Financial planning is something that everyone should be aware of and yet a large number of people just do not! For the members of the Gen Z demographic, good financial planning is an absolute must because the world has changed a lot since you were born! Health Insurance can be a cornerstone to any strong financial plan and here are 10 reasons to back up this ‘claim’:
You never know when a health issue may strike: Health is perhaps the most important thing in life, yet everyone is aware that diseases do not come with a calling card or a timetable. Along with a healthy lifestyle, the only thing you can do is plan for as many possible eventualities as you can. The best health insurance in India is your single most effective way to prepare for anything unwanted with your health situation.
Healthcare is becoming more and more expensive: With prices rising everywhere, the prices for getting quality healthcare have also shown an upward trend. As a Gen Z person, you want to be ready for any financial eventuality and getting health insurance is a good way to do it because it will provide you access to funds which you may otherwise not have.
Insurance can help you learn financial discipline: Health insurance works best when you renew it in time on a year-to-year basis. For a Gen Z person, the best approach is to save some money every month. For example, after you have paid for your first-year health plan, consider the premium amount and divide it by 11. Save the amount you get every month. By the time policy renewal rolls in, you will have equal money as your premium amount and some extra to account for premium changes. What else can be a better way to learn financial discipline?
You are young and can benefit from lower premiums: People who are young are charged much lower premium prices than older people, particularly when older people even enter the health insurance system later! As a ‘GenZ’er, you are young and can get health insurance at a lower cost and also continue the benefits of lower premiums compared to other people as time passes.
If you also have employer-provided insurance, the individual health plan can act as a second line of defense: Many members of Gen Z are working in the formal sector. There are a number of Indian and multinational firms where employees are offered group health insurance plans. The need for payment on this plan can depend upon case-to-case basis, but it is best to have individual health cover which acts as a second line of defense. While you can charge claims on your employer provided policy, you can start accumulating no claims bonus on your personal plan. Moreover, in case something throws your employer-provided health insurance out of the picture, your personal plan is still there when you need it.
Insurance allows you to save tax: As a Gen Z, you are allowed to claim health insurance premium of up to Rs. 25,000 deductions from your income for calculation of income tax due on you! This is laid down in Section 80D of the Income Tax Act and it is a standalone deduction that you can claim over and above the other savings you may be making in the course of saving and tax planning. Plus, if you also take health insurance for your parents, you can also claim income tax deduction on that up to a maximum of Rs. 25,000, that can be up to Rs. 50,000 if your parents come in the senior citizens’ age bracket.
Start early and run through different waiting periods: Every health insurance policy has different kinds of waiting periods built into it. There may be waiting periods for certain medical conditions even if you do not have them. Then there may be certain waiting periods for pre-existing conditions where the insurance policy will only start covering them after a certain number of months and if the policy is renewed in time during the waiting period. As a Gen Z demographic person, you can start early and run though these waiting periods before they start to show up.
Start early and avoid exclusions for pre-existing conditions before they come up: One thing that everyone needs to know about health insurance plans is that they come with exclusion for some pre-existing conditions. This means that if you take insurance while you have some of the problems on the list of exclusions, even the best health insurance in India will not cover it. As a Gen Z, the possibility of you having any of these pre-existing conditions is vanishingly small. If you get your health insurance while you are still at such a young age, you will be covered because the insurance company will not count these as ‘pre-existing conditions’. You will get lifetime protection from this aspect as long as you keep on renewing your policy regularly on time!
Protection while you explore different corners of India: Gen Z is very young and a lot of people in Gen Z have the time, urge and ability to explore different parts of the country. When you have health insurance, you can go to any part of the country with confidence that your health insurance is with you in case something happens. Having the best health insurance in India means that you have access to a very wide network of hospitals that will offer you cashless treatment. You just walk in and show the documentation and treatment can begin in short order!
Start building a financial runway and secure it with a firewall: The most important long-term objective of your financial plan should be to build a financial runway which you can depend upon in case of loss of income. You can only work on this when you build a strong firewall around your savings and investments. Health insurance plans act as one such protective firewall which protects your investments. In case any health crisis occurs, health insurance bears the financial load so that you do not have to dig into your savings and investments and allow them to grow for the long term!
Learning financial planning early on is the best possible approach to getting financial independence as well as leading a confident and stable life. With insurance acting as a friend and protector, the people of Gen Z can be sure of a stable life in an ever-changing world!
Disclaimer – The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales!
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