Health is Wealth- we have often heard the saying. So, when it comes to financial planning in health, we have to be meticulous enough. Since health is a very important facet of life, the finances that we include in health or plan to invest in it should always be in a balanced manner. By this, we mean it should have a proportionate share in the family finances. So, let us discuss more about health insurance in family finances. Keep reading the article as we progress more on this topic.
Why is Health Insurance Needed?
As mentioned earlier, health is a very essential and crucial part of life. We cannot overlook it. So, health insurance is widely needed to ensure smooth functioning during distress in times of emergency medical conditions. It is a common notion to ignore health. But as we make our way through our everyday stressful lives, health should not take a backseat. Besides, health insurance provides a sense of security and support that every individual needs when they are in a crucial medical emergency.
In the next section of the article, we will be deliberating more on the role of health insurance. So, head to it now!
What is the Role of Health Insurance?
Folks, as we keep stressing about the word ’ health,’ we also should focus on the financial requirements that go into curing someone. So, health insurance makes sure in such times of distress, the individual is not lagging behind in financial ways and gets the best of financial help. Let us discuss some other roles of health insurance in family finances:
- Accessing Better Healthcare: When we talk of the best healthcare facilities, we must consider the cost of access. However, when you have a backup of healthcare insurance, you know you are safe in getting the best treatments. Your family and you will be getting adequate and prompt treatments as and when required. So, healthcare is a worthy investment.
- Tax Benefits: This is another great benefit that you get when you have health insurance. The premiums that you will be paying for the health insurance policies can be claimed for income tax deductions under Section 80D of the Income Tax Act. This will give you an additional benefit and a great reason for incorporating healthcare insurance into your family policy
- You will Get Financial Protection: One of the best benefits of having health insurance is you will not have to worry about finances when you get your treatment. Because the health insurance will be covering up the cost of your treatment. Additionally, it gives a sense of security in financial backup. It effectively ensures that you will not be needed to put your financial stability to access quality healthcare.
Are these reasons enough to do health insurance? If not? We have more reasons to give. So keep reading!
Other Important Roles of Health Insurance:
If you are not convinced yet to incorporate your health insurance into family finances, then here are some other reasons.
- Peace of Mind: One of the most important roles that health insurance plays are giving you peace of mind. With health insurance, you will not have to worry about accessing the superior and the best treatment because the insurance will financially cover you. This huge relief will give you a sense of peace. Hence, health insurance is a great investment.
- Great Investment: Needless to mention, investing in health is never a waste, but when you invest in health insurance. You know that you have invested in the right place. With health insurance, you will always be prepared to face medical emergencies and have a financial backup in dealing with any kind of medical emergency. Some health insurance also provides added benefits such as discounts and coupons.
So, folks, these are some reasons you should incorporate health insurance into your family finances. But how do you know which is the best health insurance policy to invest in? So, head to the next section of this article.
How to Choose the Best Health Insurance?
Folks, in this section of the article, we will be listing out some of the key factors that you can consider while you are looking to invest in a health insurance policy. Let’s get started!
- Hospital Networks: One of the great ways to choose the right health insurance policy is to check the hospital networks affiliated with the insurance company. Another thing that you must keep in mind is to check whether your preferred hospitals and healthcare facilities are included in that insurance company along with the ones close to your vicinity. This will ensure a smooth transaction in healthcare
- Type of Policy: Be aware of the type of policy which you are opting for. For example, in India, there are two types of health policy- individual and family. The preferred one is the family health policy, as you will be getting all the healthcare benefits in one single policy. This will be an effective solution for families.
- Waiting Period: Another important factor that you can choose to look at while opting for a health insurance policy is the waiting period. You must be aware of the waiting period for pre-existing illnesses. Also, most policies impose a waiting period that does not cover pre-existing conditions. Hence, go for a policy with a shorter waiting period if possible
- Premium Costs: Make sure to look into the premium costs that come with each policy. Do not be hesitant to compare the premium costs with other insurers. This will provide you an insight into the amount which is as per your budget and will help you in choosing the right policy. Also, do not get swayed away by lower premiums and always prioritize comprehensive coverage; lack of coverage will be troublesome for you in the long run and will leave you at large with financial vulnerability.
- Claim Settlement Ratio: Look into the claim settlement ratio of the insurer. It will reflect the number and the percentage of claims that the company will settle. A higher ratio will suggest to you a greater likelihood that the insurer will promptly honor your claims.
- Critical Illness Coverage: Another important factor while opting for a health insurance policy is to look at the critical illness coverage that the insurance provides. You must review the list of illnesses carefully and also look at the terms that will govern the payouts. You need to select a policy that will align with the potential number of health risks that your family will face. So, make sure to look at this factor carefully.
Folks, these are some of the factors that you must keep in mind when you are opting to choose a health insurance policy. In the next section of the article, we will be discussing a financial strategy that will help you to incorporate a health insurance policy into your family finances. So keep reading!
Financial Strategy to Include Health Insurance Policy in Family Finances:
Folks, in this section of the article, we will be listing down a few strategic points that you can consider that will help you to incorporate health insurance policies into your family finances. So, without any delay, let us get started!
- Allocation of Budget: Make sure you are dedicating a particular portion of your income to health. By doing this, you can easily incorporate a health insurance policy into your family finances.
- Maintaining Emergency Funds: Make sure to maintain an emergency that will not be included in your health provisions. This fund should be sufficient to meet unforeseen medical emergencies, expenses, and other healthcare costs
- Review and Renewal: Make sure to review your health insurance policy so that it complies with your family’s medical needs. Also, regularly update the sum insured and the coverage based on life stage changes and inflationary factors.
- Visiting for Regular Health Checkups: Folks, make sure you encourage all your family members to go for a regular health checkup. Also, emphasizing preventive healthcare for identifying potential health issues early reduces the need for extensive medical interventions.
These are some of the strategies that you can adopt for incorporating health insurance policies into your family finances.
Conclusion:
Health is a great asset; taking care of it is our responsibility. Hence, health insurance policies are a great way to fulfill that responsibility effectively. Health insurance policies must be incorporated into family finances. In this article, we have briefly discussed health insurance policies and their effective incorporation into family finances. That’s all, folks. I hope the article will help you get all the information you need.
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