Changing lifestyle patterns have led to lot of people losing discipline in life. Though the availability of healthcare is abundant today but still people in our generation are not so healthy compared to earlier generation. Early infection to malicious diseases at an early age in now a common phenomenon. With this changing paradigm health and lifestyle health insurance is no more a product just for the elderly even your children needs it. With health insurance inflation hovering around 15% in last few years, not having a health insurance is actually very risky. Though health insurance being a financial protection product, people generally ignore the fact that having a health insurance policy for the children of the family is equally important.
The fact which nobody can’t ignore in today’s life is the medical emergency can anybody and anytime irrespective of any age. Though people are an elder age are more prone to health issues naturally but let’s not deny the fact that the younger children are not safeguarded in any sense. In fact medical treatment of children always require special expertise and needs special treatment and care due to variety of reasons. Let’s understand the fact why child health insurance is very important for your child:
While children are always prone to illness and more susceptible diseases arising of a medical emergency at any point of time is a common phenomenon. They are always in the need of specialized care from pediatrics and specific medical care and which involves also extra cost. Higher health care inflation can lead always lead to unknown financial insecurity which calls for the need of an effective health insurance policy for your child so don’t ignore it.
Planning for a newborn is always overloaded with emotions but with rising cost of pregnancy and rise in cost of raising a kid in today’s time make it also an important financial decision which need to be looked into from the strategic point of view considering your current financial status.We all understand the happiness associated when you hear the good news from your doctor,especially when you are expecting a baby.It is actually a new phase in your life but it is also quite financially challenging for people living in urban centres.The cost associated with medicare for both the mother and child is quite unavoidable at this stage and you end up incurring huge expenses.
Going by the basic rules of insurance, a health insurance company should not be covering the situations relating to pregnancy because anyways this is not an unplanned risk but still there are specific plans which are available today which cover pregnancy related expense only when the policyholder opt for an add-on cover for the same.
What is a maternity health insurance?
At any point of time we can’t overlook the cost associated with pregnancy. Looking at the current cost dynamics it may be cost you in the range of Rs.60000 to Rs.2 lakhs. Your regular family health insurance plans generally provide a maternity benefit under an existing policy just as an add-on cover.So completely depending on family health plan can be disastrous for pregnancy related cost.There are few things that can be looked into which defines the basic feature of a plan
a) Your Maternity plans covers all expenses relating to hospitalization and cost related to delivery of the baby either through normal or caesarean mode.
b) Covers all pre and post hospitalization expenses and also cost related to pre and post natal care.
c) Generally cover the newborn but with certain sublimits.
d) In most of the cases the cost of ambulance which is used for ferrying the mother to the nearest network hospital is also covered
Other than the above benefits there are generally certain limitations with maternity health plans which should be well thought over in advance so that you get maximum claim settled.
a) Most regular health plans offering maternity benefit as an add-on always come with waiting periods of 24 to 36 months so if you are planning for a baby in the immediate future then the pregnancy will not be covered.
b) There is always a limit in pregnancy cost that would be covered by your policy.For the most of the plans though it depends on the sum assured of the plan but in a regular scenario not more than Rs.50000 would settled while you make a claim.So you only get just 20% to 30% of your expenses getting covered under the maternity plan.
a) Do just buy health insurance plan because it offers maternity benefits because there is always a limit to what would get covered.Try to evaluate all features before you buy one.
b) Since in most of the case only 20% to 30% of the maternity cost is covered so you should always have financial backup to fund the rest of the expenses.
c) In any case , if your employer is always providing a group insurance plan, while making claims for pregnancy one should consider the same as the first option. Generally corporate group plans have less limitations compared to regular individual and family plans.In this way you also save your NCB discount on the individual plan which can used for other serious needs
This is a common problem with we millennial, your father who is approaching his job retirement and your mother would also turn into senior citizen in next five years and they don’t have health insurance in place. The main reason behind the same is mainly unawareness , five years back the health insurance industry was not so mature and not so many good plans were there as it is today. The other most important reason behind the same is , the baby boomer generation was not so obsessed with the idea of paying for something in which nothing comes in return post completion of the tenure and this phenomenon is quite observed in the term insurance space also,the term insurance reach was very less in the generation in which our parents fall.
But what it leads to? As our parents grow older, they always need our moral and monetary support and which in most common in all Indian middle class households .In which medical cost forms a larger of it. Since your parents are generally not insured under a health insurance plan you end up paying for their medical cost and which can effectively distort your own future financial plan. Though people don’t accept this fact because of the emotional underpinnings but the fact is a fact. So Should You Look At Buying Health Insurance For Your Parents At The Age Of 60?
Though there a whole list of senior citizen plans which are available today which you can even buy at an age above 60 for your parents but they are generally very costly .Since health insurance premiums generally remain fixed for particular age group so buying it for them before they turn 60 acts as an option to save money and make a smart decision.
What factors you should consider while buying health insurance for your parents?
All above listed points may act as good guide for you when planning for health insurance for your parents but you should be always cautious at the time of buying and always into consideration their current health condition. The other benefit associated with this, if you are paying the premium out of your pocket you can always claim for an additional tax exemption of Rs.30000 under section 80D.So the Maximise Tax Benefits On Health Insurance under section 80D, everything gets planned, not only parent’s health because now they don’t need to shed the leftover money from their retirement fund plus it also keep your own financial plan robust.
Getting a health insurance policy for the senior most member of the family is the most toughest thing to do in a state when the health care cost for them is the highest. Senior citizens are generally in a state where they need the highest amount medical care and which is very costly. if they don’t have a health insurance cover in place then that can be very dangerous from the perspective of financial health and accept their retirement benefits a lot.
Lot of people prefer not to buy a senior citizen health insurance primarily because of two basic reasons , one being they are very costly and secondly the hassle of getting multiple medical test done before getting a health insurance application accepted by the insurer is also very tiresome.
One of the most common thing that one needs to keep in mind if you are buying a health policy for their parents who already have attended the age group of 60 or above please don’t include them as member in your regular family health insurance plan.This is because the premium of a family insurance policy largely depend on the age of the senior most member of the group who are part of the plan. Plus there medical requirements for a person at a very old age are very much different when compared to lot of the young members of the family. So you always need separate plan for your parents if they are above the age of sixty and this applies to the person who is the proposer and also fall in the senior citizen category.
Few things which are very important from the perspective of buying a health insurance policy for senior citizens are:
The above mentioned facts may be something you should consider if you are buying senior citizen health insurance policy for yourself or your parents.If you are buying for your parents anyways you can always claim the extra tax exemption of Rs.30000 against Section 80D and which can be used a way to find the real price that you are paying for the health plan
As all know the importance of health insurance in terms of providing financial security against health emergencies.With rising health care cost health insurance has become an important part of one’s insurance portfolio.But with increasing complexity the need for the amount of health insurance cover and type of cover keep on changing on a regular basis.New forms of physical ailments are on the rise, you never know when a particular health problem which was supposed to a minor disorder can turn epidemic.Like in the case of Dengue , two years back it actually took a epidemic stature and affected many northern states in India.This lead to insurance companies launching Dengue related specific health insurance cover.
The changing scenario discussed above may always force you to look for an higher cover from time to time and which in most of the cases may turn very costly.But if this insurance cover balancing act being done in a smart way can lead to higher savings of money. So let look from the perspective of how can we increase the health cover without raising much cost.Traditionally the health plans which policyholders been buying where base plans, the plan which cover every type of medical emergency and help you manage the whole cost involved during the phase of treatment .The premium of all base family health insurance plans depend primarily on three factors, Number of members who are cover,age of the person being covered and the amount of cover one is looking for it.All these plans also have their sub limits on the percentage of the total cost which would be covered for any specific expense relating to a medical treatment.But with changing conditions most of the policyholders are finding the cover in the base policy less that what is require. The prima facie solution for this is to buy a new policy but which tend to be bit costly because by the time you apply for the next policy you might have already grown older and your insurer might think you more risky while giving you cover.
The challenge is now we need an extra cover but don’t know how to do it at a cheaper rate. This is where top-up health insurance plan comes as a great help.The best part of these types of plan is that they are quite cheaper than buying another base plan for more increasing cover. These plans comes with mandatory deductible which makes them quite cheaper.Take the case of Anand, who already has base plan of Rs.5 lakhs but needed an additional cover of Rs.15 lakh to meet his current requirement.In case he opts for a top-up plan and makes a claim of Rs.7 lakh then the claim of 5 lakh is first raise on the base plan and rest can be covered by the top up. So technically there is a concept of Rs.5 lakh as deductible which makes the top plans as an option of increase health cover which is good and cheap.
People at a younger age mostly don’t value the importance of health insurance when they are healthy and hearty. But one should remember investing into health insurance plans at an early age can have good long term benefits. When you are young and healthy then buying health insurance at this age can prove very easy for your pocket too.
Looking from the perspective of how health insurance premiums are calculated, it has lot to do with the age and health of the policyholder .Insurer generally charge low premium for young applicants. But this is not the only reason surely there are a lot of benefits associated with buying a health insurance plan at an early age and to count few are
A) NO PROBLEMS RELATING TO WAITING PERIOD: Waiting period in a health insurance plan is a common phenomenon. Going by the definition of waiting period when somebody buys a health insurance plan, in most of the times the insurer holds a right not to honor your claims in the initial years of the policy for ailments related to surgery, critical diseases and existing health problems. But in case when you are buying the policy at an early age the waiting period doesn’t become a pain for you and you save a lot of money also.
B) YOU CAN GET MORE THAN JUST HOSPITALIZATION COVERAGE: A large number insurers today have started offering innovative solutions other than the basic hospitalization cover. Since coverage for day to day medical expenses, doctor consultation fee and maternity benefits are some of the common coverage which are now part of a regular plan. Buying a health policy at an early age makes more sense for so that easily enjoy the benefits of all these covers by just paying a nominal extra premium.
C) BENEFITS OF BONUS: Insurer always incentivize policyholders by offering discounted premium or increased sum assured in case of claim free years. The maximum amount of benefit which one can think of it is close to 50% to 100% of the sum assured, which is a huge amount of money. When you buy a health plan at an early age your initial claim free years can add lot of benefits to your existing policy which can be used at an older age.
D) AVAILABILITY OF WIDER OPTION: Generally when you are buying health policy at an early age insurer at are also open to offer multiple features to the customers at a much lower premium but which as an option is not available to a older policyholder.
E) LOWER REJECTION RATES: When you apply for a health policy at an age above 30 health insurers are always jittery about accepting the application because of pre-existing ailments and as people at an older age is most prone to health hazards leading to higher rejection rates. This is not the case when you are applying at a much younger age and the insurer would always happy to accept application from younger applicants.
Though a health insurance plan might look like a fancy investment at an early age but the long term benefits are awesome. A young policyholder can always apply for a long tenure policies at the much cheaper cost. So it not just the monetary benefits but there are real benefits for health insurance applicants falling in the early age category.