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Why Should Health Insurance Be A Part Of Your Financial Plan?

Over the past few years, the cost of healthcare has significantly increased. A sudden medical emergency can burn through savings, making having affordable health insurance crucial. 

Depending on a person’s needs, different plans are available, such as critical health insurance, family floater plans and more. These health insurance policies play a crucial role in individual financial planning. 

Reasons to Buy Health Insurance For Financial Planning 

With a sedentary lifestyle and unhealthy eating habits, health is a major concern among individuals. Any health-related concern can deplete an individual’s savings. Therefore, people prefer to buy health insurance plans for financial planning.  

Here are some reasons to incorporate health insurance into your financial planning.

Coverage Against Medical Crises 

One reason to buy affordable medical insurance is that it offers coverage against medical crises. Unforeseen medical expenses can greatly affect an individual’s physical and mental well-being. 

It also brings additional financial expenses, which can be difficult to manage without an individual health insurance plan. It offers a profound sense of relief to individuals, knowing that their medical expenses are taken care of in their time of need, providing them with peace of mind.

Retirement Planning 

Retirement usually signals the end of actively earning a fixed income. In such cases, if you don’t have an affordable health plan, dealing with medical treatment costs can be challenging and can drain your retirement savings. 

Hence, having a health insurance policy in place can prevent this from happening, making it a valuable addition to your retirement planning and financial planning as a whole. 

Coverage for Family 

When you have a family to care for, their health becomes a top priority, and it is natural to set aside savings for unforeseen medical situations. However, with a family health insurance plan, you can ensure comprehensive medical coverage for your entire family. 

These plans not only safeguard your loved ones but also help you save financially by covering a range of healthcare expenses, allowing you to protect your savings. 

Tax Benefits 

Another crucial reason health insurance plans are part of financial planning is the number of tax benefits. Those who file income tax returns look for ways to save money and health insurance plans are the safest option in such cases. 

Under Section 80D of the Income Tax Act, the premium paid for health insurance plans is eligible for deductions.

Rising Medical Cost 

Due to the rapid rise in medical inflation, healthcare costs have become increasingly burdensome. An unexpected medical emergency can severely impact an individual’s finances, leaving them vulnerable. 

However, with the right individual health insurance plan, you can access quality healthcare at authorised facilities without the worry of financial strain. 

 Conclusion 

Investing in a health insurance plan is crucial for financial planning. However, most people go with cheap medical insurance without anticipating their healthcare needs. 

It is best to buy affordable health insurance that fits your budget and requirements. Also, purchase a plan from a reputable insurance provider.

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