Invest in Health Insurance for Better Financial Management

Personal financial management is crucial for everyone who wants to lead a comfortable life and secure future financial health. The concept of personal financial management is based on five important pillars of financial planning: income, expenses, savings, investments and insurance. The importance of insurance, especially health insurance, is often overlooked while managing the other four pillars. Most people do not have basic health insurance coverage even today.

Considering the modern lifestyle and rising medical inflation, investing in health insurance is essential to protect your savings during medical emergencies. In this blog, we will take a closer look at the role of health insurance in better financial management.

6 Reasons To Invest in Health Insurance For Your Financial Health

A health insurance policy provides coverage against medical expenses and protects you from any financial burden during a medical emergency. It helps you focus on your recovery by taking away the stress of the treatment expense. Hence health insurance not only helps you maintain your physical health but also your financial health. Here is why health insurance is important for your financial planning.

1. Plan For Medical Emergencies

Life is uncertain. Therefore, you need to be prepared in advance for any crisis. It is one of the major reasons why health insurance is important. Moreover, the sedentary lifestyle is causing unexpected health conditions even in the younger population. Your only choice is to invest in health insurance early in life. It is the best tool to deal with any unforeseen medical emergency because,

• It saves you from draining your finances by covering medical costs.
• It provides much-needed medical support during a medical crisis by making the best healthcare accessible to its customers. Health insurance companies have a network of empanelled hospitals where you can get cashless service during an urgent medical situation.

If you are planning to buy a health insurance plan, choose a policy that offers comprehensive coverage for you and your family. Check Aditya Birla Activ Assure Diamond Health Insurance Plan, a budget-friendly comprehensive health insurance plan offering 360o protection.

2. Prevent Financial Crisis and Cover Whole Family

A medical emergency can wipe out your savings in one go. However, if you have a health insurance policy in place, you will not need to use your savings to pay for medical expenses. Thus a health insurance plan helps you better manage your finances by preventing a financial crisis. It lets you save and invest money without worrying about a medical need. You pay an affordable premium for a health insurance policy. In return, it takes care of your family's entire healthcare budget without draining your finances. This lays a lot of emphasis on the importance of health insurance.

Aditya Birla Health insurance offers an Active Assure Diamond with Super health top-up combi health insurance plan that covers your entire family adequately. It covers medical expenses up to ₹1 cr so that you can fulfil the needs of all your family members without worrying about your savings and investments.

3. Better Financial Management at Young Age

Do you know why health insurance is important at a young age? Buying a health insurance policy at a young age helps you get better health coverage. It also helps you manage your finances better and lets you focus on making long-term investments. The premiums you pay are much lower because your chances of getting sick are fewer. Moreover, you get rewards for maintaining good health. Along with it, you can also enjoy tax benefits throughout your work life and don't have any waiting periods when you need to make claims.

4. Retirement Planning

The importance of health insurance rises manifolds for your retirement as you no longer have a regular income source. Instead of waiting for your retirement to invest in health insurance, buy a health insurance plan with lifelong renewability when you are young. This way, you can get comprehensive coverage at a much lower premium. With a health insurance plan to cover all your medical expenses, you can use your retirement corpus for other purposes and maintain good financial health.

5. Plans for Different Types of Medical Needs

Nowadays, insurance companies offer tailor-made health insurance products to fulfil specific needs and aid in better financial management. They also do that to emphasise the importance of health insurance. Some plans provide coverage for critical illnesses. Some are specially designed to cover the medical expenses of senior citizens, which include health check-ups, OPD consultations, alternative treatments etc. You can get health insurance coverage according to your medical needs.

Aditya Birla health insurance company also offers plans designed to meet the specific needs of its customers. Activ health platinum enhanced insurance plan covers modern treatments and chronic illnesses with premium waiver benefits on the diagnosis of listed critical illnesses. Activ Fit plan is a plan designed for youth and rewards them for staying fit and active. The plan offers maternity cover, hospitalisation cover, 100% refill of the sum insured and many more health benefits.

6. Tax Benefits

Tax benefits are yet another reason why health insurance is important. Health insurance plans also help in saving taxes. The premiums paid towards a health insurance plan are used for tax deduction under section 80D of the Income Tax Act. You can claim deductions up to ₹ 1 lakh for premiums paid from your taxable income. The amount you save in taxes can be utilised to enhance your investments. Tax savings help in better financial management and help you achieve your financial goals.

Conclusion

Health insurance helps you get the best medical care, irrespective of medical costs. It helps you manage your health without the stress of finances. You no longer need to delay medical treatments due to lack of funds or settle for substandard healthcare services. There are a variety of health insurance products available in the market today. You can easily explore and compare various plans online and find the most suitable one.

Aditya Birla Health Insurance (ABHI) company offers a range of products that cover your medical expenses. They also reward you for staying fit and healthy. To know more, visit ABHI's official website and explore their plans for better financial management as well as health management.