Whenever one starts earning, the first thought that crosses the mind is often about savings. From the time one starts to have a permanent source of income, maintaining the balance between savings and expenses becomes a concern.
Sanchit Malik, Co-Founder, and CEO of Pazcare says, “An investment is an asset, which is done to generate income. It could be ranged according to every individual’s needs and any amount can be invested. It is generally done in mutual funds or the stock market. Investment planning is introduced afterward.”
People nowadays think about investing some portion of their income. However, the only area where a person doesn’t invest properly is their health. “Investing in insurance and health care is often not done on a priority basis because it will not generate any real income, but will be used in emergencies,” says Malik.
Industry experts say the option to invest in health insurance is fairly new to the market because people are still reluctant to invest in the same. Having said that, the benefits of investing in good health insurance are far greater than not investing at all.
Experts believe health insurance should be considered as something towards which some of the major portions of one’s savings or investment should go. According to Malik, around 10 per cent of an employee’s earnings (monthly income) should go towards their investments.
Keep in mind, the right insurance cover, for you and your family, will not only help you in case of any medical emergency but will also insure you for any sudden medical needs as well. Along with that, a good policy should also include expenses like the ambulance cost and pre-and post-hospitalization charges, etc. Experts say these will be appreciated in the long run as they will ultimately make the whole hospitalization process much easier and stress-free.
If you are confused about what kind of insurance to get first, experts say one should start with a health insurance policy. “Starting with health, followed by Personal Accident and Term Life Insurance should be the sequence,” suggests Malik.
Personal Accident comes in really handy at times but fails awareness while the life insurance policy is also important. Having said that, keep in mind that if you are at an early age, just started your career, and have a group health insurance cover from your employer and you do not have any dependencies, you could put opting for life insurance on hold for the time being.