Is Health Insurance an expense or an investment


25 Jul 2023

Read about whether Health Insurance an expense or an investment. For more information, check out the health insurance plans from Kotak General Insurance.

Did you know that in India, only 0.4% of the entire population has a health insurance policy in their name? The data seems quite alarming keeping in mind that India is still a developing country, with an ever-increasing population, where millions of people are still below the poverty line and struggle to afford the most basic healthcare facilities. It doesn’t really come as a surprise that many insurance-averse Indians consider insurance to be an expense. But, this approach in itself is incorrect. In no way is health insurance just an expense, rather it is an investment, which even the healthiest people should make. To understand why having a health insurance plan is crucial and to understand the benefits of health insurance, read on.

What makes health insurance an investment?

With the ever-increasing medical inflation, the cost of healthcare facilities is at an all-time high. A trip to the hospital can greatly affect your savings. In such a scenario, health insurance acts as a shield to protect you and your loved ones against medical emergencies. The sole aim of buying health insurance is that it offers coverage for not just the in-hospital expenses but pre and post-hospitalization as well. Rather than worrying about arranging funds, in case of an illness or an accident, you can concentrate on getting the treatment without having to make compromises. A health plan can thus act like a lifesaver. Let us take a look at the benefits that health insurance brings with it.

Benefits of health insurance

1. A comprehensive plan covers a number of other expenses that occur over and above the hospitalization charges

2. From room rent to ICU charges, from injections to doctor’s fees, your health plan would cover it all

3. Most plans cover daycare procedures such as cataracts, dialysis, etc.

4. Ambulance charges are also covered

5. You can claim tax exemptions on the premium that you pay under Section 80D

6. Senior citizens can make claims up to INR 1 lakh

7. When you do not make a claim, some insurers offer No Claim Bonus

8. The advantage of cashless treatment makes seeking even the most expensive treatment well within reach.

How can you make the most of this investment?

If you have been wanting to purchase a health insurance plan but find that the premium is a little on the higher side, here’s how you can lower your health insurance premium:

1. Purchasing health insurance at an early age can greatly help in reducing the premium, as you are mostly free from common age-related problems

2. You can opt for a policy with a smaller sum insured and thus decrease the premium

3. Try to opt for a co-payment or a higher deductible

4. Opting for a top-up or a super top-up can offer better coverage

5. Family floater plans offer coverage for the whole family and thus offer more safety

6. Make the most of the Section 80D of the Income Tax Act, which offers tax benefits

7. Compare the most suitable plans online and choose the best one.


Your health is your biggest asset, and when you safeguard yourself, you are consequently securing your finances. Health insurance is a great way to save money, and thus an investment that everyone should make.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.