Top 3 Ways to Save Money With Health Insurance

All of us agree to the fact that “Health is wealth”. However, not many of us actually work towards building a healthy life. While the saying has helped us cherish wellness, it has not done much for our understanding of the dynamics of money related to health. Many of us have always had an optimistic approach that nothing is going to happen to us. However, we do not take into account that the cost of medical ex-pense is rising with each passing year and you will have to incur numerous expenses if anything goes wrong with your health. India is a country where we spend a huge amount on health-related issues and the best way to battle illness without blowing your savings is to buy a health insurance plan. Such a plan will not only secure your health but will also protect your savings.

Benefits of Health Insurance that Help Save Money

Many people believe that health insurance is an unnecessary expenditure. However, it is possible to save money with a health plan and here is how you can do it.

1. Helps in Saving on Medical Costs

Medical costs have risen in the last ten years and they are only going to increase with time. Even the basic cost of hospitalization has increased above 10% and this shows that the expenses related to medical procedures will be substantially on the higher side. An increase in medical cost can eat up your savings. If you do not have an in-vestment plan that can take care of the medical expenses, you could end up spend-ing all your savings for a medical procedure. With a health insurance plan, you can protect the savings from being drained out.

2. Facilitates in Planning for Retirement

One of the top health insurance benefits is that it helps in retirement planning. You can renew the plan until you survive. This will be very helpful when you retire. As you age, the income declines and the risks associated with medical emergencies in-crease. A health insurance plan will provide cover for any medical emergency, and thereby ensure that your savings are untouched. Additionally, the insurance plan of-fers lifelong renewability, which means that you can plan your retirement well and save on the expenses for a medical emergency or an illness. You will be covered un-der a health plan even when you are 90.

3. Provides Tax Benefit

Apart from offering you with monetary benefits towards health-related problems, a health insurance plan is an ideal investment option if you are looking for tax deduc-tions. The premium amount paid for yourself and dependent family members is ex-empted from tax according to Section 80D of the Income Tax Act, 1961. Hence, you can claim an amount up to INR 75,000 as a tax exemption when you pay premiums for yourself and your parents who are above 60.

Explain Health Insurance

Here is an example that will help you understand health insurance better. Assume you have purchased a policy at the age of 28 of INR 5 lakh. You will pay INR 10,000 annual-ly as your premium amount. During the policy tenure, if you are hospitalized, your health insurance plan will compensate for the same up to the sum insured.

It is important to understand that a health insurance plan is not an expenditure but an investment, which helps you save in the long term. You must choose your insurance plan carefully keeping your health and financial requirements in mind.