Health Insurance

Health Insurance is a way of mitigation of financial risk arising out of bad health condition by paying smaller amounts (around 5-10% of your total risk cover, these are called premiums) over a period of time.

Health is Wealth– Health Insurance protects you from financial drain during the time of medical emergencies at the cost of a premium you pay to the insurance company. Therefore, it is essential to have an insurance policy for you and your family members so that you don’t end up burning a hole in your pocket if an emergency occurs. One bad condition will eradicate all your saving and investment i.e. wealth.

Healthcare inflation has been growing at a 5–10% YoY in India.

You can avail any of the following types of policies, or a combinations, in order to customize it to cover all your needs:

  • Health Insurance for Individuals
  • Family Floater Health Insurance Plan
  • Health Insurance for Senior Citizens
  • Corporate Health Insurance Policy
  • Critical Illness Policy
  • Dread Disease Health Insurance Policy

One accident or brutal disease for any family members can risk your family finance position.

Things to remember

  • Corporate Policy is not enough _ Have separate policy because once you will leave organization this kind of policy won’t help in claims.
  • Class A cities, the cover amount should at least be Rs.10 lakh given the high cost of living in metro cities.
  • For people living in Class B and C cities, the sum insured should be at least Rs.4- 5 lakh”.

There is no thumb rule for this. E.g. As per ICICI Lombard report nearly 25% deaths before the age of 70 in India occur due to cardiovascular diseases, if a Angioplasty or surgery is required it can cost you Rs.6 lacs.

Before even investments or savings one should concentrate on Medical insurance. This is because they are unexpected and lead you both an emotional and financial blow. The financial part of this can be effectively managed by insurance..