Why Health Insurance Should Be Your First Step in Personal Finance

Table of Contents

• Introduction

• 1. Health Insurance = Financial Continuity

• 2. Medical Inflation Is Real

• 3. Early Purchase = Lower Premiums + Full Coverage

• 4. Impact of GST Cut on Health Insurance Demand

• 5. Insurance Complements Government Schemes

• Conclusion

• Disclaimer

Introduction

Before you start building wealth through SIPs, mutual funds, or stocks, the first pillar of financial planning should always be health insurance. Most people ignore it, considering it an expense rather than an investment. Yet, medical emergencies can erase years of savings in one go. Health insurance isn’t about returns; it’s about protecting your ability to earn, save, and invest consistently.

1. Health Insurance = Financial Continuity

Health insurance ensures financial stability during medical emergencies. A single hospitalization can cost anywhere between ₹2 lakh to ₹10 lakh in metro cities. Without coverage, this expense can force you to break your fixed deposits or redeem mutual funds prematurely.

Finogent Insight: A well-chosen health plan ensures that your investments continue to grow undisturbed while your policy handles medical bills.

2. Medical Inflation Is Real

Healthcare costs in India rise by 8–10% annually. From diagnostic tests to room rents, everything is becoming expensive. Relying solely on savings or employer coverage is risky — especially post-retirement or job switches.

Tip: Opt for a comprehensive policy with OPD, critical illness, and family floater benefits. Start early to lock in lower premiums and avoid long waiting periods.

3. Early Purchase = Lower Premiums + Full Coverage

Buying health insurance early offers three major advantages:

• Lower Premiums: Young age = lower risk = cheaper coverage.

• Shorter Waiting Periods: Pre-existing diseases get covered sooner.

• Better Options: More plan flexibility and insurer choices.

Delaying coverage often leads to higher premiums and limited benefits later.

4. Impact of GST Cut on Health Insurance Demand

Recent GST adjustments have made health insurance slightly more affordable, leading to a 38% rise in demand for comprehensive plans. Families are now prioritizing health cover as part of their financial checklist.

Finogent View: Tax savings under Section 80D are an added advantage, but the real value is in financial resilience.

5. Insurance Complements Government Schemes

Government schemes like Ayushman Bharat offer limited coverage. For middle- and high-income families, private insurance provides broader benefits — from cashless hospitalization to international care and high claim limits.

A personal health plan is not a luxury; it’s a necessity for protecting your financial goals.

Conclusion

Your first investment should be in your health. Everything else — SIPs, mutual funds, FDs, or real estate — depends on your ability to stay financially steady during emergencies. Health insurance acts as a safety net, ensuring your long-term wealth plan remains intact.

CTA: Build your financial plan on a strong foundation — start with health protection today. Finogent helps you choose the right cover for your needs.

Disclaimer

All figures and views are general in nature. This article is for informational purposes only and not a recommendation. Please consult a financial or insurance advisor before making any decision.