Health is wealth. How health insurance can help you save money

The recent pandemic taught us two important lessons. One, health is wealth, and second, the importance of health insurance. At some point, we may have battled a medical emergency that caught us off-guard and drained us physically, emotionally, and financially. Given the rising medical and hospitalization expenses, a medical emergency can cost us our entire life’s savings.

Health insurance can ease our financial burden to an extent. Knowing that our medical bills will be taken care of can lessen some stress in times of turmoil. But there’s more!

Even if you are in the pink of health, health insurance can help in many ways. Here’s how:

Tax Benefits

Health insurance premium helps lower your income tax liability and helps you save tax. The health insurance premium paid for the spouse, parents, and kids is also deductible under Sec 80D of the Income Tax Act.

Financial cover

Most health insurance companies offer a cashless facility. So, in case of an illness, one does not have to go through the hassles of paying anything upfront or arranging for funds. Your out-of-pocket expenses are greatly reduced.

Covers a range of medical costs

You can use your health insurance premium for several illnesses and not just critical illnesses and accidents. For example, health insurance can also cover annual health check-ups, maternity expenses, alternative therapies like physiotherapy and others, psychiatric care, etc.

Cumulative Bonus

When you do not claim medical expenses in a policy year, you earn a ‘no claim bonus’. The bonus can be used in 2 ways- either a discounted premium in the next policy year or an increased sum insured without additional premium. Both bonus options help save money.

Increases health awareness

Health insurance providers often offer complimentary annual health check-ups. Health check-ups work as an early indicator of health issues that may otherwise go unnoticed. For example, the likelihood of developing cervical cancer can be identified years before the onset of the disease. Likewise, diabetes and associated risks are identified with blood sugar tests. These tests help us take corrective steps and avoid future medical mishaps.

Health is our most important asset and is often neglected. Take good care of your health and get health insurance for you and your family as a financial safeguard against untoward medical costs.

For individual nature of tax implications, investors are requested to consult their tax advisors before investing.

Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sale or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Limited Investment Manager: Axis Asset Management Company Limited (the AMC) Risk Factor: The Sponsor is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.