Insurance today can be very instrumental in offering the much-needed financial assistance in case of accidents, death, asset or property damage, car or two-wheeler damage, illness, healthcare and hospitalization. None of the above-mentioned events is desirable but they cannot be always avoided. This is why investing in a health insurance plan can be one of the best investments you can make today.
Aligning Health Needs and Financial Goals is Essential
If “health is wealth”, spending on a health insurance policy is an investment. Conditions like cardiovascular diseases, high BP, diabetes, respiratory diseases and others are on the rise. Because of this, it could be more important than ever to have the relevant Life Insurance and health insurance in place to help you receive the right amount of coverage should anything happen, especially when you suffer from these types of health problems. Our sedentary lifestyle and the polluted environment are affecting our health adversely.
The healthcare costs have skyrocketed in the past few years. Given the circumstances, an illness or a sudden medical emergency may completely drain a person’s savings. A medical condition is not a guaranteed event but is highly probable, for which one must remain prepared. While you plan your financial road map, health insurance should be an important part of the same.
A medical expense at the age of 30 might seem manageable. But if the condition requires prolonged treatment or there are multiple medical emergencies, the corresponding expenditure can thwart all your other plans. Such financial extremities can be avoided if you choose the right health insurance plans at the right time.
Realize the Sudden Nature of Medical Emergencies –
Medical emergencies amply illustrate that life is uncertain and unpredictable. It can happen at any point of time without any prior indication. With a health insurance policy, you can focus on the treatment process without worrying about the expenses. This way you can also protect your finances from any sudden shocks or outflows.
Health Insurance Cover is Basically Your Medical Fund –
With the cost of healthcare increasing continuously, a health insurance policy allows you to create a fund for your medical needs. The best health insurance plans give you a much higher sum insured at an affordable premium. It not only takes care of the direct medical expenses but also the associated daily expenses, ambulance charges, bed charges, and others. It also acts as a financial or funding back-up for recurring medical costs.
Tax Benefits –
Having health insurance plans provide tax benefits as well. The reduction in tax liability is an essential component of financial planning. Under Section 80D of the Income Tax Act, an individual can claim an exemption of up to Rs.25,000 on the premium paid for the insurance of the self, spouse, and children.
Additional tax relief of Rs.25,000 or Rs.50,000 can be claimed for parents less than the age of 60 years and above the age of 60 years respectively. Under certain conditions, an insured taxpayer can get a tax deduction of Rs.1,00,000.
Thus, buying a health insurance policy will not only keep you covered for medical emergencies but will also help you save taxes.
During the working phase of an individual, there is a stable and continuous flow of income. Thus, it is relatively easier to manage medical adversities. If you have a health insurance policy, you don’t have to fret about exhausting your financial resources in the event of an illness.
Also, your health insurance cover will provide you with the much-needed health security required in the old age. With your health secured, you can use your retirement corpus to realize other post-retirement plans like a dream holiday or buying a house.
You can make an efficient and pragmatic financial plan by securing yourself and your family’s healthcare contingencies. You can buy from a range of Pocket Insurance products offered by Bajaj Finserv. Some products offered by the company include Group Jeevan Suraksha, Dengue Cover, Tuberculosis Cover, Monsoon Cover, Stampede Insurance, Child Personal Accident Cover and others. These are affordable insurance plans designed to meet short term needs precisely covering your unique needs.
Great article. It is very useful and this is the basic knowledge that everyone must know about financial planning. Thanks for sharing.
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