Starting a career is an important milestone in everyone’s life. You step into a new phase, get more mature, understand the value of money and become financially independent. To mark this transition you throw a party for your friends, invest in cool gadgets for yourself and buy gifts for your family. How many of you invest in a life or health insurance plan?
Insurance! I don’t need it!!
Isn’t this what many of you feel? What if I say that this sentiment is completely wrong?
Life and health insurance plans are essential when you step into a new phase. These plans help in providing financial security and safeguard your finances. That is why you should invest in insurance when you become financially free. Though both life and health insurance plans are essential which one should take priority? A health insurance plan should. It is relevant for all individuals. Do you know why? Here’s why –
The medical costs are prohibitive
You have just started your career and though you earn, are your earnings sufficient to meet the expensive medical costs? Medical inflation is increasing and is making medicines and treatments very expensive. A hospitalization sets you back by few Lacs. In this case, if you face a medical emergency and require assistance you would have to part with a large amount of money. Your earnings might not be sufficient in paying for your medical expenses and you might face a financial crisis. A health insurance plan helps in these situations. The plan pays your hospitalization costs and other medical expenses. It, therefore, protects your savings from being drained on prohibitive medical costs. Wouldn’t you like that?
Illnesses are on the rise
You must think that you are young and illnesses would not trouble you. Are you right? Given the current lifestyle, illnesses and diseases have become very common among youngsters too. Take for instance the case of dengue. It can affect anyone irrespective of age. Similarly, with the rising levels of pollution, respiratory problems are also common among youngsters. Moreover, you cannot ignore accidents. Being young you tend to have a fondness for speed which results in road accidents. Can your age protect you from such accidents? Illnesses are on the rise and you can be a victim too. If you don’t want to spend Lacs on health care treatments, investing in a health insurance plan should be your ideal choice.
Don’t count health insurance on your employer
If you are employed in a reputed organization your employer might provide you with health insurance coverage. But what if your employer doesn’t? What if you are in a start-up or have a business of your own? You would not get an employer-sponsored group health plan. Therefore, you should invest in one individual plan yourself. You can choose the coverage features you want and, since you are young, the premiums would also be low. So, a health insurance plan is a necessary requirement when you step into a career and should take priority. But, does that mean life insurance is not required? Absolutely not.
A Life Insurance policy comes in handy in case of premature death. If you invest in a Term Insurance plan, it pays a lump sum benefit in case of an unforeseen eventuality during the plan tenure. A life insurance plan is equally important and relevant when you start your career. But Health Insurance takes a priority if at this stage you don’t have any financial dependents, You are young & marriage is not in the pipeline, your parents are independent and you have no liabilities.
The priority of a life insurance policy over health insurance depends on your situation. If you are free from financial responsibilities you don’t need life insurance immediately. If you are not, a Term Plan should take priority over Health Insurance. So, assess your situation and make a wise decision. A health plan is universally relevant. It should, therefore, take precedence over a life insurance plan. If you wonder why you know the reasons.
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