Why Health Insurance is important
Medical Insurance policies has become inevitable in every bodies life mainly due to the ever increasing hospitalization expenses and also, people are become ill frequently due to the changes in life style as well as environmental changes. With the ever-increasing medical costs, an unexpected disease or accident leading to hospitalisation is likely to make a serious financial burden for even middle income groups. It is, therefore, essential for one to invest in good health insurance policies to guard against unexpected contingencies. Now a day's it's very difficult for even middle income group people to get treatment from a good hospital due to the cost aspects. Earlier days, people used to buy insurance policies to just save tax. Investing in medical insurance entitles for tax deduction upto Rs. 15,000.00 (limit for senior citizens is Rs. 20,000.00) under section 80D of the Income-Tax Act. Now, many buy health insurance as a protective measure for his family, as everyone in the family is bound to go through unforeseen circumstances and health problems. However, the common man it's very difficult to understand the details and benefits of insurance products and most of the time they confused that on what product package suites them the best.
If you decided to take insurance policies, its better to take at the early ages. This has got many advantages in terms of reduced insurance premium, health checkups etc . Also each policy has got minimum and maximum entry age limits. If you cross certain age limit (Eg. 45 years), the insurance companies insist you to go for comprehensive medical tests and there is likely to reject your application due to a minor illness dictated in the medical test results. Even for a minor illness like this, insurance companies may demand you to pay more premiums. So it is better to go for insurance coverage before 40-45 years of age to avoid these types of problems. It is recommended to take insurance coverage for both self and family members. In case you opt to take insurance coverage for your entire family, you may sometimes get reductions in the insurance premiums also.
Choosing the proper health insurance plan is a huge decision for most families. Today, trying to find the best plan for you or your family is very difficult task. You need to know what options are available to you, what each of those options offers and whether or not you can afford them. Before you go for an insurance coverage, try to understand the entire policy details such as coverage of illness, exclusions (illness not covered under for re-imbursement), minimum period after the insurance cover starts, maximum claim limit, hospitals coverage, medical/related expenses not eligible for re-imbursement, claim settlement process etc. Try to compare the various insurance policies on offer to decide which one best suits your needs.
Let us now discuss the financial aspects. Those of us who are operating under a low financial ceiling need to pay careful attention to where our health care expenses are going. Do you visit the doctor very often? How much of a monthly premium can you afford? Can you meet your deductable in order to get full coverage? If you choose a traditional health care plan, how much more will it cost to go out of to buy the add-on benefits? Is there a limit to the amount you'll have to pay and to the amount paid to you by your insurance company? Are you caring for any dependents? Do you have any pre-existing decease? How comprehensive do you want your plan to be? Do you need dental and vision plans? Do you have a chronic illness that requires monthly treatment?
Please keep it mind that, a good health insurance plan must cover all kinds of medical care. That includes outpatient treatment, doctor visits, hospitalization, prescription drugs, emergency services, mental-health, laboratory and imaging tests, preventive care, maternity care, and rehabilitation services etc. Many medical insurance policies provide add-on benefits either free or at nominal additional cost. It is always worthwhile to check out these benefits since they cover certain expenses, which would not otherwise be covered. Some prominent add-on benefits includes: Hospital cash allowance, Home nursing allowances, ambulance charges re-imbursement, expenses related to physiotherapy, expenses related to companion accommodation etc
It is also recommended that apart from opting in a basic medical policy that covers expenses incurred during hospitalisation, one should look at other policies that provide comprehensive medical coverage. Some of the important products to be considered include: Critical illness policies Hospital cash policies ( eg. SBI Life Insurance), Family Protection Plan (Eg. ICICI Lambard FPP) etc.
Please understand that Insurance Agents are not your financial advisers. Try to understand the difference between a Financial Adviser and an Insurance Agent. Insurance Agent represents for a single Insurance company, he always tries to recommend an Insurance policy for which he will be financially benefited. In case you are not capable enough to choose a right health insurance plan for you and your family, take the help of an experienced Financial Planner who will definitely suggests you a good health insurance plan that suite you and your families health care requirements. In short, purchasing a medical insurance policy is a serious, deliberate and long-term decision. It is imperative for one to opt for a custom-made product to suit their specific individual needs. Expending some time and effort to select policies with the most comprehensive coverage would be a very worthwhile investment that would definitely guarantee piece of mind.
Best Regards
Prakash Nair
www.keralites.net          |
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