How to Build a Financial Safety Net with Health Insurance

A financial safety net refers to the full spectrum of financial products that help you to reduce financial risk and act as a buffer to protect you and your dependents from life events adversely affecting your financial security or taking you off track from your long-term financial goals. A comprehensive health insurance plan is one such product that tops the list among others when it comes to planning your financial portfolio. This article speaks about how comprehensive family health insurance coverage helps in creating a safety net by providing much-needed coverage in case of a medical exigency. This will also explain how you can create a safety net on you own. So stay connected!

First thing First: Decide on the Corpus

The corpus of the financial safety net depends on various factors. There is no “one size fits all”. The amount will depend on the lifestyle you maintain, your total monthly costs including loan EMIs and all other expenses, the level of your income, the number of dependants you have and the stage of life they are in, including whether or not they are earning. A rule of thumb dictates provisioning for the expenses of at least 3 to 6 months.

You create the safety net by regularly keeping aside a calculated and pre-decided portion of your income every month.

Remember, discipline is the KEY!

You can start with keeping a fund aside every month by having a clear understanding of your life goals, budgeting for them and being disciplined while both creating and maintaining them.

Why is Comprehensive Health Insurance Needed for Financial Portfolio?

A comprehensive health insurance policy ensures an all-inclusive insurance protection in times of medical emergency. An ideal policy would offer sufficient and higher family health insurance coverage with access to add-on covers. 

is all-inclusive and provides you with extensive health insurance coverage against medical and surgical emergencies for your lifetime. An ideal policy would provide higher family health insurance coverage and have sufficient inclusions, be it in the form of key benefits or add-on riders. With  family health insurance coverage continue on the disciplined building of your financial safety shield. If you are to insure your family, you can consider our Care Supreme health insurance which offers comprehensive sum insured options ranging from Rs 7 Lakh and Rs 1 Crore. Apart from a higher sum insured the policy comes with a vivid range of unique benefits including 7X coverage, unlimited automatic recharge, renewal discounts, no sub-limits on treatment etc. Thus, having a plan with such higher coverage and benefits, you can keep your savings protected. 

How can Comprehensive Health Insurance Coverage Help in Making Financial Safety Net?

With family health insurance coverage you can build a financial safety net by securing the health of your family members along with your savings. Here is how: 

1. Adequate Coverage for Hospitalisation Expenses: Health insurance coverage will take care of the high cost of hospitalisation not only for you but for all insured members. With growing inflation, healthcare costs are also rising. In such a condition, a health insurance policy will ensure that your disciplined savings towards building a financial safety net are not hampered.

2. Cashless Facility: Cashless facility ensures that your safety net corpus does not get hit even temporarily. With this facility, the insurance company settles all incurred expenses directly with the hospital authority up to the admissible limit. 

3. Pre and Post-Hospitalisation: Health insurance coverage ensures that most of your out-of-pocket expenses towards medical tests, doctor’s bills and medicines get reimbursed. For example our Care Supreme plan covers such expenses up to 60 days prior to hospitalisation and 180 days post-hospitalisation.

4. Unlimited Automatic Recharge: The Sum Insured gets automatically recharged if it is exhausted. This is very useful in the case of family health insurance coverage where different members may require hospitalisation or medical care.

5. No Claim Bonus: This bonus is offered as a reward for staying healthy and not claiming the policy. Subject to applicable limits the sum insured increases for the same premium.

6. Discount on Renewal: Health insurance companies offer discounts on renewal for longer periods. These discounts may be up to 10 per cent for renewing for 3 years at one go depending on the insurance company.  For example- Care Health Insurance offers a 5% discount for paying premiums through digital channels.

Pro Tip: Such a Digital discount is available over and above the discount on renewal. Renewing for 3 years and paying digitally will get you an effective discount on the cumulative premium.

7. Air and Road Ambulance: Most comprehensive health insurance coverage includes reimbursement of the charges incurred on air ambulance or road ambulance usage. 

 Note: These are subject to predefined limits.

To Wrap it Up

You will realise from the points above how investing in comprehensive health care insurance is unavoidable if you wish to build a financial safety net for yourself and your family. All unforeseen medical expenses are accounted for by the insurance policy and you continue on your financial goals in a disciplined manner as planned. 

So, what are you waiting for? Opt for Comprehensive family health insurance coverage for your entire family today!

Disclaimers: The above information is for reference purposes only: Policy Assurance and Claims at the underwriter's discretion.