Skip to main content

Mediclaim - Saves life first, tax later

THE idea of making money can make a man move mountains. If you tell a man to stop smoking for the sake of his lungs, he'll cheekily blow a smoke ring in your face but offer him a rupee for every cigarette he gives up, you'll cure him for life! So, it's no wonder that when well-wishers ask you to take a medical insurance for health reasons you'll smile at them vacantly. But if tell you that it's going to safeguard his/her savings and also take home some extra money through tax exemptions, you'll jump at it.

Whatever your reason - health or wealth, you have no choice but to take it given the greater vulnerability to stress related illnesses and escalating medical costs. And if the fringe benefit tax is going to hit the medical cover from your employer, you definitely need to look at an individual cover.

Why do I need it?

Health care is a serious concern for most people today. Escalating costs accompanied by the scare of new viruses being detected every other day makes us want to run for cover. This is where mediclaim steps in. It is an insurance that takes care of your medical expenses or treatment expenses.

How much mediclaim do I need?

This depends on several factors such as age, health condition, lifestyle, etc. Ideally, you would want to cover costs of the big surgeries and operations. An angioplasty, for instance, can cost anywhere between Rs 50,000 to Rs 1.5 lakh (150,000) depending on the hospital you choose. A heart valve replacement can cost up to Rs 2 lakh (200,000). So, in order to decide the amount of cover, you would have to take a good look at your medical history and check how vulnerable you are to certain patterns of illnesses.

How much does it cost?

For a person up to the age of 35, the premium per annum for a cover of Rs 3 lakh (300,000) would be between Rs 3,200 to Rs 3,800. Now, that may not be such a substantial sum considering that you would get cover for treatment when you were to need it.

What are the benefits of mediclaim?

Medical insurance covers almost everything right from the time you step into the hospital till the time you are discharged. The normal costs that are covered are room and boarding expenses, nursing expenses, fees for the surgeon, anesthetist, medical practitioner and consultant, fees for specialists, charges for anesthesia, blood, oxygen and the operation theatre, charges for surgical appliances, medicines and diagnostic materials and charges for X-rays, dialysis, chemotherapy and so on. Even medicines are covered.

What are the limitations of mediclaim?

The most important exclusions till recently have been pre-existing health conditions. If a person has had a heart attack previously or has been operated upon for some other condition, then cover will not be available for those conditions. There are several other exclusions such as dental surgeries, cosmetic surgeries for aesthetic purpose, HIV related conditions, etc. Further, when you take the policy for the first time, any illness that commences during the first 30 days of inception of the policy is excluded.

What is cashless facility?

Cashless policies eliminate the entire trouble of documentation. In a cashless facility, the insurer will settle your bills directly with the hospital and you will be discharged without paying single paise. However, remember that the insurer will settle your bills only up till the sum assured of your policy. Any expense over and above that limit will have to be borne by you. This is unlike traditional policies wherein you would have to pay the hospital first and then claim reimbursement.

If you've read the above carefully, you'd have realised that health insurance is not for your health at all. It's to safeguard your savings. It's actually there to ensure that your hard earned cash does not flow into hospitals. Maybe if they called it 'wealth insurance' instead of 'health insurance' it would find more takers!

Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...

About CRISIL IPO Grading

CRISIL IPO (Initial Public Offering) Grading is an opinion on the fundamentals of the graded issue that reflects CRISIL's independence and expertise. This opinion is expressed as a relative assessment in relation to other listed equity securities in India. The assessment is based on a grading exercise carried out by industry specialists from CRISIL Research. A CRISIL IPO Grade 5/5 indicates strong fundamentals and a CRISIL IPO Grade 1/5 indicates poor fundamentals. CRISIL IPO Grading reflects its assessment of the graded company's equity fundamentals as distinct from an assessment of debt fundamentals. A CRISIL IPO Grade should not be construed to mean a comment on the price of the graded security nor is it a recommendation to invest or not to invest in the graded security. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comm...

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...

Capital Protection Oriented Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Capital Protection Oriented Funds   Erosion of capital is one of the key concerns for investors wanting to invest in equity mutual funds. To address this concern, asset management companies have launched Capital Protection Oriented Funds (CPOFs). What are CPOFs? CPOFs are generally three to five-year, closed-ended funds where 70-80% of the portfolio is invested in fixed income securities, which mature on or before the scheme's tenure. The investment in fixed income securities grows to 100% at the end of the tenure, providing the investor with capital protection. The remaining portion (20-30%) is used to take exposure to equity, which provides the upside. Exposure to equities is either by directly buying equity stocks (plain vanilla CPOFs) or by b...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now