Benefits of Health Insurance To Be a Part of Your Financial Planning?

Financial planning is about choosing the right investment tool and providing financial protection to your family. Read on to know about the importance of health insurance in financial planning.Although the awareness of having a health insurance policy has increased significantly, many people don’t understand its importance. Today, health is a big issue as the stress levels, and risk of lifestyle-related diseases are increasing every day. With the rising medical inflation, health insurance must be an integral part of your financial planning agenda to save yourself from depleting the savings.Let us look at health insurance benefits and their importance in financial planning.

Tax-savings are an integral part of financial planning. While planning your annual finances, apart from choosing the right investment tools, you may want to look for ways to reduce your tax liabilities. If you have a health insurance policy, the premium you pay is eligible for tax benefit under Section 80D of the Indian Income Tax Act to a maximum limit of Rs. 25,000.Additionally, if you have purchased a health insurance plan for your parents who are aged more than 70, you are eligible to get an additional tax benefit of Rs. 50,000. Thus, a health insurance plan helps you save on medical expenses and reduces annual tax outgo.

One of the primary concerns people face today is the rising cost of medical expenses. With new ailments and lifestyle related diseases cropping up, having a comprehensive health insurance policy allows you to provide the best medical treatment facilities to your family without worrying about the expenses.Today, there are many health insurance policies, and you can choose the right plan to suit your specific needs and choose a higher sum assured. Additionally, these plans cover the medical expenses and ancillary expenses like ambulance costs, funeral charges, OPD care, bed charges, etc.

Today, many insurance companies offer health insurance plans with lifetime renewability option. This means you can renew your healthcare policy for as long as you live and stay protected. This option comes in handy during the old-age when you may have zero or limited income for out-of-pocket expenses. With old age, as the risk of medical contingencies increases, your health insurance policy will help you take care of the treatment expenses.

Retirement is inevitable. No matter if you are a salaried professional or a business owner, you must retire at some point. And, once the regular income stops, the real struggle begins. If you have a health insurance policy, you need not face any challenges related to medical expenses. You need not create a separate corpus for medical emergencies.Instead, your financial planning can be focused on accomplishing other retirement goals like buying a house, travelling the world, or pursuing a hobby. Thus, you can enjoy the second-innings of your life and let the insurance companies take care of your medical expenses when needed.

Teaching your children about health insurance benefits is essential. But, they will learn only if you will invest in a health insurance policy as part of financial planning. So, passing on the knowledge will help them plan their finances better and live a more secure and fulfilling life.

Financial planning is vital to secure your present and future life and live without any financial hassles. And, you can achieve this by purchasing an insurance policy for you and your family. It is advisable to compare the different insurance plans offered by different insurers and choose the one that suits your specific needs and budget.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.