Skip to main content

Steps to Buy Health Insurance Plan

Best SIP Funds to Invest Online 


A few months ago, I got a frantic call from a friend who wanted me to "quickly" recommend a good health insurance plan, as she wanted to urgently furnish tax deduction proofs to her employer. She didn't have the time to research and buy insurance, plus she found the products way too complicated. That got me thinking.

How can one quickly buy a health insurance plan on his own? Here's a quick guide for beginners.

There are three ground rules —Don't buy in a hurry; don't buy based on a friend's or agent's recommendation; and lastly, don't buy based on price (health insurance plans can restrict the quality of healthcare through room eligibility and network of hospitals). Let's look at the steps:

Step 1: The right amount

The primary purpose of health insurance is to provide financial support. Over the past few years, inflation in healthcare sector has seen a double-digit growth and increased lifestyle diseases, along with critical illnesses, has made it important to buy a relevant cover. Hospital bills now range from a minimum of Rs50,000 to Rs5 lakh. Factoring even a 5% inflation for 15 years, your family will need a cover of Rs15 lakh in 2033. For most of us in our 30s and 40s, it is necessary to have a cover of at least ₹10 lakh.

Step 2: Five parameters

Room eligibility: Insurers have a cap on room rent and type of room you occupy. If the room category is higher than the prescribed limit, you will be liable to not only pay the difference, but bear proportionate deductions on the entire hospital bill. It is advisable to choose a plan offering at least a single private room or the one that has no limit on room rent.

Co-payments and limits: For some health insurance plans, you have to pay a part of your bill, say 10% to 20% through the co-payment clause. This may also be applicable after reaching old age. Ensure you always check for the co-pay or limitation clause.

Day-care treatments: An ideal policy should cover all day-care treatments and not have a restrictive list.

Network hospitals coverage: Check whether the top hospitals you are likely to visit in case of an unfortunate hospitalisation are covered under the provider network of the insurance company you choose.

Relevant benefits: There are some features that could be relevant completely based on your own personal requirements. For instance, if you are a newly married couple, a maternity cover may be important to you, for a some worldwide hospitalisation coverage may be relevant. Keep your future requirements in mind.

Also, look at these three features:

Restoration benefits: If you are buying a floater plan, restoration benefit can be of great long-term value.

No claim bonus: Insurers reward their customers for having a claim-free year with an increase in their sum assured ranging from 5-50% at the same premium, which is known as the no claim bonus. This can be a useful buffer against healthcare inflation.

Free health check-up: Some insurers provide free health checkups, assessment of medical reports, health coaching and monetary rewards.

Step 3: Disclosures

Disclose complete details of your medical history and all health-related information and conditions without fail, because suppression or misrepresentation of facts can lead to claim rejection in the future. In the last several years, we have seen many well-meaning customers fret too much, over-compare and endlessly wait for their ideal health insurance plan to arrive. Finally, some of these people miss buying completely and end up footing heavy bills. A plan that matches 85-90% of your requirements is better than missing out on it.




SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know 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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
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