Skip to main content

Health Insurance Guide: Part V - Things to Keep in Mind in your Coverage

A health insurance will not only cover all the cost which you might need for future medical emergencies, but it will also help in providing you with a safe and a secure future.

 

It is essential that after you have bought a health insurance plan, you have also kept some money aside for your health linked care and costs. It is a definite step while you are planning for your future. Here are some things to watch out for:

 

Medications, routinely checkups and related expenses have no coverage:

 

At least a day's hospitalization is required in order to claim for a health insurance. If at all one acquires a cost which does not lead to hospitalization (for example, a hairline fracture), one is not liable to claim for any sort of reimbursement. Some of the policies are also not liable to cover Out Patient care and related expense, thus the everyday costs are not covered under a health insurance plan.

 

Inadequate amount of coverage:

 

Mostly, all the insurance companies have a maximum value of Rs. 50,000 on their policies. Thus, one's reimbursement is edged to the prescribed amount. Contemporary medical care in particular for critical illnesses and diseases can be extremely heavy on one's pocket and at times, is not liable to be covered under Rs. 50,000 alone. And hence, one might need to churn out extra bucks from their own pocket in order to meet the lengthy bill amount.

 

Inadequate amount of coverage for senior citizens:

 

Mostly, all the medical insurances are made accessible only up to a definite age limit. Kindly note that for most of the health insurance companies this is only for people who are 65 years of age or under that. Thus, if you happen to be above this age limit, you won't be offered a new policy and on the similar lines, the prevailing policy will not be improved after a certain age. Paradoxically, this is the age when a senior citizen needs the assistance of a health insurance plan the most.

 

Even though, IRDA and the government have advised the insurance companies to implement few special policies for people above 65 years of age, however, it is yet to be executed.

 

Elimination of policy guidelines might turn out to be expensive for you:

 

Various medical insurance policies have various kinds of exclusions. This depicts that they do not recompense the individual who hold the policy for certain kind of critical diseases or medical problems. This means that if the policy holder suffers from any kind of critical disease or illnesses, he would have pay for his medical costs. Expenses on pregnancy and related ailments are not included in individual health insurance policies.

 

Security against loss on money is not provided:

 

A health insurance plan will only cover the costs that one might acquire for the treatment, however it will not protect against any kind of loss of income which might result due to disease or injury. Ideally, it must be harmonized by disability insurance for the total safety of your family.

 

Popular posts from this blog

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...

Gold: It is safe & secure

RETURNS ON GOLD & ITS ETF’s RISE WHILE most of the popular asset classes are going through bad times, the yellow metal shines on. In fact, in the last one year, gold has given a return of more than 25% and currently trades at Rs 14,695 per 10 gm. Even gold exchange traded funds ( ETFs ) have appreciated substantially. Gold Gold Benchmark Exchange Traded Scheme ( BeES ) and Kotak Gold ETF have given more than 25% returns each in the last three months. Even as the equity markets have taken a hit with the Sensex losing around 46% in the last one year and real estate prices also witness a correction, investors’ preference has shifted to safe havens such as gold. On an average, most of the diversified equity mutual funds have fallen and real estate developers are offering discounts. Thus gold remains the safest bet. The appreciation in the gold prices is mainly due to its safe haven status. The key reason for gold to go up is lack of other investment opportunity. There is also a risk in...

Alpha - The relative performance

Alpha, the net performance of a component against the benchmark is an overlooked tool   Absolutely speaking, any bounce back now on markets should be the last for the year. We offcourse can be wrong and prefer to be judged on alpha (relative performance) as relative accountability is fine with us. According to Alpha India, the top outperformers in the weeks ahead should be Reliance Communications, Reliance Infrastructure, SBI, HDFC, ONGC, Larsen, Jaiprakash Associates, Maruti, Bharti and DLF. On the short side (reduce side), we have Ranbaxy, ACC, Sail, Tata Steel, Wipro, Tata Motors, Sun Pharma, TCS, M&M and Infosys.   Performance like everything follows the 80-20 rule, 80 per cent of your gains are going to come from 20 per cent of your portfolio. So why not give it a thought? The importance of alpha If alpha was so important, then why don ' t newspapers and websites publish it? Why alpha gets featured annually but not as intraday or daily event? Why don ' t we c...
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