Health insurance is a necessary financial safeguard against unanticipated medical emergencies. In addition to this coverage for medical care, purchasing a health insurance policy offers numerous other advantages that can help safeguard your savings, such as tax benefits, cashless claims, and more.*
Investing in Health Insurance: Six Ways to Safeguard Your Financial Future
Health insurance will protect your and your family’s finances in several ways.
- Provides Financial Protection
Due to medical inflation, a health concern can deplete your savings. If the costs are excessively high, you may be required to obtain money from family or friends or take out a loan, thereby incurring debt. However, with a health insurance plan, these out-of-pocket expenses will be drastically reduced, as your insurer will cover most of your medical expenses while preserving your savings.*
- Covers Medical Expenses
A family health insurance plan extends beyond hospitalisation and catastrophic events. It includes critical and chronic illnesses, psychiatric care, maternity expenses, ambulance fees, alternative treatments, post-hospitalisation-related expenses, and annual examinations.*
- Cashless claims offer enhanced security.
There are two significant categories of health insurance claims. Reimbursement (in which you receive treatment and then have your hospital expenses reimbursed by your health insurer) and cashless claims (in which you receive sanction for the treatment and the insurer pays for it) are the two types of claims.*
With a contactless claim, you can receive hospital treatment without making any out-of-pocket payments (other than any applicable deductible or copayment), as the insurer will pay the hospital directly. Thus, you need not pay any upfront costs and will be able to preserve your savings.##
- You might obtain a cumulative bonus.
You receive a cumulative bonus if you do not submit a claim during the policy year. This monetary benefit may consist of a concession on your premium for the subsequent policy year or an increase in your sum insured without an increase in your premium.*
Therefore, you receive the same coverage for less money or more coverage for the same price, both of which are excellent methods to save money on your health insurance plan.*
- Annual health examinations can reduce expenditures
If you have health insurance, you often receive free annual exams. In addition to ensuring that you are aware of your health, these examinations can detect problems that would otherwise likely go unnoticed.
- There are tax benefits.
Having family health insurance plans can lower your taxable income. Section 80D of the Income Tax Act 1961 allows you to claim tax benefits if you purchase a health insurance policy for yourself, your spouse, your parents, or your children.**
Therefore, a health insurance policy is an excellent way to defend your financial security and family. With access to the health insurance premium calculator, one can manage their financial means with the rising medical expenses. Health insurance acts as a hedge against unexpected medical expenses in such situations. It is a modest investment that yields substantial returns.*
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*Standard T&C Apply
** Tax benefit is subject to change in prevalent tax laws
## All savings are provided by the insurer per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.