Health Insurance in Long-Term Wealth Protection
When it comes to securing your financial future, the first worry that comes to mind is related to health. Currently, the healthcare cost is rising significantly, making it difficult for people to save money for their future in case they are dealing with health issues or suddenly face any health crisis. In such scenarios, the most useful tool that helps you save money as well as get the best treatment possible without the headache of emptying your pockets is getting a health insurance policy.
With a comprehensive health insurance plan, you are able to incorporate long term wealth protection. Insurers like ACKO have also made health insurance more accessible and customisable, aligning with the growing need for financial preparedness. So, keep reading to understand the role of a proper health insurance plan for long-term financial planning and protection.
If you have a health insurance policy, it safeguards your hard-earned money from high medical bills. Serious illnesses, accidents, and procedures often lead to a major increase in costs. When you lack insurance, you may have to rely on your savings, get a loan, or sell important belongings. Whereas, if you have health insurance, you will not have to pay much for your medical treatments. It also enables you to plan out your finances, as you will pay the same premium yearly or monthly, as per your choice.
As a result, your savings are secure and you can use them for education, buying a house, or saving for retirement. Having health insurance gives you comfort knowing that your medical emergencies will not empty your bank account.
Health insurance plays an important role in protecting your wealth through providing comprehensive medical expenses, lowering out of pocket costs and managing unexpected medical emergencies without exhausting your savings.
Let us look at how health insurance can assist in protecting wealth in the long run:
● Tax Benefits
Health insurance helps in getting tax deductions during tax filing. Section 80D of the Income Tax Act 1961 makes it possible for you to claim a deduction when you pay for health insurance for yourself and your family. With this, your taxed earnings are reduced every year. Over time, the taxes you avoid paying contribute significantly to your savings and investments.
● Cumulative Bonus
A cumulative bonus, also known as a no-claim bonus (NCB), rewards policyholders for not making any claims during a policy year. At the cost of the first premium, the cumulative bonus is added to the sum insured during policy renewal, thereby increasing coverage without a corresponding rise in premium amount.
Thus, the declared bonuses can enhance the Insured’s capacity over time, helping a lot when faced with a future medical crisis. The bonus is, therefore, an incentive to continue good health and avoid minor, unnecessary claims.
● Financial Coverage
Most health insurance plans cover various medical expenses. Such services involve visiting a doctor, undertaking different tests, spending time in the hospital, undergoing surgeries, and receiving aftercare. Some policies also support alternative methods, such as Ayurveda or homoeopathy. With insurance, you do not have to pay much for medical services. Due to this, you will be able to keep the money you save for emergencies and other important uses.
● Medical Costs Coverage
High inflation or better technology in medicine has caused the mounting cost of medical health treatment. Typically, a medical health policy will pay for consultations with doctors, diagnostic tests, hospital stays, medications, and surgery.
Some also pay for preventive health checkups and pre-hospitalisation, and post-hospitalisation expenses. This reduces the financial strain on the insured, allowing access to quality healthcare without the worry of depleting personal savings or taking loans.
● Increases Health Awareness
When an individual is covered under a health insurance policy, it is generally seen that people start being proactive to their health. Different insurance insurance providers offer different wellness programs, regular health checks or discounts in premium for maintaining a healthy lifestyle. By prioritising self-care, individuals are easily able to reduce the risk of serious illnesses and avoid high medical expenses in the future. This ultimately supports both their health and financial stability in the coming days.
Final Words
One of the first steps to take towards long term wealth protection is prioritising and protecting your health. The availability of digital health insurance plans with wide coverages and different add-ons helps policyholders balance their health and wealth easily. Cashless hospitalisation and no-claim bonus benefits ensures you are financially protected during challenging times. This leads to healthy saving habits and better financial planning for the future.
