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Planning your finances for the future is a must towards ensuring a secure future. While many people learn about investments to park their money in, very few realize the significance of including health insurance in their finance portfolio as an essential measure to wave off the stress stemming from rising healthcare costs. Health insurance planned carefully is an investment in disguise.

When you buy a health insurance policy, you pay an insurance company a small annual sum called the premium. So, when a medical emergency strikes and you apply for the claim, the insurance company covers expenses equivalent to the sum insured limit, which is decided before signing the policy agreement. This means you don’t dip into your savings to cover medical costs. And this alone makes it extremely important to have health insurance as a part of your financial planning.

Looking for more reasons to include health insurance as a part of your financial planning process? Read on to find out.

To make the process even more hassle-free, many insurance companies also partner with hospitals to streamline processes. This makes the redemption process simpler.

2. Safety Against Rising Medical Costs

Saving is easier when there is an end goal in sight. But the rising costs of treatments and medication mean that saving goals increase continuously. This makes accomplishing these goals taxing, especially if you do not have significant funds to put away for savings. Once again, health insurance policies can help.

You can divulge a small amount towards your insurance premium annually and be assured of coverage for medical expenses as stated by your policy.

The best part? If you have a new member in your family, adding them to the family insurance plan is easier than ever. You only need to request your insurance company and pay an added premium.

4. Additional Cover Above Employer Health Insurance

Many of us avoid buying health insurance, simply because we are covered under the corporate health plan. Most also feel that as they are healthy, they should avoid spending their money on health insurance, forgetting the fact that healthcare inflation is rising at an alarming rate. As per the report of the National Sample Survey Organisation (NSSO), the average medical expenditure per hospitalized person if treated in private hospitals is always much costlier.

The time you change or lose your job or start your own venture, you will not be covered under the corporate health insurance & taking the health Insurance in later stage of life with multiple conditions to cover or not to cover many things may create stress.

It is strongly recommended to have your medical insurance plan over and above any policy that may cover you during employment and continues to offer coverage after retirement also. In this way, you can ensure that you don’t need to dip into savings or investments to meet medical expenses.

You can easily choose a health insurance policy that covers your medical expenses well after you retire, and rest assured your medical expenses will be taken care of.

6. Tax savings

Those who have engaged in financial planning understand that claiming tax exemptions can reduce their tax liabilities and, thereby, their spending. But did you know that getting health insurance can help with it?

You can claim tax deductions for healthcare expenses under Section 80D of the Income Tax Act. This includes costs incurred towards health insurance policies. Note that the tax deduction applicable depends on the family members included in the health insurance coverage.

According to the law, if the insurance covers the insurer's immediate family, including partner and dependent children, they can claim up to Rs. 25,000 in tax deductions provided the family members are under 60 years. If the policy covers the insurer, their parents, the spouse and other family members, all of whom are under 60, the insurer can claim up to Rs. 50,000 as tax deductions.

Moreover, if the policy covers the insurer, their spouse and dependent children under 60 years old and parents above 60 years, they can claim up to Rs. 75,000 in tax deductions. And finally, if the insurer, their spouse, dependent children and parents are over 60, they can claim up to Rs. 1,00,000 in tax deductions.

Now that you know the reasons why health insurance policies should be a part of your financial planning,it is crucial to understand all the features and terms and conditions of the insurance policy so you’re aware of exactly what you’re covered for.

Because of the rising complexity of health insurance policies and options, we at Wealth360, educate you with the suitable health insurance solutions that are right for you in absolute term with your best interest.