Importance of Health Insurance in Financial Planning
Over the years, healthcare expenses have increased significantly. In such a situation, getting health insurance coverage is of utmost importance to protect your family from facing financial hardships during a medical emergency. It also helps in efficient financial planning. Let us see how.
Helps avoid financial crisis
If you carefully compare the coverage benefits of different health insurance plans, you will find that most of the plans cover almost all types of medical expenses that you may incur. Thus, if you face any medical emergency that requires you to get hospitalised, you can get comprehensive coverage. And, when your medical costs are covered, you can avoid facing a financial crisis as they help you keep your savings safe and get high-quality treatment without worrying about the cost.
It helps you be ready for emergencies
Emergency can occur at any time, and, often, emergencies wreak financial havoc. However, if you plan your finances well, you can easily overcome such emergencies. And an important aspect of financial planning for emergencies is getting health insurance coverage.
If you face any medical emergency, medical insurance policy can help be financially ready to meet the expenses without derailing your financial plan.
Provides coverage for the whole family
There are two types of health insurance, individual health insurance plan and family floater plan. The latter provides coverage to all the family members. When all your family has health insurance cover, no member’s medical needs would impact your financial planning.
Tax benefits
Tax-saving is one of the most important aspects of financial planning. Every year, during the tax season, people look for different ways to reduce their annual tax liability. Buying health insurance plans is one of the efficient ways to reduce the tax burden.
The premium you pay for the health insurance policy that covers you, your spouse and dependent children is eligible for tax benefit up to Rs. 25,000 per year under Section 80D of the Indian Income Tax Act.
If you have purchased a health insurance policy for your parents who are aged less than 60 years, you can get an additional tax benefit up to Rs. 25,000. And, if your parents are older than 60 years, you can get a deduction up to Rs. 50,000.
You can invest the amount you save on taxes in various instruments and get valuable returns, which in turn can help you accumulate a corpus for your future goals.
Secure your post-retirement life
Retirement is inevitable. Once you retire from active employment, you would not have a fixed income source. In such a situation, having medical insurance can help you get financial coverage for your on-going and future treatment expenses.
Health insurance policy typically covers all expenses. This means you need not spend a penny from your pocket. Moreover, you can keep your savings intact and continue investing towards your post-retirement goals.
In your quest to achieve financial independence, buying medical insurance policy can help you accomplish your goal without any hassles. It would help you keep your savings protected and ensure that your journey towards achieving long-term goals never gets side-tracked.
At Kotak General Insurance, we offer a wide range of health insurance plans to suit the different needs of the buyers. To explore the features and benefits of different plans, visit our website.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.