How to establish a Health Fund

Almost always, a health emergency comes without warning. One method to prepare is to maintain a healthy diet, exercise frequently, and visit a physician if you become ill. While this can alleviate physical agony, what about the financial strain associated with treatment and medication costs? Despite the advancements in medical research, top-quality hospitals and specialists still come at a high price. a high price. It might put a dent in your savings and put you in debt. As a result, having the best possible health insurance is a no-brainer in terms of relieving financial strain and improving your general well-being. In addition, you should set up a "health fund" to cover any expenditures not covered by your insurance policy and to be utilised in case of an unexpected medical crisis. Let's have a look at the options. It is necessary to have Health Insurance You may not have to dig into your savings and assets for other financial goals if you have an adequate health insurance policy. In the event of an unanticipated medical emergency, it is the simplest approach to protect yourself and your loved ones. Include it in your long-term financial strategy. Section 80D of the Income Tax Act, 1961 allows you to deduct up to Rs 25,000 (for non-senior citizens) and up to Rs 50,000 (for senior citizens) of the cost of a health insurance policy premium. Make sure your health insurance coverage is up to date with medical inflation at least once a year. Having a little extra money may go a long way. A "Health Fund" is nothing more than the part of your monthly Net Take-Home Pay that is set aside for medical emergencies in the event that your health insurance policy does not cover the full cost of your medical care. Having a sufficient Health Fund is a necessary if you have elderly family members and are responsible for their medical bills. You should have a 'Health Fund', which is 50% more than your current health insurance coverage, in order to meet unexpected medical expenses. A health fund of Rs 5 lakh may be sensible if your current health insurance policy covers Rs 10 lakh. Add 5-10% more if you or anybody in your family has a medical history. It's important to keep in mind that this fund is only for medical emergencies. Set up more finances in the event of other types of crises. Financial discipline is all that is required to steadily develop a Health Fund over time. What are the best places to save your Health Funds? Funds for a Health Fund should be invested in ways that give predictable returns and are conveniently accessible, i.e. in liquid. The following are some possibilities: Savings Account In contrast to leaving your money unattended at home, where it may be at risk of theft or loss, you may earn 3.0-4.0 percent per year in interest by keeping it in a separate savings bank account that isn't utilised for your usual spending. Fixed Deposits Investing in Fixed deposits yields a little greater return. You may set up a recurring deposit to put money into your Health Fund each month, which allows you to invest consistently, routinely, and methodically. It's better to take a loan against a Fixed deposit than to take money out of it early if you have an unexpected need. Debt Mutual Funds Money Market, Liquid, Ultra-Short Duration, and/or Low Duration Funds are all examples of short-term debt mutual funds that you might want to consider putting money in for your health care fund. These funds can be used for short-term investments of one day up to one year. Compared to stock mutual funds, they provide more predictable returns, making them an excellent choice for putting money aside in case of an emergency. Investing in mutual funds carries market risk, including the possibility of losing money if the fund's value drops. No one can predict when they will be in need of a medical emergency. So, get the best health insurance you can afford and begin setting aside money for a "Health Fund" straight now.

How to establish a Health Fund