Top 5 Reasons to Buy Health Insurance
Written on: Februarie 14, 2022
Title : Top 5 Reasons to Buy Health Insurance
link : Top 5 Reasons to Buy Health Insurance
Top 5 Reasons to Buy Health Insurance
Top 5 Reasons to Buy Health Insurance
Recently I came across an incidence where a sole bread earner in the family was admitted because of corona he was in the icu for almost seven eight days back to back his wife who had no idea about the finances in the family she was so tense and she was so confused as to what has to be done is she supposed to focus on the hospital bills is she supposed to focus on her children is she supposed to focus on the emi's which are to be paid for the house is she supposed to focus on the ems to be paid for the car and and she was so damn
confused about what is to be done in that case I hope this situation god forbid none of you should be in a position to face this but if it does happen are you prepared for such a thing hey folks see Krishna ranade here and I welcome you all to another interesting video which is about health insurance we do talk about a lot of financial concepts in many many many of our videos but today's video is not about fun it's about a serious topic which is health insurance and unfortunately a lot of us do ignore this part so I want everyone to understand the importance of health insurance in today's video we are going to talk about a lot of things as to why we need health insurance we are going to talk about what are the things top 10 things that we should be checking out before buying any health insurance so i feel this is a proper educational video which you must understand and i appeal
to everyone that this being a very important concept please share this video with all your near and dear ones so let's try and understand in the most simple manner as to what exactly do we mean by health insurance it is nothing but protection which is offered to you to get your expenses which you have already spent either reimbursed or they get directly paid by the insurance company so I'll give you a simple example there are two possibilities which are the two possibilities assume that there is a hospitalization possibility number one
you pay the entire hospital bill and that insurance company will repay the amount to you possibility number two is that the insurance company will directly pay the amount to the hospital okay so that is called a cashless you might have heard this word right now is this coming up like is this one of the upcoming financial products or very recent financial product answer is absolutely no health insurance finds its presence way back in counting less artha after that our Indian government introduced it originally for the central government employees than to the state government employees finally in 1986 it was opened for even the private sector employees in 1999 even a regulatory authority which is named as IrDA insurance regulatory development authority was also formed so like we have sebby for stock markets we have IrDA for the insurance sector
okay so with this basic understanding whenever I talk about health insurance please don't say that array but we have lic you can't have lic you can have insurance which is life insurance or you can have health insurance ideally you should have both why life insurance is the replacement of income of the deceased person but health insurance will give you recovery of the expenses which you have spent on your hospitalization now let's understand the top five reasons as to why we should have health insurance i think I am my most important asset and I have to ensure myself and that's the whole and sole reason why I say that in my human balance sheet I have to protect myself as the biggest human asset number two is that savings are saved so you can imagine that if I take six lakh
group I take a year to earn six lakh rupees I would take maybe two years to save those six lakh rupees it would take just seven to eight days to spend those entire six lakh rupees in a hospital bill so to save my savings I need a health insurance number three to deal with medical inflation now what is this so you can imagine that some person had taken health insurance just like five years ago do you think that the hospital bill five years ago and today's hospital bill that amount will be the same answer is no so like there is general inflation in the economy there will be inflation even in the medical bills so it's not only important that you should have health insurance it's also important that you review the amount of health insurance number four is to fight lifestyle diseases I'm sure everyone
has experienced that in the second wave of corona people young people in the age of 20s 30s also faced a lot of problems a lot of respiratory problems there are many people who have problems like diabetes bp obesity in 30s also so too we have to accept this as a fact and we have to ensure that we have proper health insurance to fight these lifestyle diseases and the last one is that we have to ensure ourselves early to stay secure now what is this as a thumb rule our insurance premium is lower if we get ourselves insured early and as and how we grow in age then automatically our premiums go on increasing so very important insure yourselves at a younger age so we are going to talk about top 10 things that you should keep in your mind before buying a health insurance
but wait immediately there will be many people who would be asking in the comment section that before buying health insurance or before buying mediclaim exactly what's the difference between these two so to be really honest that's a long-standing debate whether they are different or whether they are the same theoretically if you ask me there is a slight difference in between these two i'll tell you quickly the background of medic claim originally when medical came into the picture it was introduced just to cover the hospitalization expenses whereas health insurance covered not only hospitalization expenses but some expenses which are in incurred before hospitalization as well as after hospitalization so what do we mean by before hospitalization it may cover some tests like a blood test or something like that right but to compete with this product of health insurance
even many claims started to offer this post-hospitalization pre-hospitalization covers as well so now in today's scenario practically there is as good as no difference between these two again I'm rep repeating that theoretically there might be certain differences but we are not going to talk about these now let's understand top 10 things that you should check before buying health insurance the very first one is cashless treatment so this is specifically useful for those who might not have a lot of excess cash available with them in savings account in fds or whatever so those who have comparatively less surplus can ideally go for a cashless treatment number two is the network
of hospitals now what does that mean whenever you take out any insurance policy they mention the network hospitals which are affiliated with that policy so assume that you are staying in a specific place and the hospital which is covered in the network is at least 10 kilometers away from you that won't make sense right so ensure that the hospital which is there in the network is very close to your house number three-point is coverage for pre and post hospitalization so I just told you some minutes ago that what is pre and post-hospitalization so pre-hospitalization may include certain blood tests they may include certain doctors consultation fees sometimes even these are covered in the policy so check if your policy
has these covered or not post-hospitalization expenses can include therapy expenses so something like let us say there is an accident and post-hospitalization you have to take a physiotherapy treatment so check whether your policy covers such therapy treatments or not right the fourth one is the claim settlement ratio so simple thumb rule higher the better so if I say that claim settlement ratio is 95 it means that out of 100 95 claims were honored so check that you the policy that you have chosen has a high claim settlement ratio the next one is more than hospitalization so if if you're talking about a scenario
where let us see your grandparents are hospitalized it may happen that after they are discharged from the hospital they might have to uh you know take up something like a daycare facility are such expenses covered in your policy or not they can also be checked so typical facilities like daycare facilities uh maybe maternity facilities all these can also be covered in a policy so check if your policy has these or not next one is the restoration benefit now this is a very a nice feature so assume a case a where you have separate policies for the bread owner for his wife and two children, okay then you have four policies
versus a case where there is an umbrella or there is a cover a family plan where all are covered under a single policy plus this value this policy has a restoration benefit means what let's understand let's say that Mr a in this entire case uh falls sick he's hospitalized and he consumes the limit of five lakh which is the insured limit okay now what does the insurance company do is that they will restore that amount now restore for whom let's say his wife is also required to be hospitalized after a few days again she can use that five laksa
cover god forbid but if their children are also required to be hospitalized after a few days they again would get a five lakhs cover but then what is not covered assume that that person gets hospitalized five lakhs cover is over that same person is again hospitalized now this will not be covered okay I hope you have understood the concept of restoration benefit you should check whether this is there in your policy or not the next one is a copay clause what is this some insurance policies may say you may you should pay a specific percentage and we will pay a specific percentage don't go-ahead for such policies either you pay the whole amount or you go for a cashless don't go for like half copay clause or something like that next one is an insurance cap
so you might have a full five lakhs cover as an example but the policy may state that for maternity benefit only 50 000 is the highest amount that will pay okay so be careful read those small clauses for checking out the insurance cap next one is a waiting period now what is this let me give you a recent example so far if I'm talking about corona there are certain policies that if you are taking out health insurance they will say that there is 30 days waiting period for corona just as an example if I take out my policy today and god forbid but tomorrow if I get infected by corona then I will not be covered in that health insurance policy okay so be sure whenever you are buying a new insurance product whether there is a waiting period or not that needs to be checked by you and the last one is no claim bonus so assume that if you pay for your premiums and thankfully
you are not hospitalized don't feel bad about that don't feel bad that my premium is gone it's for your good next year whenever you want to renew your policy ideally the insurance company will say that this year pay a lesser premium and that lesser premium is nothing but your no claim bonus so ensure that you check all these points before buying any health insurance after listening to all these 10 points you might be wondering whether there is a specific website wherein I can get all the data at one place and the answer is yes that's policyvasa.com in this website you can have a look at more than 250 plans to choose from through policy bazaar you can get instant insurance worth 5 lakh rupees and that just to add approximately 300 rupees per month
once you click on view features you will see all these points explained all in one place and you can even know if the policy covers covet treatment or not you can also compare various schemes if you just click on compare options you can get a hundred percent claim assistance and a dedicated relationship manager so if you want to check out policy bazaar just check out the link in the description box so two things that you should avoid while taking out health insurance are the very first one is that very well remember in your mind it's a protection product and not an investment product there will be some people who will say it's a two in one product which will ensure this much percentage return and also your health
no these are two different things don't mix them up to number one number two please don't hide any pre-existing diseases there have been cases where people said all right why to disclose that we already have diabetes unnecessary the premium amount is high and that's why they kept it see as a secret and when there was a claim that claim got dishonored in addition to that such accounts get even blacklisted so that they might have to face a lot of hindrances while renewing their policy and unnecessarily they will have to pay a higher premium at a later stage so please ensure that you don't do any of these two things while taking your health insurance so many people have a question in their mind that does their existing health insurance policy cover corona or not so as per the current irdai guidelines it is mandatory for all the insurance companies
to give reimbursement for the corona disease right but if you are newly applying for any health insurance policy then there might be a waiting period I just told you about the waiting period like just a few minutes ago right so ensure whether there is a waiting period or not before you take up a new insurance policy there might be some people who might say that we are not really bothered about other diseases we just want a pure corona related protection so are there any policies which are focusing only and only on this disease answer is yes there are two policies the very first one is corona there is one known as corona Raksha if you want to know about these policies more in detail I have written a separate blog on my website rachanaranade.com so let's understand now that are there any tax benefits if you actually take health insurance or not there is a separate section 80d of income tax act which gives us an exemption up to 25 000 rupees
if you are an individual below 60 years if you are taking out insurance for your parents who are above 60 years so scenario 2 is that you are below 60 years and your parents are above 60 years then you will get an exemption up to 75 000 in total why you are 25 000 and your parents 50 000 if we are talking about a scenario three where you are also above 60 years and obviously your parents are also above 60 years, in that case, you will get an exemption up to 1 lakh rupees because your 50 000 rupees and your parents 50 000 rupees
one important point to be noted here is that if you are paying your premiums in cash then no deduction will be available so I hope you have enjoyed this video this was I guess the first video which did not have even like 0.1 percent of fun but I feel this was an important video about your overall awareness about finances so please share this video with your friends take care and bye
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