Health insurance plan, Why it's so important to have one?

Economics 28 November 2020 1:33:PM

Health-insurance-by-GEPL-capital-min

What type of image you get in your mind when you say “being healthy”. Probably exercise, a balanced diet, and a good amount of sleep. But these days even these basic rules seem tough. People are currently embracing the various healthy and safe steps, including self-isolation and social distancing, to prevent infection. Yet health protection can't be ensured forever. People may have to face unexpected mishaps in their health. It is a case that causes many problems. It can also produce a stressful situation that gives the people and the individuals associated with them a hard time. And that's where the Health insurance plan comes.  

What is a health insurance Plan:- 

A health insurance plan is a type of insurance that gives the policyholder compensation for medical expenses. The Health insurance policyholder will get compensation for critical disease expenses, surgical expenses, medical expenses, depending on the health insurance plan selected. 

Why is Health Insurance important?

During times of medical emergencies, health insurance provides individuals with a much needed financial backup. Risks and uncertainties in wellbeing are a part of life. You should not expect to get sick, but for the financial factor, one can definitely be prepared. By buying a health insurance plan, one of the ways to be financially prepared against unknown health threats is. 

Health is wealth, and we have seen the importance of this after the pandemic that caught us unaware. The importance of a financial back up can be met by taking a sufficient amount of medical insurance.

One would then wonder, then why build an emergency fund? Let us try and understand the need for medical insurance.

Medical insurance is a type of emergency corpus that is available for you in case of any medical emergency. Can be bought from various insurance companies and a yearly payment is made to keep the policy ‘Sum insured’ available for you in case of a medical emergency.  Similar to an emergency fund, which is built keeping in mind to cover at least 6 months of your monthly expenses in case of any unforeseen situations – like a job loss, salary cut, etc. 

I think this pandemic has been an eye-opener for all and to build an emergency fund and to also take medical insurance in the need of the hour.

Costs keep rising, so does the cost of any medical procedure or expenses. Hence, it is important to take a higher sum insured at a young age and then add something called a ‘top-up’ policy to that.

These days, a minimum of INR5,00,000 is given as a basic medical insurance policy. If your age is 25, male working, you end up paying an average of Rs 7015 a year which is around Rs 19 a day. This when we see from a bigger picture is worth taking.

The cost of health insurance premiums is a lot cheaper than the cost of hospitalization. At times a single admission to the hospital would cover the equivalent of the premium paid for 10 years of a health insurance policy.

Many people ask if it's good to only keep their company health insurance policy. This is the real misconception as mostly the company health insurance policy is valid only till you are in service of the company. The health issues mostly start after retirement then it’s difficult to buy a personal health insurance policy at that age. So I recommend that you need to buy your personal health policy which can be used at later years if required.

The best option in the Health insurance plan:

We are often also asked, what is the best policy to take, should we take a family floater? So to put it simply a family floater is an option that can be considered when you have a family ( spouse, and child below 25years). In a family floater, while the premium is lower the sum insured is available to each family member for the year. A newborn can be added to your policy after 90 days.

An individual policy gives you the sum insured available for you exclusively. In case you want to increase the amount, usually, the amount can be increased or an additional top-up can be taken. This is like a recharge once the existing policy is over.

The below table will give you an indication of the average premiums that are possibly paid by a 32-year-old male with a family of a single child age 10 years. Sum insured for INR10,00,000.

Name  Age  The premium for Individual policy
Mr. Sham Singh 32 9725
Mrs. Rita Singh 28 9725
Ms. Priya Singh 10 9725

The premium usually stays constant till the age of 35 years. Above is an illustration to give you an indication and it will vary for the actual product taken or policy during the time of issue.

Medical insurance is a must and with a sum of INR 10,00,000 taken now, with inflation and over a period 10 years will need to be worth at least INR 17,00,000 now. Hence, an assessment of this is important and while you take medical insurance for your medical needs, it is also important to understand the amount to be taken as the big I, that is inflation will eat us all up. 

So, Cover your self and your family up with the best health insurance plan by GEPL capital insurance plan. We have the best insurers to provide you the best insurance policies from health to vehicle. 

So get yours now: {TAP ME}.