It is common to see people regretting not being financially covered when health problems strike. Quality healthcare comes at a steep price, so any major health expenses can create a havoc on your budget. For example- the value of targeted drugs used in cancer treatment can rise up to 20 lakhs.
These expenses are usually unplanned, which is why incurring a sudden expenditure of this scale can add plenty of financial pressure. You may also have a health insurance cover from your employer but these covers are limited to a certain extent as they will cover you only as long as you work for the company.
Getting a health insurance plan can help you avoid such difficulties. Health insurance is an insurance policy that covers the medical and surgical expenses of the policy holder or the “insured” individual.
When should you buy Health insurance?
Simply put- the sooner, the better. As you grow older, your chances of contracting diseases go higher, which increases the premium that you would be asked to pay. Also, if you already have a medical condition when you look to buy health insurance, a multitude of things can happen: your request for a policy may get rejected, you may have to pay extra premium, and your insurers may agree to insure you against all events other than those caused by your condition.
Is this the best way to protect you?
Health Insurance is a must for every adult, and should definitely be purchased as soon as possible.
If you get it from your employer already, you can consider Top Up Plans that will essentially cover you for the situations where your employer’s group health insurance policy is falling short. For instance, group health insurance does not work if you are not employed.
You can also buy a health insurance plan for your own self, or with your family as part of a combined family floater plan. In both these situations, these are “indemnity” plans that compensate you for medical costs on the basis of actuals.
If you want to secure yourself against other major diseases such as cancer, diabetes, heart stroke, etc., you may need to explore Critical Illness protection- either through a standalone Critical Illness plan, or as a Critical Illness rider to your Life Insurance plan. These illnesses are usually covered up to a particular severity and frequency of occurrence, and thus their treatment tends to cost a lot.
Health Insurance is an integral part of every individual’s planning for the future, but can get confusing at times. If you still have some doubts, here is Health insurance for dummies: 7 essential questions and answers.
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A pre-existing medical condition should not be a deterrent for buying your family health insurance and securing their financial future. However, proper disclosure and some precautions ensure that in case if any unfortunate event, you have a smooth and hassle free experience.
Though both Individual and Group Health Insurance Plans provide similar coverage, they do differ in various aspects, such as cost and customisation.
It is important to have sufficient health insurance cover in order to meet medical emergencies. It is equally important to understand the provisions of any health insurance product that you may be holding, to avoid unpleasant surprises at the time of making a claim.
Health and critical illness are separate categories and each has its own place in a consumer’s insurance requirement. Here’s a simple guide to knowing how to choose between the two, or decide if you need both.