Skip to main content

Health Insurance Buying Tips

Health insurance is a necessity in today's times as the cost of treatment and medication is skyrocketing and people are also now more prone to lifestyle illnesses than before. However, there is nothing as an ideal sum insured as this depends on various factors such as age, income, family size, the city of residence, preferred hospitals, etc.

Metro cities like Mumbai, Delhi etc. have high treatments costs hence anything less than Rs 15 lakhs for a family of 2 adults and 2 young kids would be insufficient in today's day and age. Also, it is advised to opt for a complete protection plan which includes various value-added benefits like OPD, free health checkups, wellness benefits, health coaching, international treatment for critical illnesses, loyalty rewards irrespective of claims, etc. One should also top up their health insurance portfolio with a critical illness plan since it offers a lumpsum payout, and acts as a second financial buffer

Buy health insurance as early as possible

It is a great decision to buy a personal health cover early in life as consumers can serve their waiting periods when they are still in the best of health and utilise the policy when it's needed. A majority of Indian population believes that health insurance is required only when you feel vulnerable to illnesses. This notion exists due to under-penetration and lack of awareness about the benefits of health insurance. It's often seen many people leave the decision of purchasing a health insurance plan to a later age. They assume that they will stay healthy in the early years, and no medical emergency will strike them. However, nothing in life seems certain, and it is better to be insured under all circumstance. It is wiser to secure yourself throughout your life through all the different stages. The earlier and younger you buy a health insurance, the lower you pay for it. As buying a plan at a young age has many advantages like low premium, tax benefit, lower chances of rejection, wider options, adequate financial planning etc

Check the room rent capping

The most important factor while buying a health insurance plan is to look for room rent capping. The room rent limit should be as high as claim reimbursement would be as per room rent limit. For example: if your room rent limit is Rs 5000 a day and you take a room on rent worth Rs 6000 per day for two days.  Here, the increase in room charges is 20%. Suppose your total hospitalisation bill is approximately Rs 100,000, the deductible of 20% will be applicable and you will have to pay Rs 20,000 out of your own pocket. Therefore, it is always advisable to have no limit on room rent in the plan you decide to buy

The waiting period for Pre- Existing Diseases

Another important factor while choosing a health insurance plan is to carefully understand the waiting period for pre-existing diseases. Generally, insurance companies exclude pre-existing conditions for a certain period. The period may depend from insurance company to insurance company; typically it is between 2-4 years. One should buy a policy which has reduced waiting period.

Restoration benefit

Restoration benefit basically restores or recharge original sum insured. It is important to buy a policy which has inbuilt restore option and automatically recharge your sum insured in case, more than one hospitalization in the same year. However, this is only applicable for unrelated illnesses. It is an important feature especially in the case of a family floater plan

Timely increase your cover

It is equally important to keep increasing the cover on a regular basis so that it is in line with the rising medical expenses. "Medical inflation is estimated at 12-14% and health insurance coverage also needs to keep pace with this. To address this growing concern, health insurance companies now-a-days provide guarantees 10% increase in sum insured (without any maximum cap) at the time of renewal, irrespective of claims made in the policy year


SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.
Read more

Mutual Fund Review: SBI Bluechip Fund

Given SBI Bluechip Fund's past performance and shrinking asset base, the fund has neither been able to hold back its investors nor enthuse new ones   LAUNCHED at the peak of the bull-run in January 2006, SBI Bluechip was able to attract many investors given the fact that it hails from the well-known fund house. However, the fund so far has not been able to live up to the expectation of investors. This was quite evident by its shrinking asset under management. The scheme is today left with only a third of its original asset size of Rs 3,000 crore. PERFORMANCE: The fund has plunged in ET Quarterly MF rating as well. From its earlier spot in the silver category in June 2009 quarter, the fund now stands in the last cadre, Lead.    Benchmarked to the BSE 100, the fund has outperformed neither the benchmark nor the major market indices including the Sensex and the Nifty. In its first year, the fund posted 17% return, which appears meager when compared with the 40% gain in the BSE 1...
Read more

Principal Emerging Bluechip

In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins The primary aim of Principal Emerging Bluechip fund is to achieve long term capital appreciation by investing in equity and related instruments of mid and small-cap companies. In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins. This fund defined the mid-cap universe as stocks with the market capitalisation that falls within the range of the Nifty Midcap Index. But, it can pick stocks from outside this index and also into IPOs where the market capitalisation falls into this range. Principal Emerging Bluechip fund's portfolio is well diversified in up to 70 stocks, which has aided in its performance over different market cycles. On analysing its portfolio, the investments are in quality companies that meet its investment criteria with a growth-style approach. Not a very big-sized fund, it has all the necessary traits to invest with...
Read more

Mutual Fund MIPs can give better returns than Post Office MIS

Post Office MIS vs  Mutual Fund MIPs   Post office Monthly Income Scheme has for long been a favourite with investors who want regular monthly income from their investments. They offer risk free 8.5% returns and are especially preferred by conservative investors, like retirees who need regular monthly income from their investments. However, top performing mutual fund monthly income plans (MIPs) have beaten Post Office Monthly Income Scheme (MIS), in terms of annualized returns over the last 5 years, by investing a small part of the corpus in equities which can give higher returns than fixed income investments. The value proposition of the mutual fund aggressive MIPs is that, the interest from debt investment is supplemented by an additional boost to equity returns. Please see the chart below for five year annualized returns from Post office MIS and top performing mutual fund MIPs, monthly d...
Read more
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