The Role of Health Insurance in Financial Planning


In the present times of medical inflation, having a health insurance plan is no less than a boon to secure yourself financially during medical emergencies. Since life is surrounded by uncertainties, health emergencies can occur anytime, leaving you in immense financial stress.

Thus, a health insurance policy can help you deal with such emergencies, empowering you to avoid financial burdens and become the financial support of your family. Keep reading further to know more about the role of health Insurance in your financial planning.

How is Health Insurance Effective in Financial Planning?

Go through the following points to discover how a suitable health Insurance plan can help you manage your finances:

No Financial Burden

Considering life is full of ups and downs, the increasing expenses make it difficult to afford quality medical treatment. Having a health insurance plan can act as your financial shield during medical emergencies, helping you to access medical attention on time, without creating any financial burden on you. With comprehensive coverage, you do not have to worry about your medical bills anymore.

Ready for Medical Emergencies

Medical emergencies do not come knocking at the doors, and thus leave you in a state of stress, anxiety and whatnot. At the time of medical inflation, when most of the stress comes from managing funds, health insurance can be your financial protection during such difficult times. With suitable healthcare coverage, you will find yourself always ready to deal with emergencies.

Covers Your Entire Family

Even though having a health insurance policy is a smart step to secure yourself financially during medical emergencies, opting for a family health insurance plan is smarter than an individual one. If you have a family, you can have them all covered against a single premium every month. Hence it is a more cost-effective way to cover the potential expenses for your entire family.


Teleconsultation is one of the most cost-effective ways to save money while consulting with doctors. Policyholders of health insurance plans can opt for teleconsultation services online. Through this option, you can connect with specialised medical practitioners for free without visiting them physically, and thus it saves your time, energy and cost.

Annual Health Checkup

When you have a health insurance plan, you can also have access to annual health checkups for free based on the terms and conditions of your policy. These yearly health checkups help you ensure that you achieve your health goals on time. It also saves you money that you would have spent on the checkups, following lengthy processes.

Secured Post-Retirement Life

One of the inevitable events of life is retirement, after which you do not have a fixed income to maximise your savings. During such circumstances ensuring your financial security to deal with medical emergencies becomes even more crucial. If you have a health insurance plan with comprehensive coverage, you can have a secured retired life without any stress about your finances.

Ambulance Services

When policyholders opt for comprehensive health insurance plans, they also get financial coverage for ambulance services. You can have the ambulance charges covered whenever you require it to reach a hospital or travel between hospitals. Thus, it enables you to save money without feeling stressed during medical emergencies.

Tax Benefits

As the policyholder of a health insurance plan, you would be eligible to save a substantial amount of money from your total taxable income under Section 80D of the Income Tax Act. Based on the number of members insured and their age you can save up to Rs. 1.5 Lakh. Also, you can get additional tax deductions on your premiums when you add riders to your existing plan.

Daily Cash Benefit

You can even add the daily cash facility to your existing healthcare plan. Through this option, you can receive daily cash, which you can use to buy medicine or related things to the medication of the insured member. Thus, even though it is a rider option, you must note that this facility can lead to higher premiums for you.

Claim-free Years

You are also allowed to earn points whenever you do not claim your health insurance coverage in a year. By accumulating these points you become eligible to earn bonuses that let you save more funds than usual, as per the terms and conditions applied on the policy.

The Bottom Line

Overall, before starting to invest in a health insurance plan, you need to analyse your and your family’s medical requirements to anticipate the potential expenses. Likewise, you can select the type of healthcare coverage you need from your plan and make related decisions cautiously. Based on the recurring medical costs, you can apply for a suitable health insurance plan that would contribute to your financial planning and a balanced life.

To invest your money in affordable health insurance plans, do visit the official website of ACKO today!

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