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

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
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