Health Insurance : Why to buy medical insurance or health insurance?

We often blurt out an old but a true adage, Health is Wealth as friendly advice. Without realising its importance ourselves, the phrase becomes our signature response to one and all. But self-realisation occurs only when life strikes you hard. When on an unfortunate day, either you or a loved one ends up on a hospital bed. The family’s pain becomes worse if they are unable to arrange the money demanded by the hospital.
Family members end up taking heavy debt or mortgage property for monetary support. Some resort to redeeming their investments and fixed deposits midway, which could have secured their future expenses for child education, weddings or would have served as retirement funds.

Given our fast paced lifestyles, serious ailments (cardiac arrest, liver failure or lung and kidneys diseases) can affect even the healthiest of us all, irrespective of age. Whether in your ’20s or ’60s, you are at equal risk to fall prey to severe diseases. Thanks to our stressful lives!

How we wish that we never have to face such a reality that bites. Since future is beyond our control, we ought to be prepared for the unforeseen and ensure that our future plans don’t go haywire or our families don’t go through the ordeal. So, are you prepared to bear the cost of unexpected medical packages that run into lakhs?

A medical or health insurance can keep you covered for the rest of your life. You can understand and learn about Medical/Health Insurance through our simple Q & A’s.

1. Q) Why should you get an insurance cover at the earliest? How much does medical/health insurance costs?
2. A) It’s best to get medically insured in the age group between 25-35 years. As the premium costs are low and generally no health check-ups are required by insurance companies at the time of policy initiation. Please refer to the table below* for yearly approximate costs.

*Premium inclusive of taxes as on 30^th June 2016 for age group 25-35years.
Source: Leading general insurer’s website.

If you would want to pay 2 years premium, you get 10% discount on the premium amount. Eg: Instead of Rs.7243/- per year, you can pay Rs.13037/- for 2 years for Rs10lakhs sum insured for an adult.

1. Q) Paying premium each year or every 2 years. What works better?
2. A) If you plan to get married, have a baby, or want to increase your sum insured soon, a yearly premium payment is the best option. As any addition to a policy can be only made at the time of renewal.

Otherwise, opt for 10% discount by paying premium for 2years.

1. Q) Do I need medical insurance; I and my family are protected under company’s group health insurance?
2. A) In case you are insured under a company’s group health insurance, it is still vital to have your personal health insurance. A medical emergency may arise at a time when you have resigned from your job (or get fired) or you are on a sabbatical/between jobs. Nobody knows the future.

Scenario 2– If you retire between the age of 55-65years and decide to have a Medical Insurance cover since the Co. group insurance is not active anymore. It might be too late as:

• Insurance company will ask for a thorough medical check-up and exclude the cover for pre-existing illnesses from the Insurance contract. For example – if you have a heart problem, all heart related issues may be excluded.
• Insurance premiums will be too high.

So buy adequate health insurance cover and keep your family & your life savings safe.

This is our first article in the trilogy series on Health or Medical insurance.
Please visit us again for the next article on types of health insurance products and the best health insurance policies for you.

The third and final article will follow soon to discuss exclusions (temporary and permanent exclusions), add-on riders. Their pros & cons and more such relevant information.

By Kushal Bhateja