Medical Insurance for family | Health Insurance for yourself

What is the right age to buy Health Insurance? Why should not it be along with your parent's health insurance plan? And what are the things to keep in mind while buying it? We will get to know this article.

Dear friends welcome to another part of 'The Complete Guide to Buying Insurance' with as my knowledge partner. In this series, I am covering all the minute details about insurance that you must know so that you can secure your family's future as well as your future. Till now we have covered life insurance, Health insurance for parents, and in this article, I will cover health insurance specifically for you and your immediate family. Specifically, four things: (1) What is the right age to buy health insurance? When should you buy your health insurance plan?  (2) Why do not combine your and your parent's health insurance plan? (3) Why should be an additional health insurance plan along with a corporate plan? (4) Thing to keep in mind while buying health insurance. All right let's get started...

Medical Insurance for family
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1. What is the right age to buy health insurance?

The definition of Insurance is that, if 'X' happens then give me financial protection for health insurance, this X' becomes if hospitalization happens then give me financial protection. Hospitalization is never planned, there are very And dear friends, there are so many examples where all the savings and investments of families have been wiped out becomes there was a hospitalization needed without any warning, without any planning, that is why health insurance is important. Now if you are young and healthy and you take health insurance at that point, then that is for me the right time to do that. Why? Three reasons:

1. Maximum cover at the least premium

Your premium would be the least. Because you are young and healthy, your risk of hospitalization is so little that the insurance company would give you maximum cover at the least premium.

2. You can get 'no claim bonus'

Since the likelihood of your hospitalization is so low, you can get 'no claim bonus' rear on year. No claim bonus means that if you have not claimed anything in one year from insurance. If you did not get hospitalization and did not claim any insurance, then at the time of renewal at the year and you will get a ' no claim bonus' at the same premium. So, over the years your cover keeps increasing for the same premium which can only happen if the chances for your claim are very less, which is possible when we are healthy and young.

3. Lower rejection rates

If you take insurance at a healthy and young age, then God forbid, even if you are hospitalized then your rejection rate would be very low, because it is quite possible that there was nothing to suggest that you hide something, or you did not disclose a pre-existing disease, so and so forth.

Because of these three reasons, I genuinely think that the best time to buy insurance for yourself and your family should be as early as possible. I remember I took insurance for my family at the age of 24. So the way I organized myself is, first me, my parents and my sister were there, so there was an insurance plan for all four of us, and then when I got married, I immediately took another insurance plan for my wife and me, and I did not combine it with my parent's insurance and I will tell you why very soon, and then when we had kids we gradually added them in the insurance plan. And increased our premium so that cover also increases. Now I have two insurances, one which is for my parents, and I pay for it but that is exclusively for parents, it has a lot of premium but it is only for those two and that is great. And then I have one insurance for myself which I started at the age of 24, today I am 40, so for 17 years with my no claim bonus it has increased a lot. I work with only one insurance company till now so it worked out really really well for me. 

2. Don't combine your medical/health insurance with your parents' medical/health insurance

Now in my previous article 'The Complete Guide to Buying Insurance'  series, I stressed a lot and I am repeating it again in this article, your parent's health insurance plan should not be combined with your family health insurance plan. Take a separate insurance plan for parents and to know how and why and what are the things to keep in mind, please read 'Health Insurance for your parents'. Take a dedicated plan for your family, which we will discuss today.

3. Why should be an additional health insurance plan along with a corporate plan?

Then comes the corporate health plan. Many working professionals get a corporate health insurance plan as part of their corporate benefit, and a lot of people think that since there is a corporate health plan so it's great, then what is a need to buy a separate plan, because in that plan you, your partner, your children, your parents and in some cases your in-laws are also covered, so it seems like the best plan ever. You do not even have to bear its expenses, the company is bearing it, so it feels even better, but it has some limitations which you should know and that is what I am going to share right now.

1. This plan will terminate as soon as

That means if you are not ready to work in a company for all of your life, then please so sensible, take a separate health insurance plan as well as for yourself. It is important to recognize that in India it is possible to have two insurance plans. For cashless you can use only one insurance plan at one time, but after that cashless payment the additional amount, which may be your cashless amount could not cover completely, you can cover it by another plan as well. For example, your hospital bill came out to be Rs 4 lakhs and the limit in your corporate insurance is Rs 2 lakhs, but you also have a separate plan for yourself worth Rs 3 lakhs, then how can you do this? From your bill of 4 lakhs, you can bear 3 lakhs of it cashless through your own plan and you will bear the remaining Rs 1 lakh from your pocket, and then using the 2 lakh corporate plan you will file for its reimbursement.  For that, you will need original receipts, original bills from the hospital which you as it is getting at the time of the discharge, you will submit those and you will get Rs 1 lakh out of your Rs 2 lakh cover, and hence you Rs 4 lakh could be covered. A lot of people do not know that you can even combine two insurance, which is why take a personal plan for yourself/family along with your corporate insurance plan.

2. Co-pay

Many companies have a concept of co-pay. The concept of co-pay is given so that people do not misuse this corporate insurance, which means that a certain percentage of your total bill would be covered by the company but a certain percentage will have to be covered by you yourself. Usually, companies keep a co-pay of 10-20% which means, if your bill is Rs 4 lakhs and your corporate cover is for 4 lakhs, then all of it would not be borne by the corporate cover isteat, if your co-pay is 10% then only Rs 3.6 lakhs will go from the corporate cover and you will have to give Rs 40,000 from your own pocket to make up for these 4 lakhs bill. So, please check it your corporate health plan has a clause of co-pay or not, if yes then again it is a limitation which you should not have ideally in a health insurance plan.

3. Limited cover

Because the company is bearing the expense, their coverage is limited. Usually, I have seen that per life they give a plan of Rs 1-2 lakhs, it there are you, your parents and maybe two kids, then you will get a plan worth Rs 3-4 or a maximum of Rs 6-8 lakhs. But if you buy it yourself then you can decide on the coverage you want.  You can take a coverage worth Rs 10 lakhs for a family of 2 adults and 2 kids, and if you are just two adults then you can take a plan worth 5 lakhs. It basically becomes your choice and it has continued because you may leave the job but you would not leave yourself, of course, so you will continue renewing this policy, which is why again as I repeat please take a separate health insurance plan for yourself/family along with the corporate insurance plan.

4. Thing to keep in mind while buying health insurance

Now finally, when you are looking for an insurance plan for yourself, then which 5 things you should bear in mind so that you choose the right insurance plan.

1. Right Amount

According to me, Rs 2-2.5 lakh per adult and Rs 1 lakh per child should be the ideal cover amount, which means if you are two people then around 5 lakhs, if you are 2 adults and 1 child then (5 lakh+ 1 lakh) 6 lakhs, and if you are 2 adult and 2 children then (5 lakh + 2 lakh) 7 lakhs.

Proudly, that should be how you determine the right amount for yourself, of course, it is finally your decision, but according to me, this is a nice happy guiding metric.

2. Network Hospitals

Whichever insurance you are taking, what is the network of cashless hospitals in it? Is that cashless network present in your area or not, because many can be far away but how many hospitals are present in your vicinity which give you a cashless service from the insurance company that you have bought it from?

3. Facility for lifetime renewal

Lifetime renewal is very important because as you age, maybe you would like to increase your cover or you can continuously renew it forever and ever, so this should be one option because some insurance policies have a cap that you can renew up to a certain number of years, you can not renew it for a lifetime.

4. Having medical check-ups in the plan

When we are young, we easily ignore that, ‘What is the need for a medical check-up? We are young and everything is fine', but that is where if your insurance provides you free medical check-ups per year, then it is an incentive not to waste it and use it, so please go with plans that provide you with a medical check-up.

5. Maternity benefits

Maternity benefits are very important because many insurance plans give very restricted maternity benefits, either the amount is less or the waiting period is more, If you are planning a family then it is important that you take as much amount as possible for the maternity benefits and choose as little waiting period as possible so that you can avail of this benefit. These were the basics of medical/health insurance.

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