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

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Am you Required to E-file Tax Return?

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   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

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 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. 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 answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
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