The Covid-19 pandemic outbreak has established the need for buying health insurance more than ever. As per the analysis of the Blue Cross Blue Shield Report, millennial health starts to deteriorate after the age of 27. As per the same report, the ageing process will begin at 24 in the coming years. Eye-opening data like this has made health insurance a compelling need.
1. Lifesaver for your pocket
Nothing is worse than getting your finances disrupted by an abrupt medical condition. Most times, we don’t anticipate excessive hospital bills and end up blowing our savings. Health Insurance helps us get medical treatment without hurting our pocket.
2. Tax exemptions
Still not convinced? Well, the tax benefits that health insurance brings in are bound to persuade you to invest in one. According to Section D of the Income Tax Act 1961, you are entitled to a tax exemption of up to Rs. 25000 from your income. The cherry on top? One can also claim an additional exemption of Rs. 50,000 for parents above 60 years of age.
3. Retirement planning
Another excellent reason to invest in a health cover is stable retirement planning. Most of our retirement spending depends on savings and investments. The cash flow from these assets could be lesser than our employment earnings. Hence, it only makes sense to protect the funds. Health insurance will safeguard the compounding of our investments by not letting medical expenses interfere in the process.
4. Backup to the employer’s cover
It is unwise for millennials to depend on the health insurance just provided by their employers with bare minimum benefits. Once you switch jobs, your health benefits will go down the drain. Buying one’s own health insurance is a safety net that provides ensured and long-term financial security.
5. Hedge against medical inflation
Medical inflation in India soared to 14% in 2022, the highest in Asia. Amidst such expensive rates, medical bills can harm our savings. Health insurance will not only keep the finances unaffected by inflation but will also ensure ease at every step of the medical treatment, from pre-hospitalization to post-hospitalization.
Things to check before you buy health insurance:
- Premium and sum insured
- Room rent limit
- Waiting period
- No-claim bonus
- Exclusions from the protection cover
- Add-ons to the cover
As an old saying goes, ‘Prevention is better than cure’; millennials must take charge of their health and invest in good health insurance. The ease of claim and financial flexibility are reasons too strong to avoid buying the insurance. Besides, the reduced burden of providing for an unforeseen mishap in the future can help you plan your finances better.