How Can a Health Insurance Plan Aid in Financial Planning?
The adage health is wealth is rightly justified in today’s day and age. With the world starting to recover from the pandemic, it made everyone realise how crucial it is to look after your health. Any amount of planning is down the drain if you start to ignore your health.
With growing instances of lifestyle-related ailments and increasing pollution levels, it has become difficult to maintain health. For that purpose, a medical insurance is the safest backup alternative that you can buy. As you plan for you finances with help of tips and financial advisors, ignoring backing-up your health can be like taking the bull by the horns. You surely do not want to do that, especially when it comes to the health of you and your loved ones. This article lists down some smart ways how a health insurance supports your financial planning in the long run –
Addressing unexpected medical emergencies
Medical emergencies do not come knocking at your door. They take you by a storm when you least expect them. This is when you feel the need for a Plan B. A health insurance policy helps to attend these medical emergencies without having to worry about liquidating your investments. Divestment prior to meeting your financial goals can disrupt the financial plan laid down and can cause trouble. Moreover, with the soaring cost of medical treatment, relying solely on your savings is not advisable since the rate at which your savings grow is not always proportional to the rate of medical inflation. A health insurance policy, on the other hand, can be accordingly purchased accounting for future treatment costs. Such financial planning using health insurance for senior citizens is especially useful since they have a higher reliance on medical support in old age.
Availing tax benefits
Another reason to avail of health insurance plans are the tax benefits it has on offer under Section 80D of the Income Tax Act. All premiums paid for health insurance covers are eligible for deduction in your return of income. Deductions up to ₹25,000 can be availed for individuals below 60 years whereas the same amount increases up to ₹50,000 for senior citizens. With these benefits in your return of income, any income earned from investment can be offset with such deductions.
With features like cashless health insurance, availing of medical treatment is convenient even during retirement when income source is limited and dependence on medical support increases. Moreover, increasing health concerns after retirement can wipe off your hard-earned savings which otherwise can be avoided with a health insurance policy.
A comprehensive coverage
The right health insurance policy if customized just as per your need can fund the treatment for all kinds of diseases. Not only that, it helps to avail a comprehensive coverage for treatment costs and is not limited to costs of hospitalization. This way, you need not divest or disturb your financial planning and avail all necessary treatments with the support of a health insurance policy.
These are some ways how a medical insurance plan complements your financial planning journey. So why wait? Get a suitable health insurance cover for you and your family today! Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.