HEALTH INSURANCE

Let’s talk to any one in our circle , neighbour, relatives or any community, almost somebody is suffering from any health issues in all the families.  Some time these health problems become critical when convert into serious ailment. With rising inflation day by day (Medical inflation nearing 20% ) Medical costs are going beyond control and also these are the expense which occur without budget. Even normal and simple disease / sufferings now a days resulting into thousands of medical costs which shakes almost all the family budget.

Why Medical Insurance :-

Medical inflation is sky rocketing and even simple disease treatments are costing thousands of your hard earned money. By taking Medical or Health Insurance you can protect your hard earned money in case of any eventuality to get liquidated or in case of any Critical illness huge sum goes out of hand and some times situation arise for borrowings also if the treatment cost is huge. By taking Health Insurance you can avail reimbursement of your medical bills or can avail cashless services also from network hospitals.

Tax Benefits :-

Keeping in view the increasing medical costs Govt. of India has increased section 80D Tax exemption limits to 25,000/- (Individual or HUF) and 30,000/- (for Senior Citizens) as per Budget 2015. Payment of Medical insurance need necessarily to be paid in other than cash.  These deductions mentioned are over and above the total limit of Rs.150,000/- under section 80C.

Which Health / Medical Plan :-

Health or Medical plans can be bought in two ways i.e. Individual Health plan or Family Floater. In Individual Health plan users can avail individual health insurance plans in their name and different insurance limits are assigned to users while in Family Floater a total limit of insurance is assigned to whole family.  For more clarification let’s take an example :-

Suppose Mr.Suresh bought individual health plans in the name of himself and his wife Mrs. Sudha for an amount of INR 4 lacs so the separate insurance limits of INR 4 lacs will be assigned both to Mr.Suresh and Mrs.Sudha and in case of any requirement both of them can avail INR 4 lacs and up to total of INR 8 lacs.  In the case of Family Floater is Mr.Suresh bought health plan then the total limit of INR 4 lacs will be assigned to Mr.Suresh and Mrs.Sudha and in case of any requirement maximum amount up to INR 4 lacs will be available to both of them.

Premiums :-

Premiums are generally high in case of individual health plan and low in case of Family Floater. It is generally recommended to buy Individual Health Plan for the people less than and up to the age of 35 and Family Floater in case of age more than 35 years.

 Precautions :-

Take care of Exclusions while purchasing Health insurance. Pre existing disease or ailments are not covered or covered after certain period as per company policies. Declare your pre existing ailments while filling the forms to avoid any later stage issues. Also fully declare smoking, alcoholic or blood pressure or diabetes etc.

Claim Processing :-

Claim processing can be got done in two ways i.e. getting reimbursement from health insurance company after getting treatment and by submitting your discharge bills to company. Company or TPA (Third Party Administrator) will process the admitted claim and will reimburse the claim to you as per maximum sum assured. Another way is to get your claim processed in cashless way i.e. you just have to got your treatment done in any of the network hospital by presenting your cashless card with policy details and the hospital itself will get the claim processed and will treat you cashless and will not charge anything from you. This is the most convenient and recommended way for Health Insurance users.

 Critical Insurance Cover Rider :-

It is always recommended to get critical insurance benefit rider attached to your health insurance plan if you are above 40 years now. Critical Insurance cover pays you a lumpsum reimbursement if you are diagnosed by a critical illness. Primarily critical illness as understood are Cancer, Heart attack, major organ transplant, paralysis , kidney failure. One must got the rider attached to health insurance plan to get lumpsum reimbursement in case of any critical illness diagnosed to avoid any financial implications.

Conclusion :-

Almost all the health insurance companies allow entry to health insurance plans up to the age of around 65 years to it is always recommended to buy health plan at earlier stages of life. Premiums are also low at younger age as compared to 40 – 50 or 60 years. Also it is recommended keeping in  view the increased risk of health hazards in today;s life to buy health plan at early stage before you got struck with any such issues.

Wishing you all the best and healthy life.