In our experience in financial planning, we have discovered that many of our clients and prospects are unaware of the significance of health insurance, it’s term, features, and other aspects. In this health protection blog series, we will attempt to answer frequently asked questions about health insurance and explain why health insurance is a critical aspect of the financial planning process.
What is Health Insurance?
Health Insurance is an insurance policy that provides financial coverage to individuals or groups for medical expenses incurred due to illness, injury, or disability in exchange for an annual premium.
Why is it important to have Health Insurance?
1. To safeguard wealth:
Rising medical expenses may eat up your long term investments. A single serious illness could wipe out all the savings you’ve accrued over the years. We have all recently witnessed a global pandemic in which many were affected by COVID-19 and hospitalized as a result. Those without health insurance or with inadequate health insurance had to sell personal assets like their home or dip into their savings for financial goals. Having adequate health insurance is necessary to achieve your financial goals. Without adequate risk management for your health, achieving financial goals is difficult.
2. Increasing healthcare expenditure:
Healthcare costs are constantly rising. According to reports, in 2021, India recorded the highest medical inflation rate of 14% among Asian countries. So, using the current inflation rate, a treatment that costs Rs 200,000 now will costroughly Rs 500,000 in 2030. As a result, it is critical to have a health plan and needs to be evaluated every year.
3. Peace of mind:
You can never predict when a tragedy strikes. Because of this, many of us experience worry and anxiety concerning how we would handle hospital costs and other expenses, if such a situation arises. A comprehensive Health Insurance plan can provide you with peace of mind and help you overcome your tension about hospital bills.
Conclusion
Health Insurance is a critical aspect of financial planning that should not be ignored. It can provide you with peace of mind and financial protection.