Why is Health Insurance Essential in Financial Planning?

health plan

Financial planning becomes a part of your plan if you are an earning individual. It sets you on the right path for securing long term finance. Without adequate planning, unstructured spending increases. This creates a shortage of funds to overcome an unexpected financial crunch. However, it is challenging to prepare for medical emergencies despite your best efforts.

Given the inflating medical costs, savings fall short in covering the healthcare expenses. To overcome this gap, you need a Health Insurance Policy. It covers the medical expenditure and protects your well-being. Moreover, you can meet your financial goals effectively when your health expenses are secured through insurance.

Here are other reasons to consider it for effective financial planning:

1. Tax rebates

Saving on tax results in cutting down on a significant expense during financial planning. Most General Insurance Policies focus on this aspect. The same goes for Mediclaim. You get to claim an exemption of up to Rs. 25,000 on its premium under section 80D of the Income Tax Act. You may use this benefit to cover healthcare expenses for yourself, your spouse, or your children. As for parents, you get to claim the rebate if they are aged below 60 years.

2. Stable retirement

Regardless of your occupation, you have a steady flow of income as a working individual. This makes it easier to deal with expenses or emergencies. If you fall short on funds, you get to apply for Loans. But the same is not possible after you retire due to limited funds. Hence, having financial support in old age becomes imperative. More so for your age-related health concerns. A Health Insurance Policy sorts this requirement.

3. Safety net

Ailments have become a common concern today regardless of age. Diseases crop up unexpectedly with compromised climate conditions, hectic lifestyles, and poor diet. Buying Health Insurance Plans lets you build a safety net to combat medical costs. Besides treatment costs, these plans cover ancillary expenses. They include charges related to hospitalisation, home visit, day care procedure, ambulance, etc.

4. Beat inflation

Due to the advancement of technology and new experiments in healthcare, medical costs are plummeting. The ever-increasing cost becomes hard to tackle despite setting aside funds. Predicting the financial requirement for future emergency expenses is almost impossible. The best solution in such cases is to buy Health Insurance in India. The policy pays for medical expenses at the prevailing rate.

5. Early buying benefits

Insurers favour young buyers as they have low exposure to medical ailments. Moreover, younger candidates have income stability to pay the premium amount. Hence, if you buy online Health Insurance before your 30s, you get the best coverage at a lower cost. You also get higher tax benefits. It is advisable to buy the policy early to capitalise on such benefits that increase savings in the long run.

6. Renewable product

Insurance Policies are not a one-time investment. They typically come with annual validity. The same goes for Medical Insurance. You must renew it every year to keep it active. If you opt for long-term plans, you need not manually renew as often. During renewal, you get to make changes to your base coverage. If you are dissatisfied with your existing policy provider, you may also switch for better offers.

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