A health insurance plan covers the cost of medical and surgical expenses whereas; a family floater health insurance plan covers the entire family’s hospitalization.
Can you think of something more important than money? How about good health? No price can be put on good health and it is great if you are enjoying good health. But, what if you fall ill all of a sudden? How will you pay the medical bills?
Today I would love to tell, why you not only need health insurance but also must have sufficient health insurance.
Sedentary lifestyle = lifestyle diseases
Let’s face it. You, a working citizen of our country, spend most of your life sitting down. A sedentary lifestyle and unhealthy food habits, puts you at risk of lifestyle diseases like diabetes, heart disease, stroke and cancer. These diseases are claiming young lives and are very costly to treat. You definitely need health insurance at a young age and a sufficient amount of it. A health insurance plan not only gives you money for hospitalization, but also offers you annual health checks. You are encouraged to take care of your health.
Your employer cover is just not enough
Here’s a shocking fact. About 95% of middle class citizens in India do not have sufficient health insurance. Worse, most of them are young working citizens. Youngsters depend on group health insurance, provided by their employer. But is this a wise move? Group health insurance covers you, only till you work for this Company. With layoffs common nowadays, you may find yourself out of job and out of the group health plan. Paying medical bills without a health insurance plan, can be a nightmare? Do not let a single day pass, without being covered by a health insurance plan.
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Your health plan should cover you for sickness, a medical emergency, a critical ailment and even an accident. You need to check the amount of hospital room rent your health insurance plan is willing to pay. If you are hospitalized, will the health insurance plan cover you for the entire cost of the room, or are room costs capped in the health plan called sub-limits? Does your health insurance plan cover you for day care treatment? Treatment undertaken in a hospital for less than 24 hours is day care treatment.
If you are diagnosed with a medical condition or a disease within 30 days of availing the health insurance plan, you will not be covered under the plan. This is the waiting period of the health insurance plan and is generally for a month. What you need to check for in your health insurance plan, is the pre-existing disease clause. Some health insurance plans cover pre-existing diseases after 2 years, 3 years or 4 years. Choose a health insurance plan which has a very less waiting period for pre existing diseases.
In a nation of more than a billion citizens, less than 20% have any kind of health insurance. Shockingly, most of our citizens have availed health cover of just around Rs 2 Lakhs. Treatment of lifestyle diseases and critical ailments like heart disease and cancer can run into several lakhs of rupees. Such low health cover is definitely not enough. Now to the big question. How much is enough.
I will now give you a few tips on how much health insurance you need.
The first step of availing health insurance is affordability. Higher the premium paid, more is the health cover you get. So can you afford the health insurance premium? This of course depends on the income you earn.
If you earn a good salary, 2% of your annual income should be your health insurance premium. This health insurance premium, should be enough to give you decent health cover.
You must avail a health insurance cover which is between 50% to 100% of your annual income. Also consider the amount you have spent on medical expenses, over the last three years. If you have a family history of disease, make sure to avail a higher health insurance cover.
The health insurance cover you need = 50% of your annual income + 100% of your medical expenses in the last 3 years.
If you are young and healthy, you need less health insurance cover. The health insurance cover goes up as you enter middle age and cross the magic mark of 45 years. Higher your age, more is the health insurance cover you need.
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