OneInsure Blog
Post By Joan
There’s A Whole Lot More To Insurance Than Just Tax Benefits
Comments
health insurance, Life Insurance, tax
January to March is a busy quarter for insurance distributors everywhere. Many people rush over to buy policies solely for the purpose of saving tax. True, you can claim deductions under Section 80C and Section 80D, among others, but there is so much more to insurance than just tax benefits.
The whole purpose of having an insurance cover is to ensure you are financially protected when something unexpected or unfortunate happens. Sure, the element of insurance as a tax-saving tool makes it attractive, but one must remember that the primary reason for availing an insurance cover is protection. When you have an active insurance policy, come what may, you can be rest assured that you don’t have to worry about coming up with the cash to pay your bills.
Protect your family with life insurance
Why do we spend so many hours in the office? What motivates us to work?
Our family is our priority. We work to ensure they are taken care of and provided for. But what if something unexpected happens? What if we’re no longer around to take care of them? We’ve all pictured this scenario at some point or another.
I agree, death is a picky subject and something most of us don’t want to think about, but it’s real and bound to happen. While there’s nothing you can do to escape it, you can at least make sure that you are at peace when it happens. With life insurance, you don’t have to worry about how your family is going to manage their finances. In the event of your demise, your family will be provided a considerable sum from the insurance company. The policy pay-out can be used however your family desires - to repay pending debts, pay off your child’s education expenses etc.
Health insurance is more than just a tax-saving tool
Nobody likes to make compromises when it comes to their health. We buy the best-quality produce, go for early-morning jogs and join yoga classes or the gym, all to ensure we’re in the best of health at all times.
Now, regardless of everything that we do, what if some incident lands us in the hospital? Food poising, appendicitis and injury from a fall are just few of the things I imagine can go wrong despite ensuring one is in the best of health. Hospital bills can easily run anywhere from several thousands to lakhs of rupees for a simple surgery. While most of us are able to afford our hospital bills, it will obviously eat into our savings, leading us to cut back on other areas. Sometimes the hospitalization expenses are so exorbitant that we travel to another city or sometimes a whole other country just to afford the treatment.
This is where a health policy comes to our aid. With a health insurance plan in place, we can get admitted at any network hospital and avail the cashless facility offered by the insurance company. There is no need for carrying cash since the insurance company will pay for it through a third party administrator. During any medical emergency, we can focus all our attention on getting better and don’t have to worry ourselves over the hospital bills.
Conclusion
Insurance has a lot more to offer than just tax benefits. Your primary reason for getting any insurance plan should be to financially secure you and your family in case something unexpected happens. All your costs will be covered without placing any strain on your finances. When it comes to tax deductions, think of it as ‘icing on the cake’. Don’t make it the primary reason for buying an insurance plan.
