Health Insurance Benefits: Health insurance not only ensures your physical health, but it also protects your physical and mental health…
When talking about personal finance and investment, we often talk about methods like stocks, mutual funds, PPF. These investment options are really important for wealth creation, but there is one aspect that we often ignore, which is essential if not the most important and that is health insurance.
I strongly believe that investing in health insurance goes beyond the traditional notion of expense. This is a strategic and far-sighted financial decision. In today’s times when health related uncertainties have increased, taking out a good health insurance is not only prudent but also an important step towards securing the future of you and your loved ones. Let us know why health insurance is important and what are its benefits…
Security in the face of rising health care costs
India’s current medical inflation rate is around 15% and OPD or out-of-pocket expenses (which are mostly not covered under normal mediclaim policies) comprise around 60% of all treatment expenses. If there is a sudden need of money or there is some chronic illness, then a lot of money can be spent.
More than 9 crore Indians spend more than 10% of their household income on health care, according to the findings of the Sustainable Development Goals National Indicator Framework Progress Report 2023 published by the Ministry of Statistics. What is even more worrying is that 31 million of them spend more than a quarter of their income on health care.
The biggest reason to consider health insurance as an investment is that the cost of health care is continuously increasing in India. Medical expenses, especially on serious illnesses or surgeries, can be financially debilitating. By taking a health insurance policy, you protect yourself and your family from the potential burden of health-related expenses. This financial security can be invaluable, protecting your hard-earned money and investments.
access to good treatment
For me, the most important aspect of health insurance is that it gives you access to the best treatment and it is available when you need it most. Health insurance policies often come with a network of empaneled hospitals and healthcare providers. This means you get quality treatment and access to the best specialists. In case of an emergency or a conscious decision to seek treatment, you can avail cashless treatment, saving you the trouble of arranging money at the last moment. This can greatly increase the chances of receiving timely and effective treatment, which is important for a full recovery in any condition.
Access to good care contributes to the efficiency and effectiveness of the overall health care ecosystem. It promotes healthy competition among healthcare providers to maintain high standards of healthcare. It also helps in the adoption of new medical technologies, which ultimately benefits all policyholders and the overall health care system.
Security of your savings and investments
Health related problems can arise at any age, and the cost of treatment can bother you. Most people rely on their savings in case of sudden medical need, but with inflation it is never enough to afford the treatment. Consider your savings and investments as the foundation of your financial security and future goals.
Health emergencies can quickly deplete these resources. Having a health insurance policy ensures financial protection against such unexpected circumstances. This includes hospitalization, surgery, medicines, diagnostic tests and other medical treatments.
By investing in health insurance, you create a circle of protection for all your financial assets. This ensures that your savings and investments remain intact, so that you continue to meet your long-term financial goals and aspirations.
Peace of mind
Health insurance is an intangible but valuable form of protection. This gives you peace of mind. You know that you and your family are protected in case of illness or unexpected medical need. This reassurance reduces the stress, anxiety and uncertainty that is often associated with health challenges.
Overall, this peace of mind strengthens people emotionally. This can have a profound impact on overall mental health, reducing the psychological burden associated with the financial and logistical aspects of health care. It increases people’s capacity for perseverance, adaptability and productivity.
Tax benefit
Apart from meeting future expenses, health insurance premiums can be beneficial in the present as well. The premium paid for health insurance is subject to tax deduction up to a limit. Having health insurance reduces your overall tax liability. In India, health insurance premiums paid for you,
your spouse, children and parents enjoy tax deduction under Section 80D of the Income Tax Act. This deduction is an attractive incentive to invest in health insurance. This way you not only safeguard your family’s health, but you are also able to reduce your taxable income, resulting in potential savings that can be channeled into other investments.
Invest early, invest for the long term
It is important to start early as it gives you lower premiums and comprehensive coverage that will last you a lifetime. When you take out a health insurance policy early, you start building a health history with the insurance company. This can be beneficial in the long run, as any health issues that may arise in the future will be covered without having to wait or postpone them.
Remember, your health is your most precious asset. Investing in health insurance is consistent with a broader perspective of health and well-being. It promotes a proactive approach towards health care and encourages regular checkups and preventive measures to maintain a healthy lifestyle.
