Building a healthy future is about creating a comprehensive plan that safeguards both your physical and financial health. While unexpected medical needs can be a concern, they don't have to be a source of constant worry. At the same time, you must also remember that without a solid financial plan, you may end up depleting your savings.
By implementing a well-rounded health-focused financial strategy, you can face the future with confidence. Staying prepared for a medical emergency involves understanding the role of different health coverage plans to leverage them when needed.
Let’s explore how to build that secure foundation and embrace a future where your health and finances are both well-protected.
Key Takeaways
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Healthcare expenses are rising rapidly, and even a short hospital stay can cost a fortune. Conversely, a well-thought-out plan can help you manage medical costs efficiently while ensuring your family’s financial security. Here are a few benefits of a structured financial plan you must know about:
Timely medical care without financial stress
Protection for your savings and long-term goals
Tax benefits under Section 80D and 10(10D) of the Income Tax Act
Access to quality healthcare without compromises
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While there are a plethora of ways out there to ensure financial preparedness during medical emergencies, certain points must be kept in mind.
Here are six proven methods to confidently handle medical expenses in times of need:
Health insurance is the foundation of any medical expense plan. It covers hospitalisation costs, doctor fees, and critical treatments, reducing the burden on your finances. Here’s a quick roadmap to choosing the right health insurance plan:
Opt for a plan with sufficient coverage to match rising medical costs
Consider cashless treatment for hassle-free
Check the waiting period for pre-existing diseases
Add a critical illness rider for severe health conditions
While health insurance covers hospital expenses, what if a serious illness impacts your earning capacity? This is where a critical illness rider attached to a term insurance plan proves invaluable. A critical illness rider provides a lump sum payout if diagnosed with major conditions like cancer, heart disease, or stroke - ensuring financial stability.
| Feature | Health Insurance | Term Insurance with Critical Illness Rider |
|---|---|---|
Covers hospital expenses | Yes | No |
Lump sum payout for critical illnesses | No | Yes |
Helps with loss of income | No | Yes |
Covers multiple illnesses | Yes, depending on the plan chosen. | Yes |
Tax benefits | Yes | Yes |
Even with insurance, medical costs like deductibles, medications, and post-hospitalisation expenses can add up. A medical emergency fund ensures you don’t have to rely on loans or credit cards during such situations. Moreover, you can opt for market-linked insurance plans such as ULIPs (Unit-linked Insurance Plans) to benefit from a mix of liquid funds and insurance coverage.
The total amount spent by Indian households on health and medical-related services in November 2022 was roughly ₹120 billion.
Planning for medical emergencies requires more than just savings. It needs precise calculations to understand future costs. Canara HSBC Life Insurance financial calculators in India can help you:
Estimate healthcare expenses based on inflation
Determine the right insurance coverage
Plan savings effectively for medical needs
Here are some of the calculators that you may leverage from Canara HSBC Life Insurance official website:
| Calculator | Purpose |
|---|---|
Health Insurance Calculator | Helps determine the right coverage amount for future medical needs. |
Term Insurance Calculator | Assists in choosing the best term plan with a critical illness rider. |
Emergency Fund Calculator | Estimates the savings required for unexpected medical costs. |
If you have dependents, a family floater health insurance plan ensures that every member is covered under a single policy. It is:
More cost-effective than individual policies
Easier to manage with a single premium
Flexible, allowing any family member to utilise the sum insured
The Indian government provides tax benefits to encourage medical financial planning. Key tax deductions under the Income Tax Act 1961 include:
| Expense | Tax Deduction | Applicable Section |
|---|---|---|
Health Insurance Premium | Up to ₹25,000 (₹50,000 for senior citizens) | 80D |
Critical Illness Rider Premium | Included in 80D | 80D |
Lump sum payout from Term Insurance | Tax-Free | 10(10D) |
Medical emergencies are unpredictable, but your finances don’t have to be. By investing in health insurance, a critical illness rider, and an emergency fund, you can ensure financial stability for you and your loved ones.
Start planning today with Canara HSBC Life Insurance tailored solutions. Explore our plans and financial tools to secure your future against medical emergencies.
No. It covers hospitalisation but not income loss due to illness. A critical illness rider ensures financial stability.
Term insurance with a critical illness rider provides a lump sum payout for major illnesses, which can be used for medical costs.
A family floater plan is cost-effective and allows the insured sum to be used by any family member.
Opt for a comprehensive plan with sufficient coverage, cashless hospitalisation, and a low waiting period for pre-existing conditions.
Use online financial calculators to plan healthcare expenses based on inflation.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
