Why your emergency fund needs a health plan?

If you lose your job tomorrow, do you have enough money to get by? This is the question that people often forget to ask while planning their investments. The aim of this question is not to make you anxious or worried, but simply to drive the need for an emergency fund. An emergency fund is a set of investment that is easily liquefiable and can be used in the time of need. Our investments are normally planned based on our goals and tax saving opportunities. However, not all these funds are easy to convert. That is why we need to build a special emergency fund, which acts as an umbrella for those rainy days. Building an emergency fund is a smart investment that makes us ready for the uncertainties that everybody needs. However, there is one important part of an emergency fund that most people neglect – a health plan.

The Need For Health Plan

An emergency fund is supposed to be a liquid asset, however, the most common emergency that most people face is health related. This is the main reason that including a health protection plan in your emergency fund is the way to go. While health is a fairly under-rated concern among the younger generations, it is the single most common emergency that we face. The lack of a health plan can directly affect your emergency funds and savings in general. Let’s take an example of Arjun, Varun and Smita, who have the same income.


Arjun lives a carefree life and has no emergency funds at all. Varun has built an emergency fund, but does not see the need to include a health plan in it. Smita has an emergency fund with a health protection plan with sufficient cover. If the three of them are faced with the same medical emergency, say Pancreatitis, here is how their savings and finances will be affected.

The average cost of treatment for Pancreatitis in India has been taken at Rs 1,00,000. The graph clearly shows how a health plan helped Smita to keep her emergency funds intact. Even though Varun’s emergency fund without a health plan covered this ailment, health care costs can easily outrun your savings or funds.

Health Issues Are On The Rise

The main reason that most people avoid adding a health plan to their emergency fund, is the positive yet naïve attitude that they don’t / won’t have health issues. However, the fact remains that people are becoming more prone to various ailments every day. Whether it is due to the deteriorating quality of our environment or the declining immunity levels, people are becoming more prone to health issues than ever before. According to a recent international study by Elsevier in the Journal of the American College Of Cardiology, heart disease deaths in India have increased by 34% in the past 26 years.
The younger generations in India are at a higher risk for diseases like hypertension, heart-related ailments, cancer, etc. As the median age for people with such ailments reducing drastically in India, people are becoming more prone to a medical emergency. Considering these factors, it is always better to take necessary preventive steps, like opting for a good health protection plan.

Why Health Protection Plan?

Health protection plans offer dual benefits of health insurance as well as term life insurance, which makes it the perfect product to add to your emergency fund. In a time where most people have a corporate medical cover, the health protection plan ensures that you get your personal cover that has your back. The health and protection combo like Click2Protect Health allows you to make unique combinations of health and protection cover options that best suits your needs.

Choosing The Right Plan

The next step in setting up your emergency fund is choosing the right health protection plan. Some key pointers that one needs to remember while making this choice is the options available for the cover. Considering the increasing risk of illnesses in the world, a plan that offers a cover for treatment expenses against major illnesses worldwide, like Click2Protect Health does, is the smart way to go. The multiplier and disability benefits are also key points that one needs to check for while choosing a health plan.

The Click2Protect Health plan has the best offers in all these sectors and much more, making it the perfect choice for your emergency fund. In addition to the lump-sum payout on diagnosis of terminal illness*, and waiver of premiums in the event of accidental total permanent disability or critical illness*, the Click2Protect Health plan also offers tax benefits under section 80C and 80D of the Income Tax Act, 1961. So set the base of your emergency fund with a health protection plan that you can count on.

*- Terms and conditions applied.