Why Health & Term Insurance ??
With the escalating expenses of healthcare services & coming new diseases, it has become imperative for individuals to have a contingency plan in place. This is where term insurance and health insurance come into play, providing an emergency financial backup. Term insurance offers monetary assistance to the insured’s family in the event of an unforeseen circumstance, whereas health insurance aids in covering medical expenses incurred by the policyholder in the event of serious ailments or injuries.
Acquiring a life cover through a term insurance policy and a health cover through a health insurance policy can guarantee comprehensive protection for you and your family’s life, health, and finances.
Here are some reasons why term insurance and health insurance are crucial:
Protect you from any unexpected events – By investing in a term insurance policy, you can ensure that your family receives substantial financial assistance in the event of your untimely demise. Additionally, a health insurance plan offers coverage for severe medical conditions like cancer, liver, cardiac, and neurological ailments, as well as protection against accidental death or disability. It is always better to stay prepared for unforeseen circumstances by having these policies in place.
High coverage with affordable premiums –Choosing an adequate life cover can ensure that your family’s needs are met in the event of an unexpected crisis, and paying a small amount annually can save them from a catastrophic situation. Term plans offer fixed and lower premiums as compared to other insurance plans. When selecting a health insurance plan, leading a healthy lifestyle and being younger can help you obtain more affordable premiums.
Tax benefits – Under the Indian Income Tax Act, 1961, the premiums paid for term insurance and health insurance can be deducted from tax. The premiums for term plans fall under Section 80C, while health insurance premiums can be deducted under Section 80D. Moreover, the death benefit received from a term insurance policy is tax-exempt under Section 10(10D).
Save your Emergency funds – By having both term insurance and health insurance, you can ensure complete financial protection for both your life and health, thus securing your hard-earned money. Health insurance can cover unforeseen medical expenses, while a term plan provides financial security to your family in case of your untimely demise. This way, your family doesn’t have to rely on their savings in the event of any unforeseen circumstances.
Rising medical inflation – Due to the advancement of medical facilties and the increasing prevalence of diseases, the cost for treatments are also rising. It’s important to understand that medical costs are not limited to just hospitalization. Costs for doctor consultations, diagnostic tests, ambulance charges, operation theatre fees, medication, room rent, and more are all on the rise. If you’re not prepared, these expenses can put a significant strain on your finances. By paying a relatively affordable health insurance premium each year, you can avoid the burden of medical inflation while still receiving quality treatment, without worrying about the cost.
India’s population is currently 1.4 billion, making it the world’s second-most populous country. With advancements in medical technology, healthcare costs have also increased significantly. However, around 50% of the Indian population still does not have any form of health insurance.
The major reason for the lack of health insurance coverage among Indians is the limited understanding of the importance of having insurance. It is crucial to spread awareness and encourage people to obtain suitable insurance policies to cover their health and life.
