Why Health Insurance is a Vital Part of Financial Planning
January 02, 2022
Those who avail of health insurance are financially protected in the unfortunate event of injuries or illnesses that require medical attention. Different health insurance plans provide coverage for different medical issues wherein certain health insurance policies come in handy for those with specific medical ailments. Health insurance serves as a vital part of financial planning as it helps you with medical expenses. Moreover, it can prevent you from having to incur any loans in order to pay these medical bills. Read on to understand exactly why this is the case.
When a crisis occurs, it doesn’t always come with a warning and medical crises are a prime example of this. Medical issues can occur at any time and do not always come with warning signs. Health insurance is bought keeping in mind your medical profile, lifestyle, age, and income. This type of insurance helps you in these medical crises such that you don’t need to worry about the medical bills that you might incur in a worst-case scenario. Instead, you can focus on your recovery.
It is important to visit your general physician on a frequent enough basis such that you are always in the best of health. This is important not just for you but for your children as well. Health insurance plans provide a number of benefits that include pre and post-hospitalization, in-patient care, and also account for yearly health check-ups. Set against this backdrop you need to think about how you allocate money for your budget. Healthcare premiums are also needed to be paid and ought to be accounted for when planning your finances. Also, consider what doctor’s visits are included under your insurance policy and what aren’t.
This makes up a key aspect of financial planning as health insurance plans bring with them a number of tax benefits. This is owed to the Income Tax Act’s Section 80D whose terms and conditions state that the premium paid for a health insurance plan by you for yourself and your family doesn’t incur any taxes.
Once you retire you don’t earn a fixed income which is when your health insurance plan truly serves as your knight in shining armour in the event that you have a medical emergency or require medical care for ongoing treatment. Each of your medical expenses following your retirement will be accounted for by your health insurance plans keeping in mind its terms and conditions.
Rising Medical Costs:
Medical expenses are on the rise and your lifestyle today has the potential to impact your medical health in the future. Medical inflation interspersed with rising costs of medical treatments is each capable of creating a burden on your finances. A viable health insurance plan helps protect against these expenses and allows for superior financial planning. As you age, you must also be ready to incur recurrent medical costs implying that the frequency with which you must be expected to pay for the same also increases.
Prior to purchasing a health insurance plan, it is important to understand what you anticipate your medical expenses to be. Should there be a history of a certain disease in your family, it is all the more important to get health insurance such that you are provided for in the event that you also fall prey to said disease. For those who have pre-existing diseases prior to availing of a health insurance plan, it is important to avail of a viable health insurance plan that takes into account your specific medical needs. For such individuals, it is important to avail of health insurance as soon as possible as there exist waiting periods prior to which coverage is available and the need for medical coverage can occur at any time. By accounting for health insurance in your financial planning, you are provided with a sense of security as far as paying for your medical bills is concerned. Health insurance reduces the recurring costs you might incur when you avail of preventative care. Both, health insurance and financial planning are vital aspects that contribute to a balanced life.