Let’s face it. Most of us are “deal hunters”. We want the maximum “juice” from a product/service in the minimum price. No wonder the big branded stores, in that flashy mall are full with the so called “end-of-season dhamaka sale”
OK. Agree, buying a short term product (like clothing, accessories, electronics), in an off-season sale can help you save huge money, but what about buying a long term product or service?
Buying a long term paying product or service based on short term costs and benefits can be one big blunder. A blunder, you may not even realize till it is too late to migrate from the product.
Let’s look at Health Insurance. Health Insurance is a complex long term product, where both premium and benefits rise, renewal after renewal. While health insurance premium increases on a change of age bracket, you cross over the waiting periods or time bound exclusions in your mediclaim policy for specified illness and pre-existing illnesses, making for a wider health insurance cover.
Health Insurance products in India are under a free price market. Prices are not governed by any government or quasi government body. Health Insurance companies price their products based on the design and construct of the policy, and their internal pricing guidelines/philosophy. The same product with the same features could be priced differentially by two Health Insurance Companies. Moreover the pricing methods could be different as the customer’s age progresses.
As recommended in our earlier blog posts on Health Insurance Reviews, we therefore always recommend that you look at future premiums of your selected health insurance policy, besides comparing current year premiums. This gives you a flavour of the price increase you can expect in the future.
Health Insurance Premiums – How they increase?
We have attempted at making this exercise easy for you. We plotted the current premium of top health insurance products on a graph, and here’s what came out.
Premium below is for a Rs. five lakhs family floater for Self + Spouse + 2 Kids, 35 years of age, living in Mumbai.
Notes to the chart:
• In case where health insurance plans convert into individual plans at older ages (Oriental & Star) we have taken a Rs. 3 Lakhs Individual cover plan for each member till 75 years of age.
• All Premiums above, are inclusive of service tax.
What do you make out of this trend?
We observe the intensity of change of premium is not the same for all health insurance policies. We noticed that some health policies had very steep premium rise, post 45 years. If you look deeper, it seems that the premium rise was drastic for all the mediclaim policies that have no limits, lower restrictions vis-à-vis mediclaim policies that had limits (room rent limits, surgery limits) and more restrictions.
Are you surprised by the drastic premium rise? You shouldn’t.
Health Insurance Reviews, by design, is a community fund, where the healthy pay for claims of the sick, through premium. If the claims made are even slightly extravagant and unreasonable, in terms of choice of hospitals, choice of rooms, by the community members, just because the policy is “no limits”, it is but natural that the premiums, in turn, would be unreasonable. Frequent jack-up of premiums, could be the price you pay for a “no limits” product. On the other hand, when you buy a policy which has so short term restrictions or limits on expenses, you take a call that you would take care of such deductions from your own pocket.
What should you do?
You should either be prepared to pay for a premium product you have purchased, or you should settle for a balanced product, one which requires you, (rather forces you) to be prudent in your hospital expenditure, your selection of hospital, room etc.
Here’s what I recommend:
• Do not buy your health insurance policy only based on comparison of the current features and premiums, ensure you look at how the health insurance premiums rise in the older ages.You now need to take a call between a top-end product with super benefits but coupled with steep rise in premium in old ages, or settle with a health insurance policy with basic core benefits, some restrictions on claims, but with more stable rise in premiums.
• If you are already holding a health insurance policy, and find the premium unaffordable, with the above calculation, explore the possibility of using health insurance portability to port the policy into a more balanced plan.
• If you aren’t able to port your policy, due to old age, or a past claim, do not get upset, and discontinue your policy, as even at the price you pay, you will definitely be better off than being without a health insurance cover, facing all the healthcare expenditure of your old age, on your own savings.
“Health is Wealth” is what we have learnt right from our schooling days. Every day millions of people try to maintain their good health, do work outs, eat healthy nutrients food and follow various diet regimes to stay fit & healthy. But the point is in order to preserve your wealth from the rainy days of ailments you need to shelter it. And the best possible way to do this is by taking a suitable medical insurance that will help you lead a happy and healthy life. Regardless of treatment expenses, everyone has a right to avail the quality healthcare, for which medical insurance plan comes into scenario.
While preserving your wealth is one reason to buy medical policies, another would be number of diseases and high treatment expenses associated with it that has stirred human mind to look for a good medical insurance cover. Many times financial issue in treatment compels people to go for a poor quality of healthcare. In India, there are several new health insurance companies entering into market with innovative and customized products and services. Team of experts in every company work in tandem with a vision to provide innovative healthcare solutions for their customers. They are devised looking into the needs of every section of society.
Medical insurance policies come along with add-ons that aid your medical health plans in many ways. Among various new add-ons people find top-up Medical insurance plans are gaining fame for their usability at low cost premiums. With rising medical expenses even your sufficient medical insurance plan doesn’t support you some times. Then this top-up medical insurance policy covers you from excess medical charges that incurs on your hospitalization. Top-Up Medical insurance policy comes with a threshold limit as deductibles which differ from insurer to insurer. You will have an option to finalize the limit for this top-up medical insurance plan. If you want to claim your medical policy the first half of the amount which is equal to your deductibles is to be paid by you and the remaining half will be paid by your insurance company. Although buying top-up medical insurance is not a serious issue but it’s better to have few checks before buying the plan.
Here is the list of few checks while buying top-up medical insurance plan:
Premiums on such policies are decided on the amount of sum assured you have registered and the sum of deductibles you can bear on your policy. The lower the deductibles the higher your premiums will be. So, you are advised if you could shed some more amounts from your pocket it could reduce your premiums.
You can decide on the amount to deduct from your sum assured. Your insurer will have a certain amount of maximum and minimum limit on your deductibles. Make sure your insurer will pay your deductibles in case of any emergency.
You need to provide most of your personal details, which includes your age, occupation number of dependents, etc. your medical insurance provider stores these details for further reference.
Your top-up medical insurance plan coverage comes with exclusions where your claim will be rejected if not adhered by the policy terms & conditions. Make sure to check your policy exclusions before signing up the policy to avoid any further problems.
Age and Medical tests
Checking up for your medical condition is mandatory before buying medical insurance plan. Your health policy premiums are very much decided on your medical conditions. On a whole, top-up medical insurance plans helps to rescue you when you’re in need. Their coverage plans and added benefits will allow you to use it till optimization.
Parents build a shield of protection around you when you’re young. They put all their hard work, heart and soul to nourish us and get the best possible amenities and lifestyle. Once we grow up and become successful in life it becomes our duty to take care of parents. Parents won’t demand much life but what they particular face during old age is the health issues which is a major concern. The best gift that you can ever gift your parents would be a health insurance plan purchase that will not only help them live stress free but also with pride in the society for the way you have been taking care of them.
Good health is like blessing for every human being. It is the only tool that paves way for happy life because healthy body nourishes healthy mind. An individual gets freedom to concentrate on various other aspects of life if he or she is free from any sort of health issues. However, no matter how health conscious they remain an old age person will be prone to health related issues. If not any major issues a mere low or high BP, pain in joints, week eyesight etc. will be common problems that they will face during this age. Therefore it becomes imperative for old age people to get themselves covered under the canopy of health insurance.
Many insurance companies have come up with various customized plans keeping in mind the ailing age of parents to help them live a stress free life. Such health insurance plan for parents is the provision to take care of this need. Under the shelter of insurance policy, your parents will dwell around with quality treatment even during the later years of life.
While buying health policy for parents just remember that it is not always the planned treatment that cause healthcare expenses but that can even happen due to unanticipated reasons. Unexpected incidents can generate the need of healthcare. Also there are chances of emergency cases that call for immediate action. So as to recover from illness or to curb its way from turning into a critical one, there is a need to take appropriate measures before time slips out of hand.
Today, medical policies are the best tools that can assure a helping hand while facing health related challenges. It gives financial coverage that unburdens the insured from the burden of healthcare expenses. This gives a huge mental relief allowing the individual to concentrate on healthcare needs that being occupied in the thoughts of treatment to be availed. With peace of mind, one can take wise decisions. Health insurance for parents is equally important, when they are traveling. So, if your parents are planning to have a trip either inside the country or abroad, their health should be insured.
Buy parent health insurance plan and show that you care for them. Inspite of you spending a bit of your income for parents they make a sheer effort in giving you some returns in the form of tax benefits, as per the section 80(D) of the Income Tax Act. So, even if you spent a penny for your parents today you will receive some goodies in returns tomorrow because ultimately parent’s heart only wishes to see their child prosper and benefit in every form.
Everybody at some point or the other needs to use the health care system. Unforeseen situations can arise at any time. You may never know when you might face an accident or any of your family member might fall sick and may need a doctor. By subscribing to health insurance plans you can secure your future and save your savings as this will cover all your medical expenses and give you access to the right medical care at the right time.
Health insurance plans can protect you and your family from the costs of medical treatments. The small expenses of routine checkups can quickly add up and the cost of treatment of major illness can be a nightmare. At any age and at any level of health, everybody needs to take care of themselves and stay healthy. For this reason, the health insurance companies have come with family floater insurance plans.
In this policy all the members of the family are secured. The policy holder only has to manage one single policy and his entire family including his wife, children and parents are secured under it. There is no trouble of subscribing to various different policies for different people.
With so many insurance policies and companies offering them to you in the market today, online broker agencies are available to help you distinguish among them and select the ideal one for you and your family. All you need to do is go online and select the best one for yourself.
Benefits of floater plan
A single protective umbrella adequately looks after the health needs of the whole household.
You do not have to remember so many dates of premium deposit or renewal individually as you will maintain only a single plan. So it offers you relief.
Young couples like the family health pack because it offers new-born and maternity coverage. However, these features do not add up immediately.
If the senior most member of your household expires, the plan will continue for the rest of the family providing all the features like before.
If you are looking for family health insurance, then you have already begun your journey on the right note. Family health plans combine the advantages of group insurance and individual plans. They are cheap, as there are more people accessing insurance. And it can be personalised as it caters to the health needs of just one family.
Family plans are often more lucrative and affordable than other plans. It would be much cheaper to get a family plan than to insure every member of the family individually. And since more people are a part of this package, the premium is reduced considerably and this makes family plans affordable.
Not just when compared to individual plan, but family health plans insurance can often be cheaper than the group insurance that is provided at work, even though you have to pay the entire premium from your pockets. And not just the price, family plans prove to be a better deal when you compare other criteria as well such as added advantages, prevention and wellness benefits, personalised healthcare services and the likes.
The kind of family plan that a person will choose will depend on two factors:
– The family budget for health insurance
– The individual medical needs of every member
A thorough knowledge of these two criteria will give an idea about the kind of plan one should opt for, the insurer he should choose and whether he should go for a private plan or a government aided policy.
When looking for a family health plan, one usually has two choices. He can either opt for an indemnity plan or can go with a managed health care plan.
An indemnity plan is one where a person has to pay for his medical expenses and then later on get it reimbursed from the insurance companies. Such a plan usually comes with a wide range of variety of doctors and healthcare service providers and can consult any doctor that he wants to.
Costly indemnity plans are now rapidly getting replaced by managed health care plans such as HMOs, PPOs and PoS. These plans have limited flexibility and there is a prescribed network of healthcare service providers that a beneficiary has to stick to. Consulting beyond the network will invite costlier premiums. However, these plans are cheap and they focus on providing primary and preventive health care.
Accessing family insurance is easy. You could either buy one yourself or you could buy one from work. Most employees provide family medical plans to their workers. And even if yours does not, you could convert you individual plan given at work to a family plan at a little extra charge.
The best place to look for family plans is to check on the internet. You need to go through all the plans carefully to check of if it fulfils all the requirements of every member and the easiest way to do so is going online. Apart from that, comparing quotes online is faster and hassle-free.
Family health insurance is the best way to access medical coverage in the USA. It is cheap, customised and comes with a lot of advantages.
Want to insure your family’s health but don’t know where to start? Read all about choosing the best family floater plans and how they are the most economical option for you.
The best way to keep your family safe from any financial burden arising out of hospitalisation and illnesses is to buy a health insurance plan. The family floater plans are health insurance plans which will cover you and your family together on shared basis and with no individual limit for each member covered under the floater.
The points given below will help you understand more about a family floater and the ways which you can choose the best plan.
What is family floater plan and how is it different?
Unlike, individual health insurance plan which covers individual members of the family, a family floater plan covers entire family in a single plan. It works with the assumption that all the members of the family will not fall ill at the same time, or will have the same hospital expenses.
Thus, if any one of the members falls ill, the coverage up to sum insured (amount of cover, or maximum limit of the hospital costs to be reimbursed by the insurance company that you opt for your family) is available while the other healthy members are also covered. Thus, your entire family will have wider coverage with hospitalised members being supported by the non-hospitalised one. This makes the plan more beneficial for family floater insurance policy.
Normally, under a family floater the proposer, proposer’s spouse, a maximum of 2 to 4 dependent children (children financially dependent on the proposer), proposer’s parents, etc. are covered. However, there are a few special plans which offer extended coverage to other family members too.
Example: Say, Mr. Sharma opts for a normal family floater plan for sum insured or coverage amount of INR 3,00,000, then health expenses of Mr. Sharma, 2 to 4 of his dependent children and Mrs. Sharma or any one of Mr. Sharma’s parents would be covered under the same policy up to a maximum of 3,00,000. So Mr. Sharma’s wife is hospitalized and runs up a bill of INR 1,00,000, the family floater plan will be used up to 1,00,000. For the remaining year Mrs. Sharma and the others can still get covered in case they get hospitalized up to INR 2,00,000.
We have stepped into the year 2016 with a bunch of new resolutions. Keeping the ever-rising medical costs in mind, one of your many resolutions ought to be safeguarding health of your family members and yourself. To acquire a financial protection from medical expenses you need to avail health insurance plan online. But, how will you understand which type of medical insurance cover is ideal for you and which health insurance plan will meet your needs perfectly? To ease your quest to find the best health insurance plan in 2016 in India we have come up with a list of 5 best health insurance policies in all categories.
Find the right type of medical insurance that serves you best
The very first thing you need to do is understand what type of health insurance plan you need. Health covers can be classified in four categories. A health insurance provider in India offers the following type of health covers.
Individual health insurance plan: The individual mediclaim policy covers only the policyholder. The insured person is the only one to enjoy the benefits of the coverage on offer by the individual medical insurance plan.
Family floater health insurance plan: A family health plan provides coverage to multiple members of one family. You can pay just one premium for a specific sum assured in a year and protect the health of your whole family.
Senior citizen health insurance policy: Senior citizen health insurance plans are essential for those who have already retired and live on savings and pension. Any medical emergency can make a dent on their savings. So, a comprehensive senior citizen mediclaim insurance policy is a must for them.
Critical illness health insurance policy: Critical illness insurance cover protects you against severe illnesses like cancer, stroke. The policy covers massive medical costs and also provides lump sum compensation.
You have to choose any one the above-mentioned categories. Regardless of which type of health insurance plan you opt for here is a list of top health insurance policies from all categories. Let’s start with individual medical insurance policies.
Individual Health Insurance Plan:
If you think an individual health plan will serve your purpose best, you can select any health cover from the table below. The table reflects best health insurance in India in terms of premium and incurred claim ratio. The premiums are for a 35 year old person who wants coverage of Rs. 5 lacs sum insured. And, incurred claim ratio is the ratio of claims incurred by insurance company to the premiums earned by insurance company.
Family Floater Health Insurance Plans:
While an individual Mediclaim policy covers only the insured, a family floater health insurance plan offers coverage to the entire family. So, if you have a family to look after your best bet is a family floater health insurance plan. By availing a family floater health policy online you don’t have to buy individual Mediclaim policies for every member of your family which will cost more. The premiums are determined for a family consisting of a couple and two children and the age of the most senior member is 35 years old. The sum insured amount for the whole family is Rs.10 lacs.
In essence, when it comes to protecting your and your family’s health you can avail any of the above-mentioned health insurance plans online for complete protection and peace of mind.
In this blog, I have discussed the best Mediclaim insurance online plans that fared well in 2015 and are expected to rock the year of 2016 as well. The compilation of the best health insurance plans in India will hopefully serve you as a useful guide so that you can select a good health insurance company and choose the best health insurance plans in India.
A family floater health insurance is one of the best options when it comes to safeguarding the health of your loved ones. Since it is single policy offering family benefit, it relives you from the task of maintaining and keeping track of several insurance policies & offers affordability also.
Best health insurance in india usually covers the individual, spouse and children. However, some insurance providers do have provision to cover dependent parents, siblings and parents-in-law. Hence this kind of policies are becoming more popular because of the advantages it offer.
Considering the low probability of the entire family getting hospitalised in a single year. Therefore, experts argue, family floaters provide sufficient coverage for the entire family, particularly for the young and the healthy ones.
However, the clincher for family floaters – better coverage at lower premiums – would be turned on its head if one of the family members has an adverse health history. For example, if a family member is suffering from cardiac problem, the likelihood of claims being made is quite high and so is the possibility of a higher claim amount. Consequently, other family members would be left with little or no cover for the rest of the year.
“If one person exhausts the limit, everyone else in the policy is exposed,” points out Antony Jacob, CEO of Apollo Munich. “Where the risk profile of one of the members is high, a separate cover is advisable for him or her. Or, you can also look at a floater of more than 6-8 lakh. A cost-benefit analysis will have to be done by each family to arrive at the right combination.”
The middle path
To get around the exhaustion obstacle, some companies offer family floaters with a host of flexible options. Companies like L&T Insurance, Apollo Munich, Star Health and Max Bupa have designed products that reinstate the sum assured in individual as well as family floater policies, subject to conditions.
For instance, L&T Insurance’s product promises replenishment of cover in case of accidents and double the sum assured for critical illnesses. Apollo Munich and Star Health restore the cover if the second claim pertains to an ailment unrelated to the first one, or is made by another family member. Max Bupa’s family product provides a combination of individual and floater limits.
Choosing a floater
Keep healthcare inflation in mind while buying and enhancing your cover every year. Try to increase it by 2 lakh at least once in two years. “The city you reside in is also an important factor as the healthcare costs are not the same everywhere. A 5-lakh floater may hold good in say Madurai but will fall short in Mumbai,” says Jacob.
Points to remember
Many individuals often express doubts about the policy’s continuity upon the proposer’s death.
Such reservations, however, are totally unfounded. “Any other eligible floater member can write to the insurer, seeking to be the new proposer and the cover will continue,” explains Chopra. Another form of exit could be the insured children crossing the upper age limit prescribed for them.
Here, the premiums for other policyholders come down. The exiting policyholder should opt for an individual cover immediately, be it with the same insurer or a different one. Given the low-risk profile of young individuals, insurers will not hesitate to issue policies at cheaper premiums.
This apart, if you are dissatisfied with your insurer’s services, your family has an option to switch to another insurer, collectively or independently. Thanks to portability, you can retain your continuity benefits and need not wait for four years to get the pre-existing diseases cover.
However, understand the nitty-gritties of the process, particularly if you are migrating from individual covers to a family floater. That is, if you and your spouse have standalone covers of 2 lakh each and you wish to shift to a family floater of 5 lakh, the continuity benefits will be capped at 2 lakh per person.