How does buying health insurance reduce financial risk?


Insurance is synonymous to indemnity. It means having a back-up plan, like something to cover up for the loss one faces. Health insurance is the same thing; it ensures that you have a back-up plan even if some unforeseen event takes place. Like for example, may this not happen but if you fracture your leg and cannot go to office for work, then an insurance would come in handy.

Health insurance

Insurance are of many types, we have fire insurance, freight insurance, life insurance and many more, but the most important among them is the health insurance as ‘health is wealth’. A loss in business can be borne, but loss of health becomes a huge burden and removes the happiness from a person’s life. Insurance cannot avoid the accident but it definitely helps in minimizing its effects.

It does not guarantee that the health conditions will not deteriorate but it will minimize the impact of such an incident. It provides financial support and helps the person recover from his illness; it acts like a friend who is right by your side during your worst times. It helps you get back on your feet and have a quick recovery by taking away the stress of earning and paying the bills.

Affordable health insurance

Insurance is usually given as a package where you first pay the money in installment till the amount agreed upon is paid, next if any health issues come up the insurance company pays the amount back to you. If an incident takes place before the insurance term is paid, then the insurance company will have to pay the whole amount agreed upon despite the lack of payment.

Affordable health insurance is available in today’s competitive world and offer similar facilities to that of the expensive insurances. It is estimated that around five percent of your annual income should be put to use for medical insurance.


Health insurance acts as a back bone to the close relatives of the affected person, it helps him recover faster as he does not have to worry about finances. It usually helps on a rainy day and reduces the financial burden on an insured person. By buying health insurance one can be sure of less mental pressure and be ensured of the support as a friend and a relative. It not only reduces the financial burden but also makes a great impact on the family of the affected.

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