Discussions often revolve around investments in stocks, real estate, or retirement funds when it comes to personal finance. However, one investment that is frequently overlooked but holds immense value is health insurance.
While it may not yield immediate monetary returns like other investments, the Return on Investment (ROI) of health insurance extends far beyond financial gains. Let’s understand why investing in health insurance is crucial and how it can offer significant returns in various aspects of life.
Understanding Health Insurance
Health insurance is like an important security net, which gives you financial security when there are any kind of medical expenses needed for treatment.
When you secure a health insurance policy, the sum insured is a secure plan that often helps in reducing the burden of healthcare finances, on an individual, as it helps in covering the expense, allowing the policyholder to focus on recovery and healthcare.
For healthcare, policies come in various forms, for diverse needs. Family medical insurance covers entire families, providing medical expense benefits to a vast coverage. Senior citizen medical insurance is customised to the specific healthcare needs of older individuals and often covers age-related issues.
Critical illness insurance focuses on providing financial aid in case of severe illnesses like cancer or heart disease. In such medical plans, usually, hospitalisation, surgeries, medication, and diagnostic tests are covered.
5 Reasons Why You Should Consider Health Insurance Investment
Investing in health insurance comes with various benefits that contribute to both financial security and overall well-being. If you have an investment in medical insurance, you can have several benefits, without worrying.
- Comprehensive Family Protection
Family medical insurance provides coverage for all family members under one policy, which makes sure everybody gets high-quality medical treatment and healthcare attention, without any financial burden.
- Coverage Beyond Hospitalisation
Health insurance plans extend to ancillary expenses which often include ambulance fees, room charges, and medical supplies, offering holistic financial support during ned.
- Inclusive Outpatient Coverage
Certain policies include coverage for outpatient visits and diagnostic tests, promoting proactive healthcare management and early detection of potential health issues.
- Affordable Premiums at Younger Ages
Opting for health insurance at a younger age proves advantageous, as premiums tend to be more affordable due to lower health risks, providing long-term financial security. Moreover, a health insurance premium calculator is a useful tool that assists in obtaining quotes for your policy.
- Tax Benefits
Health insurance premiums qualify for tax deductions under Section 80D of the Income Tax Act, offering additional financial relief and incentivising individuals to invest in their health proactively. These deductions range from Rs.25,000 up to Rs.1 lakh, although tax benefits are subject to change in tax laws.
Factors Influencing Health Insurance Premiums
Health insurance ensures that individuals can access necessary medical care without facing exorbitant out-of-pocket expenses, thus promoting both financial security and overall well-being. However, we all are in search of ways to reduce health insurance premiums. So let us look at the factors influencing health insurance premiums:
- Chosen Coverage Amount
The extent of coverage and the sum insured you select directly impact your premium.
- Number of Insured Members
Policies covering more family members typically entail higher premiums, particularly evident in family floater health insurance schemes.
- Age
Younger individuals often enjoy lower premiums considering their lower risk profile compared to older policyholders.
- Body Mass Index (BMI)
A higher BMI, indicating potential health risks, can result in higher premiums.
- Medical History
Pre-existing conditions or genetic diseases also ensure a higher interest rate.
- Tobacco Use
Individuals who smoke or use tobacco products might have higher premiums, considering related health issues.
- Gender
Premiums may differ based on gender, with women sometimes facing higher rates due to statistically higher utilisation.
Strategies to Reduce Health Insurance Premiums
Reducing health insurance premiums requires a strategic approach covering and maintaining a balance between your financial coverage and premiums.
- Start Early: Securing a health insurance policy when you are at an early age is important, as it can lead to lower premiums considering lower risks.
- Occupation Awareness: Understand how your occupation may affect premium costs, especially the factor if it involves a higher rate of risks.
- Healthy Lifestyle Choices: Quitting smoking and adopting healthier habits ensure health benefits, but also make sure you have low insurance premiums, as to give.
- Budget-Conscious Policy Selection: Opt for a policy that strikes a balance between coverage and cost, making sure that it aligns with all your needs, without hampering your budget.
- Regular Review: Keep track and have a regular review of your policy, to make sure that you still align with your needs and circumstances, making adjustments with the optimisation of premiums and insurance coverage.
Conclusion
Investing in health insurance offers a multifaceted ROI that extends far beyond financial gains. By providing comprehensive protection, coverage beyond hospitalisation, and inclusive outpatient benefits, health insurance safeguards both financial security and overall well-being.
Moreover, with providers like Bajaj Allianz’s Health Guard options ranging from Silver to Platinum plans that offer a comprehensive 1 cr health insurance plan, they provide extensive coverage for both individual and family needs.
While various factors influence health insurance premiums, adopting proactive measures and prudent strategies can help individuals reduce costs without compromising on essential coverage. Ultimately, prioritising health insurance investment emerges as a vital component in securing a stable and resilient financial future.
