pre and post hospitalisation expenses: Not only mainstream medical costs, but also the cost of OPD (out-patient department) expenses, diagnostic tests have also risen in recent times which have made it even more vital for one to buy a health insurance policy. It is noteworthy that the medical policies not only cover the hospitalisation costs but also the expenses incurred towards OPD and diagnostic tests before and after a stipulated time period as prescribed by the policy.

Additional benefits: One also gets benefits such as ambulance coverage, coverage for day-care surgeries, coverage for health check-up and vaccination expenses under health insurance. These days' insurance companies also offer health insurance for Ayush treatment.