How to Protect Your Savings by Investing in Health Insurance

We all agree to the saying that “health is wealth” but do little to understand the actual dynamics of health. We tend to put very little or no thought about tackling an illness or staying fit. Most of us have become accustomed to an optimistic approach that nothing is going to happen to us, and this is why we rely on the group insurance plan offered by employers. However, if you take into account the increasing cases of lifestyle-related diseases and the rising cost of healthcare in the country, you will realize that in case of an illness, your group medical cover will not suffice. Here is how you can protect your savings by making an investment in health insurance.

  • Cover the basics

The main concern behind health insurance is the financial implication of medical emergencies. If you have the right type of medical insurance, it will not only cover for the cost of hospital charges but also will provide for the pre-hospitalization and post-hospitalization expenses. A basic cover will ensure that hospital bills are the last thing on your mind in case of an emergency. The insurance will provide a number of cashless options thus making it easier for you to get access to quality healthcare.

  • Be prepared for the worst

We live in a time where all of us are prone to a number of serious illnesses ranging from cancer to heart diseases. A group health insurance might not be enough to tackle these issues. Hence, when you choose online health insurance with comprehensive coverage, you are preparing for the worst. Health insurance premiums are cheaper if you begin planning at a young age. You can also opt for critical illness covers to prepare yourself against any serious health issue.

  • Tax benefit

A great benefit of health insurance is the tax benefit. You can save up to INR 25,000 on the premium amount paid for self, spouse, and children. This exemption is available under Section 80D of the Income Tax Act, 1961. Further, if you are a paying premium for your dependent parents, you can get an additional benefit of INR 25,000 if your parents are aged below 60 and INR 50,000 if your parents are above 60.

  • No claim bonus

You can benefit from a ‘no claim year’ in your health insurance plan if you do not make any claims throughout the year. You can enjoy a 10% bonus of the sum assured for each claim-free year. The bonus ensures that you are rewarded for staying healthy.

When you invest in health insurance, you ensure that your savings are not drained in case of a medical emergency. You can ensure complete coverage from your health insurance policy. Compare different plans available and then make a decision keeping your financial goals, age, and health condition in mind. You will be able to get an extensive cover at a low premium. Consider the possibility of a critical illness and then opt for a critical illness cover to ensure that you are completely protected at all times. You need to understand that health insurance is not an option and is an absolute must for individuals of every age.

Jeffery D. Silvers
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