Boost Health Investment Portfolio With the Right Health Insurance Plan

Everybody has their own unique set of financial objectives. Yours may include funding a child's education, buying a home, starting your own business, minimising your tax costs, enjoying a comfortable retirement, or any combination thereof. Whatever financial goals you pick, creating a comprehensive financial plan will help you reach them in a systematic manner.

By concentrating just on short-term investment plans like FD, RD, etc., you can endanger your long-term financial stability. While these are certainly good for fulfilling specific financial goals, it is also essential to understand that one must align the larger, long-term investments such as medical insurance with tax-saving instruments to maximise returns. 

But how many of us really perceive medical insurance as an important aspect of a personal investment portfolio? Even those who do usually consider only the tax benefits.

This blog will walk you through the tips to build an effective health investment portfolio and how the right health insurance plan can help you boost your financial returns. 

 

How to Build a Strong Health Investment Portfolio?

Building a successful health investment portfolio involves strategic planning and consideration of various factors, which are listed below:

 

Set Clear Health and Financial Goals

Define your health and financial goals. Determine what you want to achieve in terms of your overall well-being.

 

Understand Your Risk Tolerance

Evaluate your risk tolerance when it comes to health investments. Consider your comfort level with potential risks, uncertainties, and fluctuations in the healthcare industry.

 

Research and Diversify

Research different investment options in the health sector. Explore opportunities in pharmaceuticals, biotechnology, medical devices, healthcare services, and other related areas. 

 

Seek Professional Advice

Consider consulting with a financial advisor or healthcare investment specialist who can provide insights and guidance tailored to your needs.

 

Evaluate Investment Vehicles

Explore different investment vehicles available for healthcare investments, such as individual stocks, exchange-traded funds (ETFs), mutual funds, index funds, or private equity funds. 

 

Monitor and Review

Regularly monitor and review your health investment portfolio. Stay informed about industry trends, regulatory changes, and technological advancements that may impact your investments. 

 

Financial Returns of a Health Plan

While healthcare insurance primarily serves as a means of financial protection against medical expenses, it may also provide certain long-term investment benefits. Here are some ways the right health insurance plan can act as a long-term investment tool:

 

Tax Benefits

The tax benefit is available to an individual on medical insurance premiums paid for self, spouse, children and parents. For the healthcare premium paid for self, spouse and children, a deduction can be availed up to ₹25,000 a year when the eldest insured is under 60 years. If any of these members are older than 60, the annual maximum deduction is limited to ₹50,000.

 

Preventive Care

Many health plans offer coverage for preventive healthcare, like check-ups, vaccinations, and screenings. By utilising these preventive care benefits, you can detect and address health issues at an early stage, potentially avoiding more significant and costly medical interventions in the long run. Maintaining good health through regular preventive care can contribute to overall well-being and reduce the need for expensive medical treatments later.

 

Wellness Programs and Discounts

Some plans provide access to wellness programs and services designed to promote healthy living and prevent chronic conditions. These programs may include gym memberships, nutrition counselling, smoking cessation programs, stress management, and more. By participating in these wellness initiatives, you can improve your health, potentially reducing the risk of developing costly chronic diseases in the future.

 

Cumulative Bonus

The cumulative bonus feature means that for every claim-free year, the sum insured increases by a certain percentage without an increase in premiums. Over time, this cumulative bonus can enhance your coverage, providing added financial security against future healthcare expenses.

 

Return of Premium

Under the return of premium feature, if no claim is made during the policy term, you will be eligible to receive a refund of a portion of the premiums paid. While this feature may not be available in all health policies, it can serve as a form of savings or investment if you maintain good health and remain claim-free over an extended period.

 

Wrapping Up

It is always recommended to enrol in the right health insurance plan early in life, preferably before you hit 30, to avail full benefits. People are healthy in their early years and can purchase plans without caps or restrictions on pre-existing conditions. Additionally, one has ample time to complete the waiting period in order to use the plan when necessary. Moreover, you should review your policy every two to three years to account for medical inflation and changes in life events to ensure that the sum insured limit is adequate.

 

Further, it is always recommended to buy a family floater health plan compared to individual health plans. Plans such as Niva Bupa's Heartbeat Family First Plan offer coverage for up to 19 relationships with an individual sum insured for everyone. The Heartbeat Family First Plan also provides a floating sum insured accessible to any family member.

 

In addition, plans like Niva Bupa's GoActive Family Floater, designed for today's new-age audience, ensure overall wellness with additional benefits like OPD Consultations, I-Protect, AdvantAge, Health Coach and more. It looks out for your wealth as well as your health by offering tax advantages under Section 80D of the Income Tax Act. So, wait no more and get insured with Niva Bupa to avail health as well as financial benefits!