Why Having Health Insurance Is Important for Financial Planning
Updated On Nov 23, 2020
Health insurance is an insurance product that promises to cover all the medical expenses incurred by the insured individual. The medical expenses that are insured can be but are not limited to doctor consultation fees, surgery, medicines prescribed, and any other medical expenses incurred by the individual who fell ill. Health insurance is either directly reimbursed to the insured individual or the immediate caregiver of the individual.
An Aspect of Health Insurance in Financial Planning
Financial planning is one of the most important aspects of planning one's future. Financial planning means safeguarding one's future from any possible financial harm. Health Insurance is regarded as one the most important aspects of financial planning as it protects the health and well-being of an individual, by taking care of their necessary medical expenses that arise when the individual falls ill.
Advantage of Health Insurance Policies
There are also advantages of including Health Insurance as a part of the financial planning process. They are listed below:
1. Medical Exigencies: By opting for a health insurance policy, one can ensure that there will be no unexpected medical expenses that can present themselves at the time where the individual would be ill with a disease. This means that the people who have health insurance as part of their financial plan also ensure a major medical expense-free life.
2. Tax Benefits: The people who opt for health insurance also enjoy the tax benefits that come with it. This is done through section 80D of the Income Tax Act, which states that the premium amounts that would be paid for the insurance policy would not be taxable and hence are exempted.
3. Post-Retirement Life: Individuals with Health insurance as part of their financial plan also enjoy the added benefit of not needing to worry about their medical expenses that can occur in their old age, as this would already be taken care of by the insurance providers.
4. Reduction in Medical Expenses: By purchasing a health insurance policy, the regular doctor visits and medicines required can all be covered at least partially by insurance companies. These expenses come under the Insurance policies, and the insured individual can ask the insurance company to reimburse the expenses paid by the individual during these doctor visits.
Health Insurance should very much be included in the financial plans of every young individual as it protects the insured individual's future as well as the future of their family. Health Insurance is a necessity in everyone's life. Along with securing one's well-being Health Insurance also provides other benefits like post-retirement care, tax benefits, and reduced costs for frequent doctor visits.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.