What should you buy first – health insurance or term life insurance?
Misfortunes such as illness, accidents, injuries and even death, can cause considerable emotional stress and sorrow. Emotional bonding makes us spend beyond our means to treat and bring back the loved ones. Without insurance coverage and high costs of such catastrophes, we have to dig into our savings or even take loans to bear medical care bills. By purchasing insurance, such financial stresses are reduced, and we will be better equipped in case of future emergencies. Our loved ones and we can focus on rebuilding our lives.
Most financial planners will recommend getting both health and term life insurance plans. Life insurance offers financial support and ensures the well-being of your family in case of an unforeseen demise of the main earner. The money the insurance provider pays to your family can be used for meeting expenses such as children’s education or for clearing off debt. Life insurance secures dependent’s life post demise, while health insurance secures your present and preserves your earning capacity.
The increasing price of quality healthcare in India has made health insurance as important as a term life insurance. Buying health insurance offers peace of mind, knowing that you will get financial assistance when dealing with any large medical contingencies. A comprehensive health insurance plan takes care of hospital expenses and costs, as well as handles both pre-and-post hospitalization expenses. Therefore, one should look at both life and health insurance in parallel.
Everyone should consider getting sufficient health insurance early in life as the premium paid is usually lower. For example, in your twenties a plan with Rs 5 lakh coverage would cost around Rs 5000 per annum, while in your thirties you'll have to spend around Rs 6000. By your forties the cost rises to Rs 8000 (*average calculation; amounts vary from insurer and policy). In addition, when you buy a health plan, you have to wait for specified periods for certain surgeries, specific treatments, pre-existing illness coverage, etc. If you purchase a policy early on, you would have comfortably completed the required waiting periods, and be eligible to claim the benefits thereafter. Many health insurance policies also offer a no claim bonus if the customer continues with the same policy every year, and these can add up to a sizable increase in the Sum Insured at the same premium levels.
For help in deciding the best health insurance plans, we invite you to visit our health insurance portal, sana.insure. SANA.Insure is a digital platform that provides expert, simple, and unbiased comparison on various/hundreds of health policies available in India. We simplify complex terms and conditions, product features, and provide transparent information, tailored to your needs.
Wish you a healthy and happy life!