1. Admitted to a hospital
The major uncertainty in life is getting sick. No one can predict the timeline of getting sick and be prepared for the same. Getting admitted to a hospital is one of the critical times when any person needs financial as well as moral support.
Moral support can be obtained from friends and family members but when it comes to financial support nothing can beat a good health insurance policy. The value of the health insurance policy would be known at the time of admission to the hospital.
Can you name 5 people who can assist you financially when you are in the hospital?? If you can’t even name 2 people who can help you financially then the best thing for you to do is to take a health insurance policy immediately for you and your family.
Accidents in particular road accidents are unforeseen incidents that require hospitalization and there would be very little time for the family of the injured to arrange for funds as the accident might result in the need for surgery.
It is not something that can be postponed till you accumulate funds as the timing of surgery and treatment decides the fate of the injured person.
So if you don’t want to put your family in such a difficult situation, then the best option for you is to take a health insurance policy or get enrolled in a group health insurance policy.
Hospitalization due to an accident is the critical time when you would think of taking a health insurance policy. But it would be very late to take a policy after the need is over. There is a proverb in health insurance that states its importance:- Better now than tomorrow.
3. Family member’s illness
Assume a situation where your family members are admitted to a hospital and you need to arrange for funds immediately for their treatment.
This time would be very critical in your life when you need a health insurance policy. If it comes down to saving the life of your family member or selling an asset, you would most probably choose the latter.
To avoid such situations it is better to have a health insurance policy.
4. Income tax exemption
The other important or critical time in your life would be at the time of filing income tax returns and there is no exemption available for you as you have not invested in anything.
Had you taken a health insurance policy and other investments then you would be eligible for income tax exemption.
5. Govt schemes/ Employee health insurance is not sufficient
There might be certain situations and critical times when the government health schemes and group/employee health insurance are not sufficient. In that critical time, a retail or personal health insurance policy would come handy.
The retail health insurance policy would act as additional coverage in addition to the government health schemes or group health insurance policy.