Why Does Every Investor Need Health Insurance? A Financial Perspective

While the saying 'Health is wealth' is widely recognised, few truly embody its essence daily. This is particularly evident in India, where a significant portion of the population still relies heavily on personal savings to cover medical expenses. In fact, out-of-pocket expenditure remains a substantial component of total health spending in the country.

Fortunately, health insurance offers a solution to mitigate these financial burdens. When you purchase a health insurance policy, you agree to pay an annual premium to an insurance company. In return, the insurer covers expenses up to the predetermined sum insured, as outlined in your policy agreement, should a medical emergency arise. This arrangement allows you to preserve your hard-earned savings, protecting them from being depleted by unexpected medical costs.

Health insurance provides financial security, making it an essential component of any comprehensive financial plan. By safeguarding your finances against the unpredictable nature of health-related expenses, you can maintain greater control over your overall financial well-being.

Are you curious about additional ways health insurance can enhance your financial planning strategy? Continue reading to discover more compelling reasons to incorporate health coverage into your financial roadmap.

6 Reasons for Investors to Include a Health Insurance Policy

Here is a list of the top 6 benefits of buying Health Insurance Plans for investors:

1. Financial Protection Against Medical Emergencies

Healthcare costs in India are escalating rapidly, making medical emergencies a significant financial burden. Health insurance plans cover hospitalisation expenses, doctor consultations, surgeries, and other medical treatments.

These plans also offer cashless hospitalisation, pre- and post-hospitalisation expense coverage, and tax benefits. With health insurance, you can avoid financial stress during medical emergencies.

2. No Room Rent Capping

Health insurance policies from reputable providers offer No Room Rent Capping. In other plans with room rent capping, the hospital bill is affected if you choose a room that costs more than the allowed limit.

With no room rent capping, you can choose any hospital room you prefer without it impacting your hospital bill.

3. No Deductions on the Claim Amount

When filing a claim, there are several factors to remember, such as co-pays, deductibles, and non-reimbursable medical expenses, all of which can raise your out-of-pocket costs. However, health insurance plans from reputable providers can help minimise these expenses.

They do not factor in co-pays, deductibles, or similar elements when determining the claim amount. This results in minimal deductions, potentially saving you significantly during a medical emergency.

4. Protection Against Inflation

Reputable insurance companies understand the significance of inflation protection and include this feature in their Health Insurance Plans. At every renewal, you will receive a percentage increase in the sum insured based on the plan's terms.

This increase under the Inflation Protection benefit is calculated using the plan's initial sum insured.

5. Retirement Planning

Many individuals plan for their post-retirement needs by starting a retirement fund. However, they often overlook the fact that health issues tend to increase with age. Coupled with rising healthcare costs, treatments can become quite expensive. With limited income after retirement, managing these expenses during emergencies can be challenging, and your retirement savings may not suffice.

Health insurance can provide a solution. By selecting a policy that covers your medical expenses well into retirement, you can ensure that your healthcare needs will be addressed without financial worry.

6. Tax Savings

Individuals who practice financial planning know that claiming tax exemptions can help lower their tax liabilities and overall expenses. But did you know that obtaining health insurance can also contribute to this?

You can claim tax deductions for healthcare expenses under Section 80D of the Income Tax Act, including health insurance policy’s cost. Remember that the available tax deduction varies based on the family members covered by the health insurance.

Conclusion

If you're seeking to enhance the coverage of your standard health insurance policy in India, various health insurance add-ons or riders are available to consider. These optional benefits can be added by paying an additional premium.

However, with the ACKO Platinum Plan, you won't need to purchase these essential add-ons separately. The plan includes features like Room Rent Waiver, Doctor On-call services, coverage for non-medical expenses, and more, all included within the policy.

Disclaimer: The stocks, policies, and companies mentioned above are not recommendations from Finology Insider and should not be considered a substitute for professional advice. We strongly recommend consulting a financial professional or conducting thorough research before making any investment decisions.