Health insurance gets short shrift over life insurance, but it is equally important for your financial portfolio, says Nirmala Konjengbam.
When it comes to choosing between a life and a health insurance plan, most people prefer the former. A life insurance plan provides cover in case of death of the insured, passing on the benefits to a nominee. Health insurance, on the other hand, covers hospital and medical treatment bills. But one can say that life and health insurances are two faces of the same coin as both are equally important for a financial portfolio.
The popularity of life insurance has partly to do with the influence financial agents wield. But, without a health policy, many people end up spending their hard-earned savings on paying medical bills. Some even end up selling assets like land, gold and vehicles to meet the expenses. Yet, others take personal loans to tide over health crises. And paying off interest on a loan means a person ends up spending more than the actual medical costs. Therefore, an extra cover for health will not hurt, rather it will be rewarding in terms of good health and happiness.
Health benefits
A health policy means that you can transfer your risks by paying a premium. But, in case of a preexisting illness, or taking a policy at an advanced age, one ends up paying a higher premium.
Healthcare expenses are rising in India, more so in cities where medical treatment costs are high. Anand Roy, Executive Director and Chief Marketing Officer, Star Health and Allied Insurance says, “Premiums in small towns are relatively reasonable since they do not generally attract high cost of hospitalisation. But there are no apparent disadvantages of buying health insurance in small towns or cities.”
Esta historia es de la edición July 2018 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 2018 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Here's How To Claim Tax Refund If You Missed The ITR Deadline
The Income-tax Act, 1961, allows the refund of any excess income tax deducted on your income beyond your actual tax liability.
26 Spiels You Should Not Fall For
We have a list of 26 traps that you should avoid in your journey to creating wealth
Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme (UPS) on August 24, 2024, guaranteeing 50 per cent of the salary as assured pension for central government employees.
Unlocking Financial Freedom with Freedom SIP: A Beginner's Guide
Freedom SIP is the smartest way to finance your retirement because it allows you to ride the compounding rocket to build wealth, even by investing a small monthly sum.
Asset Allocation Strategy to Safeguard Against Market Fluctuations
Invest in different asset classes, such as equities, debt, gold, etc., so that if a particular segment doesn't perform in a given situation, others will come to the rescue.
The Role of Asset Allocation in Investing
A proper mix of asset allocation that aligns with investor's goals is key to the portfolio's long-term performance and reaching milestones.
Why Retirement Planning is Crucial in Life
Retirement planning is the key if you want a financially secure life in your sunset years.
IS SENIOR HOUSING FOR YOU?
Many seniors have taken refuge in senior living facilities in their twilight years as their children have moved abroad. While that may help them ward off boredom, they often come at a huge cost
WITH OR WITHOUT INDEXATION: WHEN DO HOMEOWNERS PAY LESS?
Calculating taxes under both methods-considering inflation and property appreciation-can yield a more precise result
Flexing Its Way Across Market Cycles
Very few funds meet investors' expectations of delivering superior returns across market cycles, and HDFC Flexi Cap Fund is one of them.