Financial Planning involves listing out your needs and wants, and deploying the money in the right avenues so that you have it when you need it. It can help you cut losses, enhance your gains, and avoid the panic of a financial or life stage crisis. It would help if you didn’t confuse your insurance and investment options. With the rise in the cost of healthcare in India, securing your family with the right medical insurance plan should be a priority. The amount of cover you take should depend on your life stage, income, dependents, and requirements.

It is advisable to plan financially for healthcare and get a medical insurance plan as early as possible as health issues come uninvited. Early planning also helps your savings get time to multiply and grow.

A medical insurance plan provides the policyholder with financial assistance in case of any medical emergency. It offers coverage for expenses such as hospitalization and treatment towards accident and pre-specified illnesses for a specific sum assured limit. The medical premium is based on the sum assured. It reimburses your actual medical expenses, either through direct reimbursement or cashless hospitalization opportunities.

Why Is There A Need For Health Insurance?

There are various types of medical insurance plans available in the market. These are classified based on the cover they provide. The policies target each section of the society, such as individuals, families, or exclusively for senior citizens to take care of their needs accordingly.

Below are the reasons why you must include medical insurance while planning your finances:

Quality Healthcare

A medical insurance plan is a contract between an insurer and a policyholder to provide coverage for unexpected health care costs which are usually very high. To receive the benefits, the policyholders have to pay a premium. The premium paid is much less than the amount required is paid entirely out-of-pocket.

It is essential to buy a health insurance policy for yourself and your family as quality medical care is expensive. Private hospitals provide services at a premium. Without a good health insurance policy, any medical emergency can shake up your finances.

Financial Security

One cannot underestimate the importance of having a medical insurance plan. The medical costs are skyrocketing.  A small procedure or hospitalization can completely wipe out a lifetime of savings. With inflation, the prices of all medical procedures have gone up significantly. Admission for a few days after a process only adds more zeros to your invoice. With a health insurance policy, you can afford the sky-high expenses of healthcare.

Critical Illness Cover

A policy for a severe, possibly terminal disease, which is strictly defined by the insurer. Most critical illness policies provide for the payment of a lump sum benefit if the policyholder is suffering from any of the specified conditions.

When you apply for a medical insurance plan, it is essential to disclose all your medical history to get the most suitable policy.

Tax Benefits

You can avail tax benefits under section 80 D of the Income Tax Act, for up to Rs 25,000 per annum when you buy a medical insurance plan in India for your family.

You must be responsible for you and your family’s health and start saving and investing early in suitable health insurance.

Comprehensive Medical insurance plans from reputable insurers such as TATA AIG provide an opportunity to avail online health coverage which helps you prepare for unfortunate events. It consists of the following features:

• Pre and Post Hospitalization expenses
• Cashless Hospital Benefit
• Day Care Treatment
• In-Patient Treatment
• Global Cover
• Accidental Death Benefit
• Critical Illness cover
• Domiciliary Treatment
• Tax benefit under Section 80C
• Lifelong Renewal