Unforeseen medical emergencies are on everyone’s minds right now. People are stuck home and confined to living a sedentary lifestyle. With the ongoing pandemic, the stress of falling ill is at an all-time high. Many have upped their Vitamin C intake this year with the goal of boosting their immunity. Your portfolio may already comprise of SIPs in mutual funds with an array of other investment products such as Portfolio Management Services (PMS), bonds, debentures, and mire. Here are 5 reasons to add health insurance to your portfolio so you can boost your financial security too.
1. It Covers More Than Just Hospitalization
Depending on the policy you choose, health insurance can cover you for your hospitalization, ambulance, OPD, vector-borne diseases, surgeries, scans, and daycare procedures. Most health plans also come with maternity benefits for new or soon-to-be mothers. You can cover the health expenses of any complications experienced by your newborn with the help of these maternity benefits without paying an added premium for it.
Health insurance also covers a lot of non-hospital related treatments. These include physiotherapy, dental care, chiropractic care, optical advice, alternative medicine, and nutrition counseling. You can always upgrade your individual plan to a family plan to get the same comprehensive protection for all your loved ones.
2. Group Health Insurance May Not Be Enough
Most employers provide their team of employees with a group health insurance cover. Some may justify not getting individual health insurance as they already have group protection. However, healthcare costs have been steadily rising over the years. Group insurance is always a helpful cover to have, but it is crucial to compare your coverage to current costs of treatment for conditions that may run in your family. The below infographic details the average costs of common lifestyle and age-related illnesses that continue to afflict more Indians each year.
Even when your lifestyle puts you at risk of developing certain illnesses, planning your finances such that you can be prepared for those huge costs is always wise. After retirement, this coverage is usually lost and that is the phase in your life when you need it more than ever. For low premiums, individual health insurance can prevent these huge costs from draining your wallet.
3. Young Buyers Pay Lower Premiums
A fact about health insurance that younger individuals should take advantage of is that the younger you are, the cheaper are your premiums. With age comes higher medical risk, which hikes up the price of premiums if you attempt to buy it at a later age in your life. In addition to the benefit of price, accidents occur without warning. Ensuring you are covered for such unforeseen emergencies is part of essential financial planning, as far as your long term investments go.
Additional Read: How to Save On Life Insurance Premium
4. Incidence of Lifestyle Illnesses Is Growing
From diabetes to heart disease, the incidence of lifestyle illnesses in India continues to grow each year. In fact, as of 2020, CVDs are the biggest cause of fatality in India with one-fourth of all deaths each year being attributed to different CVDs. The number of people CVDs claim the lives of each year is 272 for every 100,000 people, in India, which is significantly higher than the global average of 235. Health insurance can offer the financial cushion necessary to support your hospital expenses in case you or a loved one is afflicted with such illnesses.
5. Reduces Your Annual Tax Liability
From fixed deposits to mutual funds, each investment tool has a different benefit, particularly when it comes to how it is taxed. In the case of health insurance, it can actually help you save the amount of income tax you are liable to pay each year. As per the prevailing tax laws, under Section 80D, health insurance premiums are tax deductible to an amount upto ₹65000 each year. Tax planning with your investments is among the smartest things a young investor can do. Adding health insurance to your portfolio can add a layer of financial protection for you and your family while reducing your income tax liability.
Financial planning is incomplete without considering health insurance for yourself or your loved ones. When it comes to professional financial guidance, Tata Capital’s Wealth Management Solutions are suited to meet your goals. From opting for SIPs in mutual funds to picking the perfect life and health insurance plans, Tata Capital’s Wealth Management Solutions are goal-oriented recommendations such that your current and future financial needs guide your portfolio creation, as they should.