All you wanted to know about Mediclaim Policy

Table of Contents:

Do you need a Mediclaim Policy?
What if you don’t have a mediclaim policy?
Never delay buying a mediclaim policy
Check Diseases covered under Mediclaim Policy
Is Employer Provided Mediclaim Policy sufficient?
Mediclaim policy during old age
How to decide the coverage amount for your Mediclaim Policy?
Tax benefits for Mediclaim Policy
Your own medical cover for the pre-existing disease
Dos when buying Mediclaim Policy
Don’ts When buying Mediclaim Policy
Points to Note When buying Mediclaim Policy
Time to take Mediclaim Policy

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.

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

Many delays 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 mediclaim policy at all. This is because when you start delaying, you may be denied if the health insurance 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 mediclaim policy now is better than getting the best one after a few years.

Here is a checklist for selecting the right health insurance.

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 the 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 for 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 the 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. Especially, in your 40s, it’s always safe to get yourself double health insurance. Employers may cover the employee and not necessarily his entire family members. And moreover, these mediclaim policies are not portable and cannot be individualized if you leave the job. Employer-provided medical policies cannot be transferred to another employer in case you switch your job. Also, employer-provided mediclaim 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.

Mediclaim policy during old age

It is really unfortunate that only after your retirement you need health insurance at the most. Also, getting medical cover for people above the age of 60 is not so easy.  If you plan to take a fresh mediclaim 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.

In order to get yourself a larger health insurance plan, it’s always a smarter move to take a “top-up” plan. Think of this as a mediclaim policy that will pay up after a certain threshold amount has been paid by you. This health insurance policy would allow old age people to at least have a chance to get covered with proper mediclaim cover.

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, the place where you live 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 over accidents or sicknesses that could affect you in the future, hence it’s good and safe to be insured.

Your place of living should also be considered while choosing your medical cover. If you will be choosing high-class hospitals for your treatment then you need to go for a 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 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 a 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 his parents under Sec 80 D.

Note: Senior citizens also include senior citizens of 80 yrs and above.

Your own medical cover for the pre-existing disease

We don’t know what might happen the next minute. Do we?

Supposed, if you already have a few health issues before the time of taking up a mediclaim cover, then those pre-existing diseases won’t be covered under this fresh mediclaim policy.   

Sadly, this is how an insurance company functions. 

So if you find yourself with no mediclaim policy to cover you during an existing or pre-existing medical situation, always create your own corpus. Hence, forming an own helping hand.  

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

• Price comparison of the policy today and in future
• Pre and post hospitalization expenses are covered
• Check the claim history of the company
• Cashless treatment is available
• Lifetime renewability feature
• Free yearly health check-ups
• Premiums increase as per your 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