Health Insurance: Is it an intelligent investment?

On that particular day as I sat down and scrolled through my mobile phone, I saw some good news of some celebrities having recovered from the deadly disease of Cancer. Of what I read I remember those celebrities having taken the treatment abroad with the best of facilities made available to them. I felt good that they got the chance to live their life again and appreciated how they have emerged stronger in the process of that recovery.

Curious enough I typed the income and net worth of those celebrities and what struck my mind was what if a commoner like me were to be infected with those diseases. How would I finance myself, will I be lucky enough to come out triumph from the disease? Disease and sickness are always an uninvited guest. But when they come, they take away the mental, emotional, and financial stability of the person as well. These deadly diseases are an uncertain risk in an uncertain future. What we can do on our part is to protect ourselves and our loved ones and gear up to face any untoward eventualities in the future through health insurance. After all the old adage cannot be more suitable in today's era, Health is Wealth. Having a healthy body is the greatest blessing mankind can have because if he is healthy, he is capable of facing what life has to offer to him.

Sickness and medical expenses can be expensive and drain holes in our pockets and deplete our wealth and savings if one is unprepared. Health insurance is one such platform that prepares us to face the risk in the future.

Some of the benefits of health insurance are :

• We can pay a fixed amount of premium at a regular interval of time - based on the coverage one is planning to take. If a person is insured, then at the time of his sickness the insurance company will pay for the hospitalization cost and even post hospitalization cost. Thus, saving the savings of the person for other investments rather than for his hospitalization expenses.

• If one plans to go for health insurance at an early age, the premium paid by them is much lesser as compared to a later age. If the coverage amount is Rs.10,0000 the person who is at the age of 25 may have to pay a premium of Rs.10,000 as compared to Rs.25,000 paid by a person who has attained the age of 35.

• Health Insurance can also be called a retirement plan as one can renew the health insurance policy in the future contingent medical emergencies and exercise it in the old age thus saving one from the mental and financial trauma associated with the inflationary medical expenses.

• One need not be sick at the time of getting health insurance but to get the insurance policy the person has to undergo medical tests and only then the insurance contract is made, what better could happen to get a checkup early and still better know one has no sicknesses.

• The other benefit of health insurance is that one can save tax under section 80D of the Income Tax Act, 1961.

Remember that sickness may come irrespective of age and gender at an unexpected time. When we insure ourselves and our loved ones we are insuring ourselves of the risk associated with the future and minimizing the pressure on ourselves and our loved ones.