Did you ever think of financial benefits of your health insurance policy? We suppose you already have health insurance that provides you with sufficient cover. If not, then you must enhance your coverage because the health care cost is increasing exponentially at a rate of more than 20 percent each year. The same affects the out-of-pocket expenses of people out there, including medical expenses and more. Since a large share of the population of India still does not have health or medical insurance, the increasing cost of medical treatment at the hospitals eats up their hard-earned wealth. What are out-of-pocket expenses? Although buying a health insurance policy reduces the risk of financial problems or difficulties in your life by making available world-class health care resources to cure critical illnesses and other life-threatening diseases, you also need to save money to manage your daily expenses to cater to your life to go on smoothly. This means that you need to manage things in your budget. Meanwhile, your savings can be planned for a better life after retirement, such as for managing medical expenses that increase with age. Focusing on the scenario, the government of India is aiming at bringing a revolution in the healthcare division. How to choose the right medical cover? Health insurance policies bring along a mixed bag of inclusions and exclusions, which refer to both what it covers and what it does not cover. The list of inclusions includes pre and post hospitalization expenses, day care procedures, claim reimbursement etc. In contrast, the list of exclusions includes coverage for any pre-existing disease if not disclosed to the insurer when purchasing the plan. However, the coverage for a pre-existing disease is covered (if only) after a period of time (usually 3 to 5 years). Choose a policy if it covers the following:
When it comes to choosing the best health insurance policy for self or your family members, pick the one that offers you a long-lasting coverage at an affordable premium price. Since your life after retirement will not be in your control or you will be dependent on your successors, ensure that your policy covers your life after retirement in particular. Health plans by Apollo Munich, Max Bupa, and Start Health Insurance are comprehensive and last throughout the life of insured. It is recommended to explore health plans offered by these insurers if you are looking forward to buying one for self or your parents. Choosing a family floater plan is prudent and is always suggested. A health insurance policy that includes critical illness cover is the best option available till date since it covers you if you are diagnosed with a critical illness, viz. heart attack, stroke, kidney failure, major organ transplant etc. Well, if you really are interested in buying a health insurance plan, it is recommended to get one at an early age because the premium increases with the age. In other words, the older you get the costlier the premium gets. Health Cover plus Investment Another type of health insurance policy brings along the benefits of both protection and investment. However, such a plan is usually costlier than a typical vanilla cover available with your insurer. While choosing a special plan brings you special benefits, a part of your premium is invested in the market (usually in equity/debt funds). Those who are more interested in participating in the market find these plans more suitable, as they get add-on benefits. Know more about health cover and health insurance plans – Click Here Insurance Portability The advancement of insurance policies, especially health insurance plans allows you to migrate from your group insurance (provided by your employer) to an individual cover, provided the insurer remains the same. This makes them earn multiple benefits, such as they do not require the participation of their employer in the claim process. Although IRDA has already passed insurance migration or portability, it is yet to be implemented by the insurers in India, based on insured’s demand. Therefore, its benefits are yet to be seen by the countrymen. Tax Benefit Tax benefit is another key feature of health insurance policies in India. It states that the premiums paid by you towards your health insurance policies tax-free under section 80D of Income Tax Act, 1961 of India. Simply put, you can avail tax benefit up to Rs. 20, 000 if you are less than 60 years of age. At the same time, if you pay the premiums for your parents who are senior citizens of above 60 years of age, then get tax exemption up to Rs. 30 years. This means that you can avail a combined benefit of Rs. 55, 000 on the premiums paid for both the policies.
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The trending modern life of everyone makes them more prone to accidents since someone is right behind your car when you are driving on a highway. You never know what happens in the next moment. Suppose the person driving the car right before you suddenly hit the brakes but you failed to do so and rear-ended it. This is where car insurance as well as personal accident insurance comes into play. Although car insurance includes personal accident for the owner-driver, buying a personal accident insurance for self is prudent. The busy streets of any large city in India whether it is Nariman Point in Mumbai or the winding lanes of Chandni Chowk, New Delhi, or Rashbehari Avenue of Kolkata is bound to have multiple opportunities for drivers who have no clue regarding how to drive. While driving on the busy roads of Delhi-NCR, you are likely to hit someone’s car or hit by someone else’s car. On the balance of probability, it is highly likely that you are going to be part of a fender-bender experience in the first few months of purchasing a car. Your car insurance policy, though, covers expenses arising from all such events. However, you must be driving carefully on the jam-packed roads of Gurgaon/Delhi-NCR. Isn’t it all true that we mentioned above?Well, people have different experiences and they pretty well know how to deal with such situations. It’s true indeed that the jam-packed roads of metro cities are not safe to drive when you are new to it. It is always advised to start when you have a valid car insurance and accidental insurance in India. Since you cannot be sure about what is going to happen with you on the roads, you should always keep it on the safe side to avoid any unforeseen events. What is a personal accident insurance policy?A personal accident insurance policy covers you (the policyholder) against the accidental events. This policy safeguards you against the personal accident resulting in total or partial disability. Your insurer is liable to bear all the expenses arising out of the incident. However, in case the insured dies due to a disease or illness, the policy does not cover it. What do we call an accident? As per IRDA guidelines, we define an accident as “an unforeseen event caused by a visible, external means.” Thus, there is no specific definition of a personal accident. However, some personal accident insurance policies read external means as “visible, external and violent means.” Generally, an accidental event causes injuries of some kind where we define an injury as “a physical or bodily harm caused by some violent, external and visible means, which is evidently verified by a doctor.” Any pre-existing medically verifies injuries are not covered by your personal accident insurance policy even the best personal accident insurance in India, which happened by some natural or external means prior to the accident. What is covered: The InclusionsEven though the coverage offered by health insurance plans differs from policy to policy, the following are four major parts of the coverage offered by the accidental insurance policy in India:
While purchasing personal accident insurance for self or your spouse, make sure you read the offer documents carefully. The following scenario depicts the benefit you can avail in the event of a personal accident: Suppose you meet an accident that leads to severe injuries and later turns out in total permanent disability. As the benefits of the policy, you are eligible for getting 100 percent of the sum assured. In contrast, if you get severely injured and it turns out in partial permanent disability, then you are eligible for getting 50 percent of the sum assured. The beginning of a financial year reminds you of one thing, i.e. your tax saving investments for sure. And, the same should not be missed at your end if you are an intelligent investor. Nevertheless, if not then you must consult your tax advisor and plan where to invest to save in taxes this year.
On your way to planning how to save in taxes, you must be exploring various investment schemes available as per your eligibility and affordability. If you have not started already, then you need to act on a serious note and kick begin your investment in some plans that can offer you good returns in the future. At the same time, do not forget to see if the particular investment has tax benefits for you. If it does not offer any tax benefit, you probably not find yourself interested in it. When it comes to saving in taxes with guaranteed benefits, a health insurance policy in India is a great option to pick, especially when you are not very much used to making investments. Health insurance is a long-term investment that provides tax benefits, which can reduce your taxable income by up to Rs. 1, 00,000. In addition to tax benefits, health insurance (also known as mediclaim) policies also provide comprehensive cover against expenses arising from medical emergencies that lead to hospitalization. Best health insurance policies provide coverage for a range critical illnesses, including heart attack, stroke, kidney failure, organ transplantation etc., typically require an extra premium payment. You also get to choose from a wide range of hospitals all over India when needed. If you need to get hospitalized in a medical emergency, your insurance coverage allows you to avail treatment at the hospital of your choice out of the whole large network. You can also plan your hospitalization and inform your insurer in advance in order to process the required formalities prior to the date of hospitalization. How does a Health Insurance policy work? Being the policyholder, health insurance policies entitle you to receive quality healthcare treatment at a hospital of your choice. Once you are insured, you can avail treatment whenever you need by showing the health card issued by the insurer, in case of a medical emergency. While in the case of planned hospitalization, you can pre-inform your insurer about the same. If you need to get hospitalized all of a sudden, you can get the expenses reimbursed later. This requires you to submit a few documents for a smooth verification of your treatment. Once the formalities are done, you most likely get the reimbursement for your claim. Tax Benefits of Health Insurance You might have a thought about tax benefit of health insurance and you preferred to call your tax advisor. Irrespective of what you got to know from your expert, read the following key points to know more about tax benefit of health insurance plans
However, they need to know that they can also claim health insurance benefits for their parent under the same policy. Before investing in a health plan for self, find the best health insurance plan as per your requirements and affordability. If your health policy covers your parents too, they can also avail the same benefits as you do. When it comes to seeking advice and learning from experiences, we always consider our elders whether they are our parents or grandparents. They have seen more of life and are in a position to render wise advice. However, to quote a wise saying, ‘To err is human,’ and it holds true even in the case of our elders. There are certain areas where our elders have erred and instead of blaming them for their mistakes, we should learn from them so that we don’t commit the same ones ourselves. One such mistake is avoiding a health insurance policy or buying one in older ages.
Some twenty or thirty years before, the health insurance sector was not that developed. The General Insurance Corporation of India (GIC) was the sole health insurance company launched in 1986. It offered simple mediclaim policies and awareness of health insurance was low. Perhaps this is the reason why your elders didn’t have a health plan or had it very late in their lives. You should, however, do not fall prey to this mistake and buy a health plan now. If you need reasons, here they are:
Today, chances for you to have health, life, and motor insurance are very high since these insurance policies make you feel safe at home as well as at a far-off place. In fact, having at least these insurance policies is mandatory for each one of us. Well, do you have a personal accident insurance cover? You might not feel that having a personal accident cover is as much important as any other insurance. However, there are times when you realize the importance of personal accident cover. In case you do not feel that an accidental insurance in India is mandatory, you probably are a hurried person who needs to re-think over planning a secure future for self and your family. Benefits of Personal Accident Insurance Take a minute out of your busy schedule and reconsider your security when you are going out on the busy roads of different cities of India. Check if your health or life insurance policy includes coverage for a personal accident. If it does, it requires you pay an additional premium. In contrast, if you buy a standalone accident insurance plan, it is available at a nominal premium price. In fact, buying personal accident cover is mandatory for everyone who is a frequent traveler, not only for self to ensure protection in the event of a personal accident but also for their family members, in case one loses his job or source of income due to permanent accidental disability or death. Talking about India, people in metro cities are frequent travelers, especially those who are on jobs. They travel either through their personal source or take public transport buses, autos, etc. Do you think traveling by auto is safe? You would say traveling through your personal car is also not safe that, however, is right. Thus, if you can actually think so, then you must proactively reconsider looking forward to the best personal accident insurance in India. As an option, you can consider taking a term plan along with personal accident cover. This will not only minimize the overall cost but also offer you a greater coverage. Let us see how: Suppose that you take a term insurance plan for self, which on an average costs you around Rs. 300 on a sum assured of Rs. 1, 00,000. Likewise, if you take a personal accident cover, then it costs you around Rs. 100 to 200 on a sum assured of Rs. 1, 00,000. Therefore, a combination of these can actually save you money in the long-term. At the same time, you have multiple options in terms of insurers, based on the coverage offered. For instance, you can avail coverage for partial to permanent total accidental disability, minor injuries like a fracture, burns, etc., which do not require hospitalization since there are no serious injuries. Read More-: Best Health Insurance Companies in India How much coverage do I need? If there is a need for mentioning when you should buy personal accident cover, you can buy it when you think you are able to drive on the roads. In fact, it is recommended for you, spouse, and children too. According to the thumb rule, the coverage should not be less than 100 times your monthly income. Look for the best accidental insurance policy in India at an affordable premium price. Let us show you why: Suppose you have a fixed monthly income of Rs. 20, 000, then you can avail a sum assured of Rs. 20, 00,000 as per your personal accident cover. In case of your unfortunate demise due to an accident, your family gets the sum assured of Rs. 20, 00,000 and can invest this amount in a fixed deposit. This can get your family around 15 to 16 thousand every month to manage their expenses. However, the sum assured varies from company to company. How much will be the payout? The payout is subject to the policy and sum assured. In other words, based on the type of injury you suffered or whether the particular injury is covered by your policy. For instance, if an accident results in the loss of one eye or one limb or both eyes or two limbs or the death ever, an amount equal to 100 percent of the sum assured is payable. In contrast, only half of the sum assured is payable if the policyholder meets an accident that results in loss of one limb or one of the eyes. Read More-: Accidental death and dismemberment insurance In case an accident results in partial or permanent disability, leading to the loss of income, the amount payable to the policyholder is strictly subject to the terms of the company. The same is mentioned in the policy documents too. Should I go with Standalone or Rider option? If you go with a rider option, then you only get limited coverage in the particular event. In contrast, choosing a standalone policy gets you additional benefits like loss of income benefits and more. Needless to say, the cost of medical treatment is increasing at a rapid rate. At the same time, the increasing need for medical or healthcare treatment at the private hospitals across the country is resulting in rising inflation. Today, one simply cannot afford medical treatment at a private hospital and does not really want to visit a general hospital. People in the corporate sector already have a huge burden on their shoulders, making them less careful about the health of their family members, which eventually leads to hospitalization and financial issues. While if you take a broad look at health insurance, you can save thousands when availing quality medication at a hospital of your choice. Thus, we indeed can say that health insurance in India also must be mandatory in just like car insurance. The following some key reasons why people in India should have health insurance: Good Healthcare Leads to Healthy Lifestyle We live in the modern era wherein new advancements are made by researchers. Their latest inventions in the age of advanced medical science lead to the betterment of medical procedures and healthcare delivery, thereby making medical treatment at various modern hospital chains across the country a lot difficult. In contrast to this, a health insurance policy is a lot better option because it allows you efficiently deal with the increasing medical cost without having to worry about a financial crisis going forward. Thus, health insurance plans power you to avail best medical treatment at a hospital of your choice. Since you have a choice of the hospital amongst the network of hospitals provided by the insurer, you can pick anyone. The government of India has taken multiple steps over the years to provide the countrymen with the best health care at an affordable price at general hospitals all over India. However, people are still unable to get the best out of the massive steps taken by the government. Following are some barriers to availing quality healthcare: Read more: Govt sets out to widen health insurance scheme to 50 crore people The Rural Divide A huge share population of India lives in villages where there are already many more problems in front of the people. Uneven roads, lack of transport and many more hurdles make their lives even more difficult. In such scenarios, when it comes to availing medical treatment, one has to first overcome these hurdles to reach the hospital. Therefore, none of the efficient healthcare facilities is helpful. Premiums beyond Affordability Despite the villagers, not every in India is able enough to afford premium payments if buys a health insurance plan. This is only when you have purchased a policy. However, when you file a claim after being diagnosed with some kind of illness, the premium payment might increase for the next year. Thus, it is evident that paying an increasingly high premium can increase your financial problems at the end of the day. Insufficient Insurance Coverage Buying a health insurance policy for self or any of your loved ones requires you to explore multiple similar policies. Doing this leaves you with multiple options in terms of health insurance policies. Thus, you can choose the best plan to avail maximum coverage at a price that best fits your affordability in the long term. If you do not compare multiple plans and directly choose one, then you may not get sufficient coverage at a premium price that could get you even more with an insurance plan purchased from a different insurer. The Bottom Line Since we feel that the government must make health insurance mandatory for every Indian, then the first step that should be taken is to make the insurance premiums affordable. Also, there should be special schemes available for BPL families and for those simply cannot afford health insurance plans offered by Bajaj Allianz or any other insurance company in India. Irrespective of the insurers, the health plans are to be made affordable by at least the government undertaking insurers. |