Knowledge Series I - Health Insurance unleashed

In my previous post, i have briefed about the 3 vitals of financial planning.

Today, I wish to bring one of those vitals of financial planning to your notice in detail:

Health Insurance (Medi-claim policy)

Let me detail you about the importance of Health Insurance in our life.

A health Policy (a family floater) is an insurance that covers your entire family for any hospitalization that occurs due to an unforeseen disease or accident.

In the current scenario of the environment and traffic, we are highly prone to accidents and diseases; and any kind of hospitalization wipes out major amount of our savings.

A health policy takes care of these expenses and saves any unforeseen/unplanned medical expense.

Benefits:

a)      Covers hospitalization and all expenses related to that hospitalization.

b)      Little yearly premium.

c)       No-claim benefit at the end of the year.

d)      Cashless facilities at networked hospitals.

e)      Entire family can be covered in single policy.

f))     Least paperwork.

g)      Some Insurers also cover maternity after 2 years.

h)      Tax benefit U/S 80D on the amount of premium paid.

Health Insurance is also available for individuals with a family floater and is known as Individual Health Insurance Plan.

Please find below a quote of a Family Floater for you to analyze the yearly cost for the same.

Age: 31 years

Family size: 2 adults and 1 child

Risk Cover: 5 lac

Plan: Family Floater

Premium range: Rs. 7736 to Rs. 16598

(Premium depends on company to company as different companies offer few different features)

FAQs:

1: Does it cover previous diseases?

Ans: No, Insurance is always for the risk that might occur in future, so previous sufferings or diseases are not covered.

2: Does it cover maternity?

Ans: Some insurers cover maternity but only after completion of 2 years of your continuous policy cover and have paid the premium for the third year.

3: Is there a capping on expense on any disease?

Ans: No, there is no capping on any disease expense.

4: Is it all cashless?

Ans: Yes, it is all cashless in all the networked hospitals. Other than networked hospitals, the bills will be reimbursed on submission of originals.

5: Any tax benefit?

Ans: The premium paid shall be deductible from your income  Under Section 80 D and shall be exempt from income tax as per current Taxation laws.

Please feel free to comment and query. I'd be glad to reply to your queries and happiest to see your comments.