What Part Of Your Income To Invest In Health Insurance?

What Part Of Your Income To Invest In Health Insurance?

At the onset of an individual’s professional career, one of the first things to cross their minds is the thought of savings and financial security. Soon after attaining a fixed source of income, financial stability and balance become a top priority for most people. We choose different ways to make the best use of our hard-earned money in building a secure tomorrow. A lot of people choose various forms of investments at this juncture to tackle future expenses or to simply safeguard their long term interests. 

Investment is an asset purchased to generate long term income in return. While most people choose an investment based on their needs and financial standing, there is a wide array of options in the market to choose from. Mostly, people are driven towards investing in mutual funds or the stock market. After parking their money in these investments, people turn towards insurance. However, with the recent COVID waves stirring people’s awareness, investments towards health plans have seen a shift. 

The Need To Save For Health Insurance

Earlier, when people thought about investing a portion of their income, they would choose financial instruments that would pay them back. However, over time, this mindset has changed. With all the travesty harboured by the recent pandemic, people are focusing on health insurance as a means of saving their hard-earned cash during medical emergencies. Therefore, people are now seeing the long-term benefits of having health insurance and are meticulously making an effort to safeguard their families. 

Industry experts believe that the benefits of good health insurance provide far greater results than not investing at all. As investing in health insurance is becoming a priority for people, it is also becoming essential to gauge what part of one’s income to invest in. Experts believe that about 10 per cent of a working professional’s monthly income should go towards their investments. Of course, there is no harm in allowing a greater percentage of your monthly income towards health insurance, but a minimum of 10 per cent is ideal.  

Prioritizing Health Insurance

Once you have a monthly fixed amount dedicated towards your health insurance, you can narrow down on other factors for choosing the best health plan for your family. It must be remembered that the right insurance cover for your family, will not only help you in medical emergencies but will also keep you insured in case of any sudden medical needs. An adequate medical insurance plan usually covers expenses like the ambulance cost, pre-and post-hospitalization charges, etc. Experts believe that a policy inclusive of such benefits will go a long way as it will ultimately make the hospitalization process considerably easier and stress-free.

While beginning to invest towards a prosperous future, experts recommend that starting with a health insurance policy is the safest step to put forward. It is beneficial to have a policy with high sum insured, and an insurer with a wide network of hospitals and hassle-free claims process. For a more holistic coverage, check for Maternity benefits, Pre & Post Hospitalization benefits and no Room Rent Capping.

Hence, if you are at an early age, or just started your career, and are wondering what kind of investment, to begin with, Health Insurance is the way forward. By investing a minimum of 10 per cent of your monthly income towards health insurance, you can safeguard yourself and your family from unforeseen events and accidents.

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