Skip to main content

Be prepared for rising medical insurance costs

RISING costs of medical services in the country has several impacts on a common man. On one hand additional cost is incurred while getting medical treatments and on the other hand there is an indirect impact in the form of rising premium that is faced by individuals when they take a medical insurance policy.

This will add to the cost for an individual and they need to be prepared for such situations. Here is a look at why individuals need to focus on this area.


Medical insurance: Medical insurance, also known as health insurance, provides protection when the policyholder is hospitalised and provides for medical costs. The insurance policy ensures that the amount for the treatment is provided by the insurance company and the individual needs not pay from his pocket.

This protects the individual from having to bear high medical costs by paying a small amount of premium each year.

This is one of the best ways to take care of the medical expenses or emergencies that can arise at any time, and hence, this has to be one of the routes adopted by an individual during their financial planning process.

A rise in the medical insurance premium will impact both existing as well as new medical insurance policyholders.
Single year policy: One of the features of this medical insurance policy is that it is a one-year policy, so the coverage is available for that period only.

There are some offerings that provide coverage for a period of more than one year, but that is an exception. The time period shows the span of time when the coverage will be available for the policyholder, and hence, an individual should ensure and make necessary arrangements to get the cover extended before the policy period nears its end.


When the policy is renewed there some conditions may be different, which will impact the individual covered under these policies.


Change of premium: The worrying part for an individual is that they regularly need to ensure that the medical insurance policy is renewed. This is just one part of the entire effort, because other factors, too, cause a lot of tension for individuals.

The premium on the policy is not fixed for a large number of years, so when an individual goes for renewal, a higher premium can come into effect.

This would leave the individual with no choice but to pay the required amount of money if they want the insurance to get extended for another year.

Under a life insurance policy the situation is different, as usually there is a level premium so the premium to be paid for all the years is the same for the en tire term of the policy.

Basic features: There are some basic features that an individual will find different when dealing with a medical insurance policy, so this will need more attention.

First, there is no concept of a guaranteed fixed premium, so a change in the premium might be possible.


This need not occur for everyone, but there is a good chance that this will take place over a longer time period.

The other thing is that there has to be regular action to ensure that the required insurance cover is intact and available for the policyholder.

This means planning in advance about the renewal of the policy. For this reason they need to obtain the necessary premium costs from the insurance company for the renewal.

Also, with the sharp rise in medical costs, investors should expect and plan for any rise in the premium for such policies.

 

Popular posts from this blog

Mutual Fund Exit Load Changes

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 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
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