The importance of health insurance in your financial planning journey

According to a global survey by brokerage firm Mercer and Marsh Benefits last year, Medical inflation in India is set to touch 11% in 2024, up from 9.6% in 2023.  As prices rise across sectors, the average cost range for several common diseases and treatments in India has gone up:

As rising bills show no signs of slowing down, financial planning has become essential to securing your future. And the importance of health insurance has grown as a means to avoid the drastic effects of medical expenses on personal finances.

In this short read, we explore why health insurance is a vital financial planning tool and how investing in it can help you save more than you think.  

Why health insurance is important to support your financial journey?

Your financial journey is incomplete without investing in a comprehensive health cover. Here are some noteworthy benefits of investing in health insurance planning and using health insurance as a key financial planning tool: 

Shield from increasing medical costs

Rising medical costs can impact your financial stability. Comprehensive health insurance is vital for shielding you from exorbitant medical bills so that your financial stronghold is not compromised.

Access to quality healthcare

Health insurance gives you access to a network of reputed healthcare facilities that ensures you get the best possible medical attention. This helps in sustaining a better health outcome while keeping your financial stability intact.

Family financial stability

Investing in family health insurance planning does not just protect your family’s health, but also safeguards their financial stability. This helps you create a robust financial plan not just for yourself but for those closest to you as well.

Old-age benefits
Medical situations and emergencies can shoot up during old age. That’s why health insurance is important. It protects you from high costs for age-related illnesses and conditions. Financial planning for your old age should not exclude the benefits of having a comprehensive health insurance plan.

Health Insurance Tax Benefits

Under Section 80D of the Income Tax Act, health insurance premiums can be counted as tax deductibles. This facilitates health insurance as an affordable financial planning tool, providing health coverage and tax savings for both individuals and families. 

Comparing and choosing the right health insurance plan
Now that we have established the importance of health insurance, here’s how you can compare insurance plans and choose the right one for maximum financial benefits:

• Quotes: Get quotes from various insurance companies with the help of premium calculators to understand the pricing and compare different plans.
• Brochures: Research by carefully reading plan brochures as they contain in-depth information about every aspect of the plan.
• Financial advisors: Consult financial advisors. They are professionals who know the insurance game inside out and will give you sound advice and guidance.
• Consider these factors: Choose your ideal insurance policy based on factors like your:
  – age
  – medical history
  – income
  – family members (for family insurance plans)

Do not forget to use online premium calculators for better planning

When it comes to effective budget planning and the importance of health insurance, premium calculators are essential tools in estimating insurance costs. Most insurance companies offer such tools to calculate estimates based on factors like age, medical history, and coverage. This way, you can plan your finances with more clarity while securing your future. 

Key Takeaways

Why health insurance is important cannot be overstated in today’s world. It not only safeguards your health but also boosts financial stability. From saving on unprecedented medical expenditures to making the most of tax benefits and other savings, health insurance is a fruitful financial planning tool and a necessary investment for everyone. Research insurance plans and compare features to find the best option for you and your family.