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Health InsuranceJanuary 8, 2021

Why should you pay heed to the importance of having adequate health cover?

2020 will always be regarded as a year of a lot of hardships for all of us for various reasons. One of the primary reasons for this is the financial crunch it has caused among investors as most of the financial market has been marred by investment losses and other forms of financial constraints. Let us have a look at it once. The primary lesson that Covid 19 has taught us for 2021 is to realise the importance of having adequate health cover.

Why should you pay heed to the importance of having adequate health cover?

It is only in the wake of Covid 19 that people have become even more aware of the health insurance and have started to take it more seriously. Otherwise, people were quite content with the group insurance covers, which was a security function that people’s jobs used to provide. But Group insurance cover, unfortunately, expires as soon as the person loses his/her job. Hence, purchasing a health insurance policy is crucial, especially in a crisis situation like that of 2020.

  1. To top it all, Covid 19 treatment’s medical expenses in hospitals have been on a surge. The mere 4-5 lakh health insurance package will not be sufficient to cover the expenses. Rs 10-15 lakh package will be an adequate package to cover the entire family’s hospital expenses. This can be read as an essential money lesson emphasising the importance of having adequate health cover for people.
  2. There is no running away from the fact that every person needs life insurance. The spread of Covid 19 has made people more aware of this fact, and it is worrisome that it took a pandemic to make people realise the importance of having adequate health cover. Now people have become more vigilant about these factors as many family breadwinners became a victim of this fatal disease. This had also created a state of anxiety among people which has made people feel that health plans are not a waste of time but an essential utilisation of the present and the future times.
  3. An emergency situation can strike us at any time, so the only precaution in our hands is to maintain a safeguard mechanism against it at all times. As it is, there is not much job security that people have in today’s times, and with the Covid19 outbreak, people have become even more susceptible to uncertainty, such as losing their jobs. Many companies had to shut down their work processes too. In such a situation, people who had borrowed a considerable amount of loans and mortgage, they had to bear the hugest brunt of this situation. However, RBI announced a moratorium in May which was a measure for the comfort of the borrowers. So, keeping this in mind, the biggest lesson that the loan borrowers took for themselves is that they should maintain an emergency fund for them at all times. This is true for all types of situations and people, rich and poor, so whatever your current financial standing might be, it is necessary to maintain expenses for at least 3-4 months.
  4. The next money lesson on the importance of having an adequate health insurance cover is on the grounds of not being overtly affected and going into a state of anxiety with the volatility of the stock market. It was seen that after the plunge of March, many investors left the stock market and did not invest any further. It can be attributed to fear or the fact that it might induce future losses, but if people would have stayed in the financial stock exchange market, then many things would have gone in their favour too like their temporary losses would not have been converted to permanent ones. So this is one factor you must keep in mind while investing in the stock market, which means one should not shy away from the risk factor sometimes and be a little more perseverant.
  5. This is also true that one has to be careful while taking risks in the stock exchange market, so for this, one must reduce the risk by rebalancing the portfolio. It means that the original asset allocation must be looked into as it will help restore the original asset allocation. For example, if the assets move up or down by 25-30 percent or by any other percentage, then it is the time to check and rebalance the assets. This is how an adequate cover can be established.
  6. People’s must keep their desires under check as they should not exceed a limit that is way above the capacity for them to cover. In other words, it can be said that one should focus more on what is required than on what is desirable because desires seem to have no end. Because of Covid 19, so many households became more aware and cautious of their budget. So it is advisable to focus more on the needs than other options of desirability.
  7. The last lesson on the importance of having adequate health cover is not to ascertain the future income and maintain a more realistic picture when the source of their income rests on a very uncertain domain. One should not make any further future financial or any other plans when the source of income is already so uncertain. For example, many of us make plans to buy and sell either property or something else in the future, relying on the future aspect of our incomes. But in reality, nothing of this sort happened as Covid became a plan spoiler for every plan that people had. This becomes an important lesson that life can be so uncertain. So, for some time, the plans depending upon the future incomes must be kept on halt. Many investors had to take a step back from their future plans as their income instead of increasing saw a considerable drop.

COVID-19 or not, having a health insurance policy provides a deeper level of security that every person needs today. This is where Bimakaro.in can help you, as it comprises of the most detailed list of policies to choose from and if you need, human help is also available via our insurance advisors at the touch of a button.

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