The importance of having health insurance in modern times is undeniable, especially when we find it difficult to balance our working life with healthy lifestyle options. Besides, medical emergencies can arise without any warning and burn a hole in your pocket, which your financial planning wasn’t quite ready to deal with.
While you may not predict the outcome, in this case, you can prepare for an emergency with health insurance plans. Having health insurance protects you and your family from the huge financial burden of paying for medical expenses.
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Here are some of the important reasons why you need to consider health insurance plans as a necessity in today’s day and age:
- Growing incidence of lifestyle disease and critical illnesses
- Ever-rising stress, that is being seen more and more in the younger generation
- Inflation and sky-rocketed costs of medicare and healthcare
Buying health insurance for you and your family is important because health care is expensive. Being hospitalized can create significant financial burden on you and your family. Check out some of the benefits that buying a health insurance offers:
1. Coverage Amount
From offering annual health check-ups to day-care treatment and from in-patient hospitalisation to OPD and charges for domiciliary hospitalisation, your health insurance should cover it all.
Several non-hospital services like dental, optical, chiropractic, optical and even services like dietary advice and Ayurvedic or Homeopathic treatment options can also be added to customise your health insurance accordingly.
Read more about online health insurance plans provided by various insurance providers and opt for the one that can be customised to suit your family’s needs as well.
2. Financial Planning
Once you make provisions to look after your health and that of your family’s, it is safe to assume that a major part of your financial planning has been taken care of. Besides, when you buy a health insurance policy you also get to claim tax deduction on your premiums every year, and that helps streamline finances.
You can then easily start investing towards other short and long-term goals like buying a car, world trip, children’s marriage, as you already have a health insurance policy to look after the medicare and hospitalisation expenditure.
3. COVID-19 Specific Insurance
The coronavirus pandemic has left every individual worried about rising medical expenses and hospitalisation. If you are looking for a specific cover that offers these benefits, then there are many types of COVID-19 insurance schemes that you can look into. While there are some that cover hospitalisation charges, some policies also offer a lump sum payout.
4. Types Of Health Insurance
There are many types of health insurance plans you can select, once you know the cover and benefits required from the policy. An individual health plan, for example, benefits only the policyholder and can be an ideal plan for people who are young and single. However, if you wish to cover your family then one of the best plans would be a family floater policy.
These types of policies offer coverage to kids, adults, and older people alike. One of the main benefits of this plan is that the policyholder can take care of their family members in a single policy instead of having a different policy and premium payment plan for all members.
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How A Health Insurance Policy Can Help with Your Financial Planning
Considering the troubled times during the coronavirus pandemic, most people understand the value of being financially fit in 2021. Not only does a health insurance plan offer medical cover and financial protection but also income tax benefits.
Under section 80D of the Income Tax Act, deduction of Mediclaim premium applies to senior citizens, HUF and earning individuals at large. You can also claim tax deduction if you are paying premiums towards the health insurance policy of a dependent parent.
People often think that when it comes to financial planning, saving money or parking it in instruments with good returns is enough but they often forget to factor in the rising cost of health and medicare, and if an emergency like the pandemic strikes, hospital bills and treatment cost can alone pull you back financially for years to come. This is where health insurance comes in handy, to take care of your medical treatments and offer a comprehensive coverage to your family as well.
You can create financial goals for the short and long-term, evaluate your current expenses and liabilities and plan for your future if you have a health insurance plan that is looking after your and your family’s health.