When it comes to financial planning there are various options to choose from. There are a few who believe that investing in land or creating a fixed asset is the best option. Then there are a set of people who put money in buying precious metals and there are who believe in stocks and securities. Lastly, people even balance out between all the above options.

Insurance is also one of the ways to do Health Financial Planning. There are some critical aspects of it- Health insurance planning and Term insurance planning. Let’s understand all of them.

Health Insurance

Health insurance is an insurance product that covers medical and surgical expenses of an insured individual or the family. It reimburses the expenses incurred due to illness or injury or pays the care provider of the insured individual directly.

The point is why do you need it? Medicare cost is increasing year on year. It rises the fastest in comparison to other items like food or clothing.

The problem of bearing the cost is more for someone who doesn’t have a high income or who hasn’t saved it for such exigencies. As the age progresses, the frequencies of paying visits to doctor or hospital increases. Moreover, old age is prone to critical illness- something that requires a lot of money to be parted away.

Hence, health insurance plans provide much-needed support during these times. These days, health insurance plans offer considerable flexibility in terms of disease and ailment coverage.

One should choose the insurance plan that covers as many critical illnesses and surgeries. Also, one should choose to opt for the plan that offers the cashless hospitalization or medication. This largely depends on the premium paid per year. Otherwise, one can choose the fixed payment plan that is regardless of the actual cost borne during hospitalization. The good part of the health insurance policy is that it continues even after the benefit payment on selected illnesses.

Therefore, with health insurance, one is secured both health-wise and money-wise. In most of the families, the earning member takes health insurance policy. The ideal is that one should keep the entire family safe.

Term Insurance

To understand why we need to go for term insurance, let’s know what term insurance is? It is an insurance product, which offers financial coverage to the policyholder for a fixed time period. In other words, if a policyholder dies during the policy term, the nominee of the deceased is paid the sum assured amount. It’s imperative to know the key features of any term insurance policy, before buying it.

For most, term insurance is still something ‘not required’ types. Because most of us tend to believe that we will not get affected by any critical illness. But, one cannot be sure of anything in life. After all, the human body is just a machine only and at any point in time it can become faulty and some serious illness can claim life. God forbid it happens. But it can happen.

Imagine the plight of a family that lost its earning member before she or he could the basic responsibilities like education, the marriage of kids or taking care of the spouse in times to come! In such cases, Term Insurance provides the much-needed support to the family of the policyholder as the family receives the entire sum assured as opted by the policyholder.

Opting for the term insurance at an early age has many benefits. Most importantly, the family is provided with an umbrella to cover them and secondly, the premium is less. Some important key features in term plan can be larger life cover, riders, and enhanced coverage.