Why Health Insurance Should Be the First Step to Financial Planning?

Financial planning is absolutely essential to keep the future of your family safe and secure. An important aspect of this planning the financial expenses of health. While there is a lot of awareness regarding family health insurance policies, many people are still unaware of their importance in financial planning. 

When it comes to lifestyle diseases like diabetes, high blood pressure, and even critical illnesses like cancer, health insurance becomes a necessity and not a choice. With skyrocketing health care costs, family health insurance safeguards your savings and protects you from unavoidable debts. 

While many of you may be absolutely fit and healthy, it is not certain, considering present environments and a sedentary lifestyle. Considering medical inflation, health insurance should be the first step in your financial planning. Without health insurance in place, your financial planning can go for a toss. The right family health insurance plan with sufficient and suitable coverage helps a long way to safeguard your health as well as your finances. 

Here are some reasons why health insurance must be included in your financial plans:-

Health insurance helps you save on taxes: Tax saving is an essential part of your financial planning. When you are planning your finances, besides picking the right tool of investment, you must also look for ways to reduce taxes. With a health insurance policy in place, you can get a tax rebate. The premium paid for availing health insurance for yourself, your spouse, children, and even your parents are eligible for deductions in income tax as per Section 80D of the Income Tax Act. The rebate limit, however, varies from individual to individual, considering the premium amount and age of policyholders. 

Not to mention, procuring a family health insurance plan and including your parents who are senior citizen makes you eligible for a rebate of up to Rs 50,000. So besides saving your money from exceeding healthcare bills, health insurance saves your taxes too. 

Benefits of lifetime renewability: Nowadays, most health insurance providers offer the renewability feature. This means you can renew your family health insurance policy again and again till the time you are alive. There is no maximum age. This is a huge benefit for those who are retired and need to cut down on expenses. With old age, the income is reduced and the chances of medical issues are increased. Having health insurance in place, your medical contingencies can be taken care of without impacting your expenses and savings. 

Ensures good health of your family: No amount of investment can be more than the health and wellness of your family members. With the increased cost of medical treatments and hospitalisation, comprehensive family health insurance is a must. With new diseases and lifestyle issues coming to notice, health insurance will ensure your family gets the best medical care without burning a hole in your pocket. 

While there are numerous health insurance policies in place, you can compare and choose a plan that fits the needs of your family. You should ideally look for a family health insurance plan that not just covers the cost of treatment, but also expenses like funeral charges, OPD care, bed charges, cost of the ambulance, etc. 

Need not worry about out-of-pocket expenses: With the rising cost of healthcare, it is vital to create a corpus fund to manage medical expenses. Keeping aside some funds to be utilised for emergencies is a good idea. But while you may have just started building the corpus, medical emergencies do not wait for the right time. Better planning is essential to do that, and health insurance is the correct way. 

There is no reason to exhaust your savings in one medical emergency. A health care plan comes at a much lesser premium than the cost of a treatment that needs hospitalisation. This is designed to help you pay for medical emergencies without worrying about losing your savings. 

If you are still unsure about getting health insurance for yourself, it is important to understand that a health insurance plan is important for everyone, even if you are fit and in good health. Besides ensuring you and your family are in good health, it helps you save money in the longer run. Firstly, investing in a health insurance plan transfers the financial risk of healthcare costs to the insurance provider in exchange for a comparatively very small amount of premium. This is technically a huge saving. Additionally, by paying a premium for health insurance, you are safeguarding your family’s health. No matter how high the medical costs go, your and your family’s health remains secure with a pre-decided premium. 

Lastly, if healthcare cost is considered, the earlier you invest in health insurance, the better it is. It is not a one-time deal; timely renewal is as important as buying insurance to keep reaping its benefits. A valid health insurance policy will help you even after retirement. 

In order to secure your future and stay financially independent, a health insurance policy for your family must be the first action. When purchasing health insurance, do remember to spend time and compare different plans and choose the one that suits the needs of your family as well as your budget.

Disclaimer:  The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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