Today, you will find millennials investing in a plethora of schemes to expand their wealth. But, the one investment plan that they often overlook is health insurance plans, which they think doesn’t multiply their wealth. But, what they often fail to consider is how this financial instrument can prevent their wealth from eroding.
How will a health insurance plan help you save money?
This is the main reason why people buy a medical policy in the first place. When you have a health insurance plan, you have to pay some or none at all — depending on the policy terms and conditions — for the following:
- Pre and post hospitalization charges
- Doctor’s and nurse’s fees
- Cost of running tests to diagnose your illness
- Cost of therapy, medicines, surgery, prosthetics etc.
- Room rent
Most health insurance policies offer maternity benefits like pre and postnatal care of both the mother and the child, cost of delivering the baby, tests run on the baby to determine if it is healthy etc.
Out Patient Department Charges
Even if you do not need hospitalization and you only need to consult a doctor at the Out Patient Department, your health insurance policy will cover the expenses.
Most people do not go for a health check-up unless the symptoms of an illness compel them to because check-ups are expensive. Health insurance policies make provisions for pre-emptive check-ups. Don’t ignore check-ups as they can detect illnesses at the onset and allow you to begin treatment at the earliest. A head start on the treatment always increases your chances of staging a full recovery and that too within a shorter duration.
Who doesn’t want respite from taxes? With health insurance policies, you are entitled to tax benefits under Section 80D. The sum insured that your insurer pays is not considered as an income. That is why no taxes apply.
Daily Hospital Cash Allowance
This feature takes care of your day-to-day expenses when you are hospitalized.
Organ transplants are immensely expensive and very difficult to afford unless you invest in a health insurance policy, which covers the cost of transplant and aftercare.
Critical Illness Plans
If you invest in these plans, which cover some grave debilitating diseases like stroke, cancer, kidney failure, you can receive a substantial payment if you ever come down with the specified ailments. The insurance payout can actually help you sustain yourself during trying circumstances.
To find out if you are at risk of contracting a critical ailment, you can talk to a doctor through MediBuddy’s E-consult.
Why should Millennials invest in Health Insurance?
Millennials are young and healthy and hence they believe they are immune to ailments. However, if you look closely, you will see that the life of a millennial is one of anxiety, stress, and worry. This, coupled with a sedentary lifestyle and junk food, makes them prone to a number of chronic disorders.
To make matters worse, we live in times when pollution levels have gone up drastically. This rise in pollution levels is one of the major reasons behind the increasing number of severe heart and lung ailments.
Simultaneously, health care services have also become expensive. So, even a brief stint in the hospital can chip away at your savings. Having a health insurance policy in such circumstances will help cushion your finances.
Moreover, if you buy a policy while you are young, you will have to pay a lower premium. This is because according to insurers, young people carry less risk as opposed to older people when it comes to their health.
Then there is the waiting period – the mandatory period you have to wait before the benefits of a policy kick in. Because a person’s health is directly proportional to their age in most cases, a young person can easily get through the waiting period compared to an older person.
Health Insurance policy vs. a Group Insurance Plan
If you are employed in an organization, most likely you will be included in the company’s insurance plan for employees – the group insurance plan. This plan not only caters to your health care needs but also covers your family. This is why many millennials feel that they do not have to invest in a separate health insurance policy if they already have a group insurance policy.
But remember, the benefits apply only as long as you are employed with that firm. If you resign, retire, or are let off, you will have to fall back on an individual health insurance plan.