Detailed insights, latest updates, articles and more on health insurance.

Thursday 27 April 2017

9 Important Insurance Resolutions for 2017

We have recently completed first quarter of this year 2017. I know, its too late to make resolutions for a year. However, for taking good decisions, there is no perfect or imperfect time. We make resolutions for a new, bright beginning. We all know that change is the only thing that is constant. Your decisions related to insurance also need to change. So, are you all set to make a few changes with regard to your insurance plans? These changes will enable you to earn all the benefits offered by insurance policies. Let us look at each of these decisions.
Source: theglobalfinancial.com

Important insurance decisions that you can make in 2017:

Let us now discuss some of the decisions that you can take regarding insurance -
  • Purchase a health insurance early: Do you think that you do not need a health insurance policy right now? Well, you may want to reconsider this idea. Many of you may think that you do not need a medical insurance policy at an early age. You can buy a policy at an early age so that you do not have to pay high premiums. Health care expenses are continuously increasing and hence, taking a health insurance policy to avoid medical expenses absolutely makes sense.
  • Stop looking for returns from your insurance policy: If you think that buying an insurance policy will generate returns, you have been wrong. You should always treat insurance plans and investment plans as two different things. When you combine both insurance and normal investments, you may incur losses.
  • Select a comprehensive motor insurance policy: When you are planning to purchase a motor insurance policy, always go for a comprehensive one. Avoid taking a liability only cover. This will protect you only from legal liability and it does not cover third party damage or damage caused to your vehicle. A comprehensive motor insurance policy or a package cover will secure the vehicle owner from legal charges and cover the vehicle’s own damage. It will also reimburse the loss caused to the third party.
  • Purchase an insurance policy online: You do not have to rely on an insurance agent anymore to buy an insurance product. You can go online and choose from a wide range of insurance policies for your different needs. Whether you need life, motor, or health insurance, you can buy and renew your insurance policy through digital modes. Buying an insurance policy online is faster and easier. You can compare policies more efficiently online and you will have less paperwork when you apply for insurance online. You also do not have to worry about miss-selling of policies when you buy digitally.
  • Understand your insurance policy completely: When you take an insurance policy, make it a point to get full clarity regarding your insurance policy. Understand the claim filing process, advantages of your policy, your policy coverage and the exclusions and inclusions of your policy coverage, co-payment, personal injury protection, collision coverage, auto liability coverage, and so on.
  • Start with a term plan: Haven’t you purchased a life insurance policy till now? No worries. You can start with a term life insurance plan. It is a very cost-efficient plan and is the ideal choice for a first-timer in the insurance purchasing industry.
  • Evaluate your insurance policy on a regular basis: If you purchase an insurance policy and pay its premiums correctly, it is not sufficient. You need to also evaluate your insurance policy constantly and make changes when required. You will have to adjust your policy in order to obtain the benefits that keep varying with the fast-changing insurance sector.
  • Maintain transparency about your insurance product: When you are filing a claim, give full information to your policy provider such as medical history of you and your family, your claim records, date of loss or damage, location of loss or damage, etc. You should also make sure that your insurance provider is being transparent about the terms of your policy. Get accurate details regarding your policy from your insurer.
  • Refrain from buying insurance policies just because they are economical: This year, you have to promise not to purchase insurance policies simply because they are economical. Many insurance companies provide cheap insurance policies in the market where they will make you enter into cost-sharing agreements. You will have sub-limits, co-payments, and deductibles. You can make a list of all your insurance needs and then purchase an appropriate policy instead of a random inexpensive policy.
With these simple guidelines and tips, you can make a brand new start while planning your insurance policy and coverage options. You can stay secure and assured that your insurance company has got you covered in times of danger.
Share:

Friday 28 August 2015

New Health Savings Plan by IRDA - How it Works

The Insurance Regulatory and Development Authority of India (IRDA) has come up with a new health insurance product to speed up the penetration of health insurance in India. The product will be launched soon in the insurance market. The product is expected to cater to the needs of the people living in rural and semi-urban areas. 

Normally, two options are available for a person who wants to buy a health insurance cover.  Either he/she can opt for an indemnity plan or for a critical illness cover. An indemnity plan covers hospitalization expense of the policyholder while a critical illness plan provides cover against the treatment of particular critical illnesses mentioned in the policy. A critical illness cover repays the sum assured to the policyholder who can use it for a variety of purposes. 

New health savings plan suggested by IRDA:

Health savings plan from IRDA


The new health savings plan designed by IRDA carries the same features that an endowment life insurance plan has. However, the only difference both is that the cover offered by the new health insurance policy can be used only for covering medical expense. Also, this new plan will come with a savings component which makes it different from regular insurance plans. The plan will provide cover only for health related expenses. The policyholder will get an account with this plan wherein he/ she can save money for future medical expenses. 

The suggested health savings account will provide interest on your savings. However, you cannot use this account like your normal savings bank account. For this health savings account, premiums will be divided into three components.  The first component of premium will be for risk charges for health insurance, the second component will be for expenditures, and the third will be for savings component. You will be able to renew the health insurance cover offered by the plan. However, the risk charges may vary at renewals. Premiums paid under this health insurance plan will be exempted from income tax under section 80D of the Indian Income Tax Act. You can get tax exemption up to Rs. 20,000 every year.

The plan will help you save and get cover for your medical expenses. The investments made by you with this plan will grow over the years, and you will be allowed to withdraw your savings at maturity. However, you will be allowed to withdraw savings only to meet your medical expenses. 

Risk coverage by the plan: 

The plan will basically function like a top up plan. For example, if you have a health cover of Rs. 3, 00,000, and you exceed that amount, the plan will provide you with extra cover.  Also, the insurance provider may choose to provide cover for specific critical illnesses which are not covered by regular health insurance policies. 

Know the charges: 

This new health insurance savings plan requires a minimum investment of Rs. 25,000.  The plan is likely to have a three-year lock in period. Also, 15% of your annual premium will be paid as agent commission in the first year. Going forward, it will be 10% in the second year and 5 % in the third, fourth and fifth years.

No doubt, this new health savings plan will help you save money for your emergency medical expenses. But, there are a few limitations which we cannot overlook. Firstly, the savings done through this plan could be used only for medical emergencies.  Secondly, as the minimum premium charged by this plan is Rs. 25,000, it will be difficult for common people to afford and reap the benefits of this new health insurance plan. Compared to what you pay for a regular health insurance plan, this new health insurance is expensive. With a regular health insurance plan, you can get coverage up to Rs. 5, 00,000 by paying an annual premium of Rs.5,000.

Share:

Monday 30 March 2015

Is Being Covered by Your Employer’s Health Insurance Enough?

Most of us don’t take health insurance because our employer covers us under group insurance policies resulting in gratuity. In fact, most of us are also unaware of the extent of the coverage provided by the group health insurance provided by our employers. What happens if we have to pay out of our own pockets in order to cover our medical bills entirely?



Advantages and disadvantages of employer’s health insurance

Before we get ahead of ourselves, let us understand the ups and downs of relying entirely on the health insurance provided by our employers.
  • We receive the insurance provided by our employers at much lower premiums than individual health insurance policies. Not just that, the health insurance coverage provided by our employers is available to us without any restrictions. 
  • Added to that, group health insurance policies do not have strict restrictions on persons with past medical histories. Even age is not a barrier to get a group health insurance plan under our employers.

That said, the cons of depending on our employer’s health insurance policy alone outplay the pros.
  • Our health insurance, under our employer’s master policy, is only valid as long as we are still under their employment.
  • We are not covered under any policy in the instance that we are between jobs. Our family is open to risk as long as we are not employed with an organization.
  • Furthermore, if the organization fails to make premium payments, the health insurance policy can be voided.
  • Since the health insurance provided by employers comes under group insurance plans, they tend to offer limited coverage. These policies are designed to cover all of the employees employed with the organization, hence may heed to sub-limits under various heads.

When our employer’s health insurance plan is not enough

What happens when we are faced with certain unfavorable conditions, wherein, the health insurance plans availed under group health schemes may not provide adequate coverage?

What’s more is that a new breed of companies that are springing up are withdrawing from caring for elder parents of their employees. Where does this leave our parents when we are away working towards our futures?

Important riders under the categories of pre and post illness costs such as doctor’s fees, nursing care, ambulance charges, daily cash allowances, diagnostic tests, etc. may not be provided under the health insurance policies provided by most employers. These expenses amount to a large sum during a medical emergency.

Premiums on post-retirement health insurance policies are usually very high. A person needs health insurance most pressingly in the waning post retirement years. Employers offer health insurance for the younger years of our lives when most of us are at our health’s peak.

What could be an all-round solution?

To supplement our employer’s health insurance policies, we must opt for an individual or floater health insurance policy. Individual health insurance policies can be customized to suit the variant needs of different individuals of a single organization. They provide us with riders that fit our specific preferences. We could look into the various available options of top-ups, fixed benefit policies or even indemnity-based regular health insurance policies.

Example to explain:

Under the HDFC Ergo Health Suraksha policy, company assures us of no sub limits on the doctor’s fees, diseases, hospitals charges such as room rents, etc. Health Suraksha policy also provides coverage like in-patient treatments, hospitalization costs, pre and post hospitalization costs, check-ups and treatments.

All of this is provided to us at reasonable prices. HDFC Ergo Health Insurance attempts to administer comprehensive health insurance plans that fits every single one of our budgets.
Share:

Wednesday 21 January 2015

Health Insurance now being Sold at a Park Near You

Almost every one of us know that a call from the number starting with 1409 is from our nagging neighborhood telemarketers. Companies have realized that these calls are mostly ignored and therefore have started to visit the customers face to face during their morning walks in the park.
The national capital has already been a witness to such an even on a cold day where customers were warming up to the new approach in spite of the cold weather. While one of the marketing respondents was advising a customer about her obese weight and its long terms effects, Kotak Mahindra Bank was making its presence felt by showcasing their products.

Max Bupa took maximum opportunity in selling their insurance products all across the town at Lodhi Garden. In fact Kunal Sharma aged around 65 says that it is a common sight to see companies marketing their products during their morning walk these days. Companies too have had positive response to this new approach. A Bajaj Allianz representative says that customers are more willing to spare a few minutes during their morning walk as they are not distracted much when compared to dining out or at an amusement park.



Anika Agarwal, head of marketing at Max Bupa says that they are able to target customers easily as it is a known fact that people walk in the morning for good health. Max Bupa has started a fitness initiative in the name of Walk for Health to promote a healthy lifestyle. The company conducts regular mini events across various locations in the capital city which includes Lodhi Garden and Siri Fort besides other parts where they get most number of walkers. The company has noticed a steep rise in the number of people during the weekends as most walkers come with their families to enjoy the morning walk. The company has also set up kiosks and free health camps to get the customers attracted towards their products.

Delhi has always been a city of morning walkers with a lot of importance being given to the availability of parks but the new marketing bug is fast catching in the other parts of the country as well. For example, in Chennai morning walkers are liable to be approached by insurance agents to offer services like free health check-up and in the process try to sell their products.


The new approach would surely do well as customers are spoilt for choice and sometimes even confused to choose the right health insurance policy. The new approach would go a long way but only if company’s maintain the thin line between suggesting customers the best health insurance and nagging them to buy their products. In today’s busy schedule the last thing customer’s would expect is to someone annoy their only possible moment of having a peaceful time. As of now the companies are doing a good and hopefully keep it this way without turning the new approach into yet another sales pitch.

Related Video:
Watch out 5 simple steps for young couples to be financially stable.


Share:

Monday 17 November 2014

5 Steps for Young Couples to be Financially Stable

You can hate it, you can love it but you cannot live without it. Yes, money is arguably one of the top requirements to survive in today’s world. However, everyone seems to make money but only few of them seem to be happy with the money they make. On deeper introspection you will find that the equation is not in making money but in managing money. As the saying goes, early bird catches the worm, similarly starting early is always a good way to manage money, not only do you have more time but also you can recover in case you make any wrong decisions as well.

Keeping this in mind, I have listed out five important steps which can be taken by young couples to be financially stable & be happy.

Steps for Financially Stable Married Life
Credit : Flickr
Avoid Splurging

Everyone likes to spend money if they had enough money. Surely, money is not everything but it is definitely not wise to spend the money if you have an important bill to pay, or an EMI or a debt. Always before you spend the money do not assume that you will get that bonus or that profit you were expecting. Good days are not always here to stay and you could be in the doldrums anytime. So be 100% sure that the money you are spending is only for spending and it was not useful elsewhere. Take stock of your finances and if possible keep a separate amount for fun expenses.

Start Saving for Child

With today’s ever increasing costs raising kids no kid’s game and you got to clearly plan the expenses with respect to the future of your kids. Make sure you have saved enough money right from the medical expenses for the new born baby to the vaccinations and any other mandatory requirements for the baby like baby food, clothes, day care etc. This is not to make you feel like a miser but just to be wiser so that you don’t get off guard the next time you buy a baby powder and shocked that it costs more than your talcum powder. It always helps to be prepared and when you are prepared you always give a better performance. It only make sense as you do not want to give a stressed environment to the new born baby as well.

Go for Sufficient Life Cover

You always have to a plan B. Yes, in short who will take care of your family if something untoward happens to you? This is where you need to buy a life cover. Ideally life cover should be at least 20 times your annual income. You have to options you can go for term plans which are cheaper but give you higher coverage but do not return any profit or the premium paid as well. Make sure you know the maximum age till which your term plans cover. Term plans do not cover till the person dies after old age. All of them have age limit, mostly up to 75 years of age. On the other hand you have endowment life insurance plans which cost much higher but give you coverage till the participant is deceased or even at the maturity of the plan. So see which plan is better to you and choose accordingly.

Purchase a House if EMI below 40% of Income


Most probably sooner or later everyone likes to own a house for two reasons. One is stop paying rent etc. for the accommodation and the other is to have a stability in life in case you are going to stay, work and live in the same place. Going for home loans is a good option because you need to invest all the savings for your new home, you also get tax rebates, you only pay small EMIs and sooner or later the property you purchased is an asset. Ideally banks too would issue home loans based on 40% of your income. This ensures you have enough money for other expenses.

Get the Right Health Plan

Health is wealth. However, with today’s high cost medical facilities the saying only becomes stronger. Having a good health insurance saves you from sudden high expenses in case of a sudden health problem and also keeps you financially safe.
Share: