Why are life insurance and health insurance so important these days?
Health insurance are like umbrellas or shelters which will protect you in a crisis. If you are an investor you must be familiar with the term risk management.
Imagine being stuck in the middle of the road when it’s heavily raining and lightning, not able to find shelter Or even a tree for shade. Well, that’s what happens in health emergencies and uncertainties if you haven’t planned for them financially. Preparing for emergencies is the foundation of financial planning and is crucial for your family’s safety.
Health insurance and life insurance are like umbrellas or shelters which will protect you in a crisis. If you are an investor who invests in the financial market then you must be familiar with the term risk management. Well, that’s what health insurance and life insurance do. It makes sure to reduce the risk of financial crisis in health emergencies.
It provides financial assistance for your loved ones in your absence and that’s why it is important to have life insurance and health insurance. In this video, we are going to discuss the significance of insurance and why you need to get life and health insurance.
Importance of life insurance and health insurance.
1. The overall risk in life has increased.
Ever since the pandemic has hit us we have started taking health and finance seriously. People who got the covid experienced a financial crisis because of heavy hospital bills. Those who left the world also had loved ones dependent on them who are now in financial problems.
You cannot guarantee your life expectancy as well as your health expenses. The one decision of not getting life insurance in health insurance can put your family in a crisis. That’s why it is important to build this security foundation for yourself and your family.
2. The inflation rate of medical expenses.
While the normal inflation rate is 7 to 8 percent the healthcare inflation rate is near 15%. The health care facilities, medication hospitalization charges are very expensive. The one health emergency in your family can empty your pockets. If you want to provide your parents and family premium health care service then you need to get health insurance to be able to afford it.
3. Your family depends on you.
If you are the earning person of the family it is your responsibility to get life insurance for yourself. Life insurance is the greatest gift you can give your family. It is important to plan for financial assistance for your family in your absence. That’s why you need to get your life insured. Make sure the cover of this insurance is 15 to 20 times annual income.
4. Financial safety.
As mentioned before, emergency funds and insurance are the foundation of financial planning and good financial health. If you want to create wealth through investment and the power of compounding then you also have to make sure to have enough funds and insurance for emergencies. This will help you to protect your investments and capital and you will still be able to face the crisis. That’s what the significance of insurance holds when it comes to your financial safety.
5. Risk management.
Insurance is what protects your life and your portfolio from financial crises. It overall reduces the risk in your life. It helps you face health emergencies easily and helps your family to survive without the earning member. That’s why insurance plays a significant role in risk management.
6. Tax benefits.
What’s better than protecting yourself and your family and also getting tax benefits on it. Both health insurance and life insurance offer tax benefits of up to 1.5 lakhs.
Pandemic and corona have taught us lots of things and financial planning and security. A lot of people lost their jobs due to pandemics. A lot of people faced severe crises and health emergencies and many lost all their life savings. Hospitals were charging huge amounts of money on hospitalization charges. Medications were very expensive and that’s why a lot of people died due to the lack of treatment.
A lot of breadwinners lost their lives and families were left in crisis. Children and families faced this crisis due to a lack of financial planning in their households. Well-prepared financial planning can save you from all this. Health insurance can provide you with premium healthcare services. Life insurance can protect your family and the pandemic has made people realize it. That’s why health insurance and life insurance have become important these days.
Above were the significance of health and life insurance. Now let’s learn more about things to keep in mind while buying insurance. When it comes to insurance, time is your greatest asset. Make sure to start Life insurance early in life so that you will have to pay less in premium amount. Prefer life and health insurance with the tax benefits as it can offer you tax benefits up to 1.5 lakh. While buying life insurance don’t confuse insurance with investment and only buy simple term Life insurance. Avoid buying u-lip or endowment plans. Do not forget to check the claim settlement ratio and amount settlement ratio.
Buy health insurance with enough coverage for emergencies. If someone in the family has some pre-existing health conditions or there are senior citizens in the family then buy their insurance differently. Getting family insurance with these conditions will charge you a high premium. Get the top-up plans or riders if necessary. Do not forget to check for the facilities like no claim discounts, pre and post-hospitalization charges, daycare facilities, restoration benefits, and more. Avoid buying copayment health insurance as you will have to pay in emergencies.
Buying insurance is a complicated process as there are thousands of insurance companies trying to sell their products. There are multiple clauses terms and conditions included in all insurance plans which makes it more difficult to examine the right plan for yourself. That’s why I check all documents related to insurance carefully.
To sum up, insurance is the need of today. The inflation rates in health care facilities, risk in life expectancy, good financial planning, risk management is what makes insurance significant. There have been a lot of changes in our lives since the pandemic, be it work from home or covid protocols we have evolved in the last two years. And now is the time to include health insurance and life insurance as the basic needs of our lives.
Now, what are you waiting for to get yourself and your family insured health and life?
Originally published at https://www.selfgrowth.com.