Consequences Of Not Buying Health Insurance

health insurance
Photo by osaba from Freepik

Health insurance has become the need of the hour due to increased lifestyle disorders and equally high medical inflation. You might be able to financially cover minor healthcare requirements. However, in the event of a major medical emergency which requires hospitalisation and specific treatments, you would be left with nothing but a monetary burden. This is the reason why many are now opting for medical insurance coverage and prioritising their health. In this article, let’s go through some of the key consequences of not purchasing health insurance.

Reasons Why People Don’t Purchase Health Insurance

  • Lack of Awareness: Many individuals aren’t aware of health insurance and its benefits. Some might believe that purchasing a policy is a complex process or they aren’t eligible for one due to health conditions or other issues.
  • Misconceptions About Insurance: There are numerous myths about health insurance that deter people from getting insurance coverage. One such misconception is related to the affordability of health policies. 
  • Belief in One’s Health: It is common to believe that you are healthy because you are young. Purchasing insurance during such time would go in vain as you might not end up using it. But that isn’t true as you can still gain perks if you do not make any claims.

Risks of Not Opting for Health Insurance

  1. Loss of Life Savings

One of the biggest drawbacks of not having sufficient health insurance is the loss of life savings. You might have saved up money to accomplish long-term plans. However, one medical emergency and all your savings could go down the drain while covering the healthcare expenses. 

Due to such monetary stress, you wouldn’t be able to focus on recovering from the ailment which isn’t ideal. With the right health plan, you can ensure that most of the expenses are covered under the policy. You cannot only minimise your out-of-pocket expenses but also have peace of mind!

  1. Lack of Quality Healthcare

Having access to quality healthcare to recover from the ailment is crucial. However, if you cannot afford expensive treatments or therapy, you might have to choose low-cost care or skip certain remedies. This puts you and your loved ones at risk when you could have easily opted for proper insurance coverage.

Health insurance enables you to pick quality healthcare treatment without worrying about your finances. Various insurance companies have reputed and trustworthy hospitals under their network chain that make sure you and your loved ones get the required care!

  1. Soaring Healthcare Expenses

According to a report published by The Hindu, medical inflation has increased from 3.8% in December 2019 to 8.4% in May 2021. Due to such rising healthcare inflation, having a financial backup against emergencies is a must. Without insurance, you would have to experience all of the above-mentioned consequences. 

Although health insurance might be viewed as expensive, you must know that it is possible to personalise plans on various factors including premiums. Thus, you shouldn’t worry about the premium quotes when you opt for health insurance.

  1. Zero Tax Benefits

At one point or the other, you are going to require tax benefits to save up on taxes. Even though while purchasing health insurance you might not fall under the tax bracket, you would end up losing this opportunity. You can still purchase insurance later in life but the premium rates increase with age and thus, it might not be ideal.

You can claim the insurance premiums under Section 80D of the Income Tax Act, 1961, and make significant savings. Furthermore, you can also claim tax deductions for health policies purchased for your parents!


We hope you have understood the risks of not purchasing a health insurance policy. Moreover, having such a plan is like securing a backup against unforeseen emergencies that may affect you in the future. Health insurance enables you to enjoy benefits such as cashless hospitalisation, home treatment, access to organ donor cover, alternative treatment, and more! Thus, insurance can also be a safety net in case of planned treatments that might be required in the long term.


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