Health Insurance is an inevitable part of Financial Planning. With the increasing cost of medical expenses, it becomes a necessity to have an OPTIMUM LEVEL of Health Cover to protect your Investments against any medical emergencies.
Medical Emergencies are always unexpected ones. These not only brings financial crunch but also leave its victim in mental stress. Having an adequate level of Health cover is only the solution to cop up the situation.
One must not confuse Health insurance with other Health Products available in the market like
Critical Illness Cover
Cash Hospitalization Cover
And many more.
Health Insurance Policy means only Individual Health Policy or Family Floater Health Policy, which at the time of health emergencies provide for or reimburse the cost of treatments. So that the family is available for care and support only and not for arranging funds in Health Emergencies.
Here are some points that justify the need for Health Insurance:
Rising Medical Costs: With the increase in Inflation, medical costs have reached the sky. The families not only have to face medical emergencies but also the financial and mental stress as its consequence.
Lifestyle and Habits: Today our lifestyle and habits have given an invitation to many diseases. We have Poor eating habits, stressful life and alarming level of Pollution, which in turn degrading our health.
Income tax Benefit: Tax Planning has always been a part of a fine financial plan. Payment of premium of Health Insurance Policy for Self, Spouse, Children, and Parents also qualifies for the deductions under section 80D of Income Tax Act.
Coverage of Pre and Post Hospitalization Expenses: Health Insurance Policies not only provide for In-Patient hospital bills but also provide for pre and post-hospitalization expenses. Also, there are certain Domiciliary treatments Or Daycare procedures (which need not admit) whose costs are borne by health insurance. These treatments may differ from one Health Insurance provider to another. One must go in details of his policy to know more.
Right Age to buy Health Insurance: We suggest younger is better. One must buy Health insurance in his early days of the career as it minimizes the cost of Insurance and waiting period of the certain disease. As one grows older, one may find higher premium costs and certainly if one is suffering from some illness, he may face hardship in getting insurance cover.
So I may now infer that as Risk Planning is the first step towards Investment or Financial Planning, One should have good risk planning before going to financial planning. Health Insurance is an important and unforgettable part of Risk Planning.
Be Wise & Keep Investing
Also, Read – Insurance: Investment or not