Securing your finances for the future is an essential part of earning. It lets you aim for a sustainable retirement. However, this is not always a smooth sailing journey. You face roadblocks that disbalance your savings. They come as unexpected expenses like medical emergencies. They crop up when you are least prepared and cost monumentally owing to the inflating economy.
It is challenging to get through them without proper planning. Insurers understand this and offer General Insurance that covers medical expenses. This way, you need not drain your savings when you face healthcare complications. The regular premium paid towards the insurer comes to the rescue. You get compensated for healthcare-related expenses based on your coverage. Here are other ways to optimally use them:
Build a safety net
Age is not a definitive indication of ailments. Given the compromised climate conditions, poor diet, and unhealthy lifestyle, no one is immune to diseases. They crop up anytime and leave no time for arranging funds. In such cases, getting insured is the best way to build a safety net. A Medical Policy covers extensive costs associated with the treatment. They include charges for home visits, hospitalisation, ambulance, day care procedures, etc.
Sort retirement planning
Having a steady income flow provides opportunities to achieve wealth growth. You can use the funds to invest for financial stability. Building a corpus this way is helpful in the future. But sudden medical emergencies may render your plans fatal. You can avoid this with Medical Insurance. It offers you financial support for fulfilling medical expenses. Hence, you can sort the savings for retirement planning.
Leverage tax benefits
Expenses are not always associated with the Insurance cost. The tax obligations also significantly affect the financial situation. Owing to inflating medical costs, you may end up with higher taxation. Insurers understand this and offer an exemption of up to Rs. 25,000 on Mediclaim premium. Section 80D of the Income Tax Act authorises this. Moreover, this benefit extends to your close family members.
Buy early
Despite age not being a defining factor for illness, young individuals have lower exposure to medical ailments. Also, you have relatively higher income stability at a young age. Hence, buying Healthcare Insurance in your 30s is advisable. The same goes for Loan Insurance, where Insurers repay your outstanding dues in case of your demise or a fatal event. They make up for your lack of earning capacity considering income stability at a young age.
Raise claims cautiously
The advanced use of medical equipment and healthcare experiments has increased costs. Tackling them with limited savings becomes challenging. Hence, the insurers assign a sum insured to meet the prevailing medical expenses. As you raise claims, the settlements lead to a reduction in the assigned amount. It also affects your premium upon renewal. Hence, it is essential to raise claims after careful consideration.
