Do you need a Mediclaim Policy?
Health care costs are sky rocketing day by day. Therefore the need for having a mediclaim policy for you and your dependents has grown. Suppose you have to undergo some medical treatment or need to be hospitalized for a certain reason, then a mediclaim policy will be of immense help to you in covering your health care expenses. The reason is Mediclaim offers protection in case of unexpected medical and health care emergencies.
Hospitalization expenses in case of illness, disease, or accident will impose a heavy financial burden on individuals and families. This is where the mediclaim policy comes in handy. The mediclaim policy can reimburse the hospitalization expenses or can pay the hospital directly on behalf of you.
A mediclaim policy provides a health cover of a certain amount of money. This amount depends on the amount that the insured person was insured for.
The mediclaim policy can be taken for an individual
or for an entire family. Some insurance companies allow a discount on the premium if the policy is taken for a family.
What if you don’t have a mediclaim policy?
- Risk of your corpus being wiped away
- Mental pressure to arrange a huge sum in case of emergencies
- Not able to afford enough money to pay for huge hospitalization expenses
- Not able to afford quality treatment
- Risk of the debt trap
So these are the consequences you have to face when you don’t have a mediclaim policy and this is why it’s important to have one.
Never delay buying a mediclaim policy
There are many who delay buying the policy, in search of finding the best policy which has all the features in it. They need low premium, high cover, best and fast claim settlement, and all the other benefits. But unfortunately, there is nothing such as a perfect or the best policy, it does not exist.
Health insurance products are highly complex and the features and premiums are fixed according to various parameters. There’s never a possibility of having a policy, with all that you want.
Trying to find the best, you will end up having no policy at all. This is because when you start delaying, you may be denied of the policy in case you cross the age limit, or if you catch any sickness in the later period (it may not be covered). Buying a policy now is better than getting the best one after a few years.
Now let’s check what are the other things to know when you get a mediclaim policy.
Check Diseases covered under Mediclaim Policy
Before taking the mediclaim policy you should know what are all the diseases covered under mediclaim policy. If any pre-existing disease has been found out in the medical test, then those diseases will not be covered under the mediclaim policy for a waiting period of the first few years.
The Waiting period may differ with respect to the company and also with respect to disease. So you should know the diseases covered under mediclaim policy and select the one which suits you.
Insurance companies have fixed some age limits for a medical test. If the individual is below that age, then he or she need not undergo a medical test for taking mediclaim policy. If the individual is above that age limit then he needs to go for the medical test.
Is Employer Provided Mediclaim Policy sufficient?
If you have a mediclaim policy from your employer, that may not be sufficient. Employers may cover the employee and not necessarily his entire family members. And moreover, these policies are not portable and cannot be individualized if you leave the job. Employer-provided policies cannot be transferred to another employer in case you switch your job. Also, employer-provided policies will give you coverage as long as you are employed. Once you retire you may not be having coverage.
Here is a link to why company provided health insurance is not sufficient.
It is really unfortunate that only after your retirement you need health insurance at the most. If you plan to take a fresh policy after retirement, the insurance company will not cover the pre-existing diseases at that point in time. Though your employer provides a health insurance policy it is better for you to take a separate health insurance policy at least with a small amount of coverage.
How to decide the coverage amount for your Mediclaim Policy?
The coverage amount of the health insurance policy needs to be decided based on your health consciousness, your family health history, and the class of hospital you choose for treatments.
If you are not health-conscious or you don’t do regular exercises or you don’t follow a proper diet or you frequently take outside food or don’t go for annual health check-ups then it is advisable to go for more sum insured coverage in your mediclaim policy.
If your family has got any adverse health history like heart disease, high blood pressure, stroke, diabetes, kidney disease, cancer, any form of paralysis, or any hereditary disorder then you need to choose a higher coverage amount in your health insurance.
But don’t assume in case you have a good lifestyle and health history that you won’t need a health insurance policy. You have no control of accidents or sicknesses that could affect you in the future, hence it’s good and safe to be insured.
If you will be choosing high-class hospitals for your treatment then you need to go for higher sum assured. If you will be choosing medium level or low-level hospitals then you can choose the coverage amount accordingly.
Also, you need to revise your health insurance coverage amount based on the changes in the above factors and the changes in the medical cost. Also the increase in the age needs to be considered for deciding the coverage amount.
Here is a link to find how much health insurance cover you need.
Tax benefits for Mediclaim Policy
The icing on the cake is you get tax benefit under section 80D for the mediclaim premium paid. Here are the total tax deductions available for an individual, his spouse, his dependent children, and parents under Sec 80 D.
Note: Senior citizens also include senior citizens of 80 yrs and above.
Now let’s check the dos and don’ts in a mediclaim policy.
Dos When buying Mediclaim Policy
- Do read the reviews of the policy you wish to buy
- Do check the company’s background
- Do take help of an experienced advisor when selecting the policy
- Focus more on the important features of the policy
- Do inform them about your health issues
- Do check all the information once the policy is issued
- Do know about all the exclusions in your health insurance policy
Don’ts When buying Mediclaim Policy
- Don’t let the insurance agent fill your form
- Never lie while taking health insurance
- Never delay your parent’s health insurance
Points to Note When buying Mediclaim Policy
- Pre and post hospitalization expenses are covered
- Cashless treatment is available
- Lifetime renewability feature
- Free yearly health checkups
- Premiums increase as per you age slab
Here is a link to lesser known facts of mediclaim policy.
Time to take Mediclaim Policy
Most people don’t think about health insurance very often. But it comes to mind first when a loved one is sick. Mediclaim policy is one of those things everyone knows he or she should take but usually puts off until a more opportune time. Living without a mediclaim policy is like going out on a rainy day without an umbrella or a raincoat.
If you have not covered adequately yourself and your dependents with mediclaim policy so far, then now is the right time to take action. The fact that you are reading this article shows you have decided to stop procrastinating, delaying and have answered the ancient question, “If not now, when?” with “NOW!”.
Here is a link to choose the ideal mediclaim policy.
To stop procrastinating on taking mediclaim policy and other financial decisions, and progress on the way to wealth accumulation, you should have a well-drafted financial plan. If you are REALLY interested to create a workable financial plan, then you can take advantage of