eServe Newsletter August 2013

Why mediclaim insurance is a must

You are expected to live longer than your parents or grandparents.
An average Indian used to live for barely 40 years at the time of Independence. By 2016, an average Indian would live for about 68 or 70 years. However, a longer life need not mean healthier life. Lifestyle-related diseases such as high blood pressure, diabetes, obesity, and extraordinary stress are all on the rise. In short, we are looking at a combination of longer but possibly a less healthy life span. At the same time, healthcare costs have been escalating rapidly. Landing up in hospital is the last thing we want to think about. It happens to someone else not me... you think. But we all go through tough times and only the ones that plan ahead come out unscathed. The massive cost of treatment is a double-whammy for many who already have to contend with the illness. If you become seriously ill, your entire wealth accumulated over decades can disappear in combating the illness.

If your savings can vanish in the blink of the eye, what is the best solution?

The answer to this ominous question is opting for health insurance.

The importance of taking health cover

A health cover can relieve you of the financial burden. In these days of skyrocketing healthcare costs, a medical insurance cover has become indispensable. You get access to quality healthcare by paying just a fraction of the cost as premiums on the policy. Says Ujjaini Dasgupta, Head (Health insurance), Bajaj Allianz Life Insurance, The cover offered by health insurance companies can be typically divided into outpatient and hospitalisation cover, individually or in combination. This simply means different policies will offer you a different depth of cover. Some may give more emphasis to hospitalisation cover and offer extras like hospitalisation allowance. Customers are also looking at taking full advantage of the increased tax limits under Section 80D.

What should you look for in a perfect health insurance cover?

Coverage

What are the different aspects that are covered under the policy should be your first concern. Is a higher pre- and post-hospitalisation cover important or should you opt for a policy that gives you a greater hospitalisation allowance.

Convenience

Opt for policy that has a good network of cashless hospitalisation in your city. The number of hospitals under the cashless settlement may mean nothing if there is not one near your residence

Premiums

Health cover pricing has become deregulated and the customer can now enjoy a competitive pricing. So, one can choose a policy that gives you the most at the lowest premiums.

Maximum age for taking cover

The maximum age up to which a policy will be renewed is crucial at the later stages. You must take health insurance as early as possible to enjoy continuous cover and better premiums.

Exclusions

Pre-existing diseases are the most important exclusions. They are those medical conditions, which are in existence at the time of purchasing a health insurance plan (underwriting). Pre-existing diseases pose a higher risk in actuarial terms and are usually excluded from the purview of both immediate and long term insurance coverage. Over the years however actuarial studies have come to rate diseases such as hypertension, diabetes etc; they are no more considered "pre-existing" and therefore covered and payable. Most other exclusions are uniform over companies.

The ideal age for health cover

Golden rule for buying a health plan is - as early as possible.
Ujjaini Dasgupta, explains, Health insurance must be planned even before child birth, it is only then that congenital diseases familial, predisposing diseases and environmentally induced diseases can be addressed. This also ensures that in case you get with any major illness, one get best help without worrying about the expenses in today's high-cost medical system. This not only ensures health and intervention from the best medical practitioners but also a great peace of mind where one does not have to worry about expenses or the quality of the treatment. Senior Citizen can also buy Mediclaim from Religare Health Care with many add on Benefits.

When should you claim?

There are a host of benefits for having a claim-free policy, the most important being additional cover at the same premium, but the whole purpose of health insurance is to provide for your medical expenses. However, you must make your claims prudently. So, you should not make small claims. To choose which claims are worth making, get the numbers right If it does, it makes sense not to make a claim but pay for the expenses yourself? Claim only if the amount is on the higher side and you it makes sense to forfeit the no claim bonus. Also keep in mind that in the long term, it will reflect on your records and will the insurer will penalise you with an extra load on your premiums.