Reasons Why You Should Think About Health Insurance When Making Future Plans
Updated On May 16, 2022
Table of Contents
Though a medical condition is not certain, it is probable given the sedentary lifestyle and environment we live in. So, having sufficient health insurance as a part of your financial plan is extremely important and should effectively top the list of your financial planning agenda. This will help you from facing any financial crunch. Further, any financial goal can be efficiently met if you have good health associated with it. Thus, choosing the right health insurance plan with adequate coverage benefit goes a long way in your current and future well-being. Additionally, procuring a suitable medical insurance policy early in your career can go a long way in mitigating your financial risk arising out of health concerns.
Why is Health Insurance Important?
Here are some of the health insurance benefits that make it an integral part of your financial planning:
Life is uncertain and unpredictable, so you never know when some medical emergency may befall upon you or your loved ones. You may take years to accumulate your savings and build a financial corpus for meeting your financial objectives; however, one single medical emergency can have the potential to squeeze out all your funds in one go. This is because nothing is more critical than your life and the lives of your loved ones. Having a suitable health insurance plan with the right amount of coverage can relieve this financial stress, and let you focus entirely on the treatment itself. This way, you can also prevent yourself from any sudden financial shocks or strains. It is advisable to opt for a health insurance plan that not only has adequate coverage and covers a wide range of illnesses but also should have the maximum tenure or duration attached to it.
Financial planning is incomplete without getting tax benefits in some form or the other. Under Section 80D of the Income Tax Act, 1961, you can claim an exemption of up to ₹25,000 on the medical insurance premium paid for self, spouse, and children. Further, additional health insurance benefits can be claimed up to ₹25,000 for parents less than 60 years and ₹50,000 for those above the age of 60 years.
Medical Safety Net
One of the primary concerns we face today is the rising cost of medical expenses. With more and more new ailments and lifestyle diseases cropping up, a health insurance policy allows you to build a medical safety net for you and your family. You can opt for health insurance plans that offer you a higher sum assured at affordable rates too. These plans cover not only the direct medical treatment costs but also the ancillary expenses attached to it, such as ambulance charges, bed and hospitalization costs, etc.
When we work, there is a continuous and steady flow of income. Therefore, dealing with expenses or emergencies during such times becomes easier to manage. However, when you retire and stop working, this regular flow of income stops too. Your funds become limited, and therefore, the existence of financial support in old age becomes imperative. Thus, if you have a medical insurance plan, you are provided with a much-needed form of medical security at any point of emergency during your old, retired age. If your health insurance coverage is sufficient and well in place, you can use your retirement savings to meet other needs.
Financial planning is required to make your present and future life hassle-free. And this can be done in an efficient and pragmatic manner through the security of an adequately covered medical insurance policy. You can not only secure your health through it but also your family’s. It is advisable to research extensively through various plans and their features before availing the right health insurance plan for you and your family post considering your needs, budget, and income.