Adulting is often hard, especially at the start. With newfound financial resources at your access, it is the time to get smart and start applying that money in the right places. This new phase of your life is characterised by first splurging money on yourself, then buying cool new gadgets and then finally realising that it isn’t the sustainable way to create wealth. That’s when you learn and explore financial planning.
Financial planning involves many different avenues to choose from. However, it also makes it clear to be prepared for pitfalls that might come as a demise or medical emergency in your family. No person is immune to these situations, it is best to take the prudent approach and plan from the very start. Here’s when you discover about insurance forming a crucial part of your financial planning. When it comes to buying one, there is a debate between life insurance vs health insurance.
A life insurance policy provides for financial support to the beneficiaries whereas a health insurance cover provides financial assistance for medical treatments. Thus, life insurance works after you are gone, whereas a health cover works while you are there. Both these insurance covers are essential in your life, but different stages of your life deem different things as important. When you are young and healthy, a health insurance cover is a better bet since the chance of a medical ailment leading to fatal consequence is remote. Thus, health insurance can be a priority at early stages. Here are some reasons why health insurance should be a priority:
The treatment costs are sky-high
When you have just started your career, an unexpected medical emergency can set you back by all possible savings you have ever made. In addition, the soaring medical inflation makes it extremely difficult to save up for such medical emergency. Also, at a young age, the income opportunities are limited thereby leading you into a financial crunch and all of it for medical treatment. Thus, you must opt to buy health insurance plan early in life. Not only does it offer necessary medical coverage, but also avoids financial hiccups in these torrid times.
Increasing health concerns
There are increasing instances of ailments that are seen to grip the young due to their sedentary lifestyles. Moreover, working for home being a standard in the post pandemic world, there is even higher risk due limited physical activities. Thus, a health insurance policy serves as a perfect backup to avoid such snags. Further, the possibility of an accident cannot be completely eliminated when a health insurance policy ensured medical treatment too.
To avoid reliance on employer’s insurance cover
Corporates often provide health insurance coverage under a group insurance policy. But the limitation of this policy is till you are associated with the organisation, your coverage exists. After quitting, there is no coverage and you are exposed to various perils. To avoid such unwarranted situations, it is best to purchase either individual policy, family floater policy, health insurance for senior citizens for your parents, or even a critical illness cover based on the medical history of you and your family.
While these are some benefits of a health cover, do not overlook the importance of a life insurance policy. you must remember to not consider either life or health insurance in isolation but, in fact, both go in tandem. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.