What is Health Insurance and How Can It Help You?

Written by : Knowledge Centre Team

2026-07-29

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8 minutes read

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A health Insurance plan provides coverage against medical and surgical expenses incurred due to accidents, illness or any injury during a specified tenure. The insured also gets additional benefits such as cashless hospitalisation, cover for pre- and post-hospitalisation charges and more. With skyrocketing healthcare costs and inflation burning a hole in your pocket, a health insurance plan, in case of any medical emergency, turns out to be a saviour. While it covers most of the expenses, let us learn more about the benefits of a health plan.

Key Takeaways

Health insurance pays for medical costs during illness or injury
It reduces the burden of high hospital and treatment bills
Critical illness cover gives a lump sum on diagnosis
Cashless claims ease the stress during emergencies
You can club term insurance with health cover for added benefits

Why You Must Consider Health Insurance?

Consider the case of Jayant Sharma, a 34-year-old software professional, who hailed from Mumbai. Gifted with good health and physique, he believed in living life to the fullest. Also, Jayant's annual salary of 8 lakh was good enough to support his family of four. He never imagined he could be hit by a critical illness at this age. As a sole breadwinner, he came under tremendous financial stress and suffered a setback. He now realises the importance of purchasing a health Insurance plan early, when he was doing good.

What happened with Jayant is a harsh reality. It can also happen with any one of us. Therefore, health Insurance has now become a part of financial planning, and you will understand its significance only by knowing about it thoroughly. Health Insurance offers you complete freedom to pick and choose the cover you need. It provides you with a lump-sum amount if you're diagnosed with a critical illness through an added rider benefit. What's more is that you get multiple customisation options that you may use to suit your requirements.

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What are the Benefits of a Health Insurance Plan?

Health is unpredictable, and medical emergencies do not wait for the right time. With the growing cost of treatments and hospital stays, even a short illness can create long-term financial strain.

Whether you are young and single or managing a family, having the right coverage gives you access to quality care without the fear of draining your savings. The following are the major benefits that make health insurance a wise choice for every stage of life:

Financial Security: A health Insurance policy offers your financial security in case of any unfortunate events, similar to what happened with Jayant. It protects your precious savings from being depleted during unpredictable medical emergencies.. With health Insurance, you can avoid all of this by paying a small amount as a premium, which would take away all your burden in case of medical emergencies

Critical Illness: Critical illness can strike anyone, regardless of age, gender or status, and at any stage of life. Medical Care associated with the treatment of such life-threatening illnesses has also increased by leaps and bounds in the recent past. So, in order to safeguard your finances against high hospitalisation costs and medical bills, insurers these days also provide critical illness over, either as a rider plan or as a standalone plan. At Canara HSBC Life Insurance, we offer life insurance plans with added critical illnesses rider benefits that include major critical illnesses, including cancer, heart attack, stroke and kidney failure.

Cashless Hospitalisation: Besides offering high coverage at affordable premiums, insurance companies also offer a cashless claim facility. In such an arrangement, you don't have to carry bundles of cash to hospitals for treatment. The expenses are settled between the insurer and the network hospitals. While purchasing a health plan, you get a list of network hospitals the insurer is affiliated with.
Family Cover: A health Insurance plan not only protects you against medical expenses but also your family members, all under a single premium. You can cover yourself, your spouse, children, parents and others from all worries. Offering comprehensive coverage at an affordable price, a family floater plan ensures you and your loved ones have access to proper healthcare in case of any medical emergency.
Other Benefits: With health Insurance coverage, you get several other benefits like free medical check-ups, life-long renewal, alternative treatment and others. Also, the premium paid towards health Insurance can be claimed as a tax deduction, attracting a benefit of up to ₹75,000 under section 80D of the Income Tax Act.

The most important of all the benefits of a health Insurance plan is that it offers you peace of mind during tough times. Also, it gives you easy access to the best treatment available when you need it the most.

Why You Should Combine Term Insurance with Critical Illness Health Cover?

When planning for financial security, most people view life insurance and health insurance as two distinct needs. However, in reality, combining a term insurance plan with a critical illness rider can provide more comprehensive protection. This is because a medical emergency not only affects your body but also your financial stability.

When your term insurance is backed by a critical illness rider, it becomes a more powerful shield. It helps you stay prepared for both life and health-related uncertainties without the stress of multiple policies. It ensures the family is supported not just during unfortunate times, but also in the event of a major health crisis that affects your income.

Here’s a quick overview of how this thoughtful mix can provide a strong foundation for your financial plan:

What Happens When Health and Life Cover Work Together?

A term insurance plan is designed to provide financial support for the family in the event of the policyholder’s untimely passing. On the other hand, a health insurance plan pays out a lump sum amount if you are diagnosed with a serious health condition.

These two products work well when paired because while one covers the worst-case scenario of life loss, the other supports you during a health emergency.

What are the Advantages of Adding a Critical Illness Rider to a Term Insurance Plan?

Here are some practical benefits of attaching a critical illness rider to your term insurance plan:

Immediate Funds Upon Diagnosis: You receive a lump sum payout on diagnosis of a listed illness, which can be used for treatment, recovery, or daily expenses
Income Replacement: If the illness forces you to stop working, this payout serves as a temporary income source, preventing lifestyle disruption
No Need to Dip into Savings: Instead of breaking long-term investments or using saving meant for future goals, you can use the rider benefit amount
Affordability: Buying a rider with an existing term plan is usually more cost-effective than purchasing a standalone health policy

When Is This Combination Most Useful?

This combo works best in the following situations:

You are the sole earning member of your family
Work in a high-pressure or high-risk job
Have a family history of critical illnesses
Want to ensure uninterrupted financial support even during illness

Term Plan vs Term Plan with Critical Illness Rider

Here is a simple comparison to help understand the difference:

Feature	Term Insurance Alone	Term with Critical Illness Rider
Payout on Death	Yes	Yes
Payout on Critical Illness	No	Yes
Coverage While Alive	No	Yes
Premium Cost	Lower	Slightly higher but valuable
Use of Payout	Only for the nominee after death	Can be used during treatment

Conclusion

Health insurance is a smart step toward building a secure and balanced life. From safeguarding your savings to ensuring you get quality care without delay. A health plan gives you both comfort and protection. However, when you combine this with a term insurance policy and a critical illness rider, the result is powerful financial as well as health coverage. It gives you and your family peace of mind through life’s most uncertain moments.

At Canara HSBC Life Insurance, we understand this requirement. Hence, we offer a range of term plans with coverage of up to ₹1 crore, which can be combined with a critical illness rider benefit that covers nearly 40 major illnesses. Now that you know that choosing the right plan today can help you stand strong tomorrow. So, what's the wait for? Let's connect to exchange more details and help you achieve peace of mind.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.