Financial health is a mix of all your savings, investment, and your policy, which together can determine just how secure you are in times of need or emergency. However, people often step back when it comes to buying insurance as they do not earn returns on it. One of the misconceptions that people often have with financial planning is that most of them think saving money or parking it in instruments with good returns is enough.
However, they forget to factor in the rising cost of health and medicare including , and if an emergency like the pandemic strikes, hospital bills, treatment cost, basic hospital and doctor expenses can alone pull you back financially for years to come. This is exactly where health insurance plays a vital role.
The key to maintaining your financial health is planning, analysing, and ensuring that you follow your financial planning religiously. Take that first step towards saving for your future goals while offering a holistic medical cover for your family with health insurance policies.
How Does Health Insurance Help You Plan Your Finances Better?
Life is uncertain and if you have not started planning and saving for your rainy days, then an emergency could rattle you easily. Financial planning can ensure you do not get caught by surprise with whatever life throws at you.
A comprehensive assessment of your current expenses, liabilities and your assets, coupled with goals you want to achieve in the short or long term will help you pan out your finances easily.
- Analyse Your Expenses
Before you put your money into any kind of investment or saving plans, know how much you are worth in present times and how much do you and your family have stashed in for rainy days.
Next, you must know about the immediate expenses you need to look after and the long-term expenditure you can foresee. It is important that you have a good idea about your current and future expenses and how much of a nest egg your family already must fall back on.
Knowing this will help you plan your investments and ensure that you save enough for emergencies and to take care of your family too.
- Recurring Medical Costs
These are basically the type of costs that an individual encounters in their old age and if you do not have a health insurance policy already in place then your finances could take a great toll alongside your health.
The unforeseen critical illnesses and rise in lifestyle diseases require a lot of money for treatment and medicare, and it could become tough to manage that at an older age.
- Post-Retirement Benefits:
If you have a health insurance policy then it becomes a little easier to manage expenses once you retire from your job or business life. Besides, it becomes easier to manage all your other post-retirement goals like travelling the world or buying a new home etc if your health expenses have already been taken care of.
In the wake of the current pandemic, everyone’s vision towards health insurance, or even insurance in general, has drastically shifted from just another tax-saving tool to a financial necessity. You can check out the types of COVID-19 insurance policies available with different insurance providers and buy a specific health cover to suit your family needs.
How Can the Best Health Insurance Policy Help You Save Tax?
The key to any sound financial planning is having the right insurance cover. An insurance policy, like health insurance, for example, will not only offer an extensive coverage to you and your family but also help you save tax and plan your finances better.
A health insurance plan will offer tax benefits besides medical over and financial protection. Under section 80D of the Income Tax Act, deduction of Mediclaim premium applies to senior citizens, HUF and earning individuals at large. The premiums paid towards the health insurance of individuals who are less than 65 years of age, will qualify for a tax deduction. You can also claim a tax deduction on the premium being paid towards the health insurance policy of a dependent parent.
Experts recommend getting insured and taking care of your health before starting to invest. Once you have sorted that aspect of your life, you can live stress-free and enjoy it to the fullest. Buy a health insurance policy today and take that first step towards planning your finances better.
