Why Health Insurance is Vital in Uncertain Times

1. Coverage Against Medical Expenses
2. Tax Benefits
3. Cashless Claim Benefit
4. Effective Financial Planning

World health day is marked on 7th of April every year. The purpose of Health day is to educate people as to the significance of good health and preservation of it. In this volatile world, one should not overestimate the uncertainties that can touch any human being either mentally, physically and financially.

World crises like the Corona virus can shake the forecast of almost everyone. A majority of these individuals are forced to meet their medical bills out of pocket, to the point where they have to mortgage their assets because of a lack of funds. Everybody should have the opportunity to make decisions that do not involve sacrificing any of the key necessities in one’s life, and hence, securing health plays a vital role in this regard.

As shown by the latest data from the WHO, healthcare expenditures are increasing all over the world. In the majority of cases associated with countries, people encounter a severe financial burden covered by their medical care, especially for critical illnesses or emergencies. Take the example in the United States, where the rate of healthcare is increasing by inflation each year, with the average annual premium for the employer-sponsored health insurance plan reaching $7,470 for single coverage and $21,342 for family coverage in 2021.

Ahead of time, plan your finances, and you can even save a little money to invest in a health insurance plan. This will certainly give you a better idea of a secure future. Placing an appropriate cover is a big deal because of rising treatment costs, particularly ICU costs, that you might need in a critical health situation. Health insurance is of great importance during catastrophic occurrences and ensures that you get proper treatment at hospitals.

Let’s talk about some key benefits of health insurance on the occasion of World Health Day:

1. Coverage Against Medical Expenses

Health insurance covers various kinds of medical bills like for hospitalization, having surgery, needing medicine, or having tests done. According to the American Journal of Medicine, people who don’t have health insurance usually don’t get check-ups to prevent problems, and they might put off going to the doctor or not go at all because they’re worried about money.

2. Tax Benefits

Apart from insuring your health, health insurance may also provide you and your employer with health tax benefits. For example, as per Section 80D of the Income Tax Act, the premium paid toward health insurance is exempt from the income tax. It offers them a health tax incentive and reduces their taxable amounts.

Life is unstable, and health crises can occur at any time. With the existence of health insurance, you can remain mentally relaxed, knowing that should unexpected medical bills be incurred, your financial stability is not compromised. Likewise, those who secured health coverage prior to the COVID-19 pandemic could easily pay for testing, treatment, and hospitalization as well.

3. Cashless Claim Benefit

The number of health insurers is numerous, and their majority have a cashless feature in which the policyholder has the option to receive treatment without paying cash at the point of service.

This is of the utmost value, especially if the help is needed urgently and there is no time for raising funds. Hence, you will receive stress-free treatment by the hospitals in which the insurance provider is employed without paying extra money to the hospital. The insurance company processes the claims for the hospital directly.

4. Effective Financial Planning

Setting goals for your life is the big factor that will make you run to achieve them. The basic necessity for people is to secure the financial well-being of their families and loved ones and the rate of investment that will allow them to meet their future needs. Making wise decisions to buy and invest in quality health or critical illness insurance plans is among the initial steps towards financial planning. Being financially prepared and secured comes with ripple effects that enable people to also make decisions on how they acquire and invest their savings over the long term. Moreover, when you use the saved taxes elsewhere, you can invest in things such as children’s education or extracurricular classes or save for small businesses and children’s marriage.

Health insurance serves as a kind of shield that ensures both physical and financial security.It guarantees medical bills coverage, gives tax benefits, serves to protect money, eases with cashless claim process, and aids with financial management. On this World Health Day, let’s all agree on giving our health the importance it deserves and let’s make sure we invest in a health insurance plan that will cover all eventualities.

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