Month: April 2022

The importance of having your personal health insurance is widely known, especially after the pandemic, and a good percentage of millennials have considered opting for their own health insurance, it is still widely considered a “Tax-Saving Instrument”. With the large choices available, it is inevitable for anyone to get lost amidst the chaos in the industry. This is where making a good decision is noteworthy. Traditional wisdom says “a work begun is half done” and this is where taking the action of actually opting for the health insurance, instead of procrastinating about it forever is important.

The Government health schemes cater to a specific segment of the society. For others, it is important to have your personal health insurance plan so that it can cover your hospitalisation expenses in a medical eventuality. Medical expenses can neither be postponed nor avoided. Hence planning for the same before the emergency arrives is prudent. This is where Health Insurance comes into play.

Thus, you need to activate your health insurance plan NOW, to battle out medical emergencies without worrying about your financial health. 

Importance of activating your health insurance plan NOW:

Here are some reasons to help you understand the very importance of having an active health insurance plan:

1. Medical costs are steadily increasing

   This one is a fact. Medical inflation is higher than the often-quoted figure of 8-10% and is as high as 15%. (Source: Business Today)

   This is due to the rise in the cost of medicines, equipment and advancements in treatment. Yes, a healthier lifestyle reduces your risks of falling ill, but it does not completely eliminate the same. Hence to combat the rising costs of treatment, health insurance becomes inevitable.

2. Illnesses and diseases are on the rise

   According to a 2020 study (Source: Clinical Trials Arena, Sep 2021), India was found to be one of the countries with the highest disease burdens. It forecasted 75.26 million cases of type 2 diabetes and 26,000 cases of endometrial cancer in 2021 and these numbers are expected to increase to 91.72 million and 32,000 cases by 2028.

   Diseases are increasing and if they require medical assistance, you need an active health plan to cover the costs.

3. You can get comprehensive coverage for your whole family

   Health insurance plans offer comprehensive coverage benefits that are customisable too. You get coverage for most of your medical costs thereby getting financial security. Moreover, by choosing a family floater policy, all your family members can be insured so that their medical needs are also met by the policy.

4. There are tax benefits too

   Lastly, having an active health insurance policy aids in tax savings too. The premium paid for the policy qualifies as a deduction under Section 80D of the Income Tax Act, 1961. You can claim a deduction of up to Rs.25,000 if you are below 60 and up to Rs.50,000 if you are aged 60 and above.

   Moreover, if you also insure your parents and pay their premiums, you can claim an additional deduction of Rs.25,000 if your parents are below 60 or Rs.50,000 if they are senior citizens.

   So, with a maximum deduction of Rs.1 lakh, you can save up to Rs.30,000 in taxes if you fall in the highest tax bracket of 30%. 

Health insurance plans also allow lifelong renewals so that once bought, you can enjoy the coverage lifelong if you renew the policy regularly. Thus, instead of contemplating which is the best health insurance plan that would suit your and your family’s requirements perfectly, it is a wise idea to opt for a comprehensive plan with benefits that you consider important at this point in your life; and later if the requirements change or other plans come up with more benefits, you can always port your health plan without disrupting the continuity benefits.

So, it’s time to rise and shine and start your health insurance plan today and secure your finances against medical emergencies. Remember, the early bird gets the worm. So “Active Ho Jao” with your health plan.

The biggest reason for delaying your health insurance plan is procrastination! Most people keep “thinking” about the best health insurance without actually taking an action. Once the basic purpose of the health insurance plan is established, it’s much easier to choose the plan based on your needs.

So, here are the top 5 questions which you need to determine which would help you to opt for the best health insurance plan for yourself and your family.

1. How much health insurance should you buy?

   Health insurance plans allow coverage from Rs.50,000 to Rs.2 crores or higher. As such, choosing the right coverage amount might stump many. Ideally, the choice of the sum insured should depend on your lifestyle, size of the family, estimated hospitalisation and treatment costs, age, etc. However, as a ready reckoner, there is a thumb rule for determining the optimal coverage amount. This thumb rule is as follows –

   Optimal coverage = 50% of your annual income + hospitalisation costs incurred over the past 3 years

   Many experts also recommend 50% of the income to be the starting point. So, if you earn Rs.20 lakhs a year, you need coverage of at least Rs.10 lakhs. Higher coverage is better as you can get sufficiently covered against rising medical costs.

2. How to buy the policy?

   There are more than a dozen health insurance providers in India. As such, you might be spoilt for choice when it comes to finding the right plan and buying it. The ideal way to buy a health plan is to compare and then buy. There are leading online platforms that allow you to compare the health plans of leading companies. Assess your coverage needs and then compare the plans offering the desired coverage. Compare the coverage features vis-à-vis the premium and choose a suitable plan.

   As far as buying is concerned, the online mode allows you to buy the policy instantly, without hassles. So, you can easily compare on https://www.turtlemint.com/health-insurance/ and buy the policy online.

3. Would the premium be affordable?

   Many individuals are concerned with the affordability of health insurance premiums. Truth be told, the premiums are affordable. You can also avail of different discounts that insurance companies offer and reduce the premium further.

   Furthermore, to make the premium even more affordable, insurers allow you the facility of instalment payments. You can pay the premium quarterly, monthly or half-yearly so that it becomes affordable in your pockets. So, avoiding a health plan by simply worrying about its affordability is no longer an excuse to skimp on health insurance coverage.

4. What benefits to choose while opting for your health insurance plan?

   Health insurance plans can have a variety of benefits for you to choose from. This is the problem of abundance and you might get confused. Choose your plan according to your needs.

   For example, if you suffer from any illness before you buy the policy, such an illness would be called a pre-existing illness. The illness would usually be covered under the policy but after a waiting period. Health insurance companies usually impose a waiting period ranging from 12 months to 48 months after which your pre-existing illnesses get covered.

   So, if you suffer from any illness, you can opt for a plan with a low waiting period so that you can avail of the coverage quicker.

   Along with the regular hospitalisation benefits, here is a list of benefits that you can opt for:

   1. Must-Have benefits:
      1. Good coverage of pre-and post-hospitalisation expenses
      2. Maternity coverage for a young family
      3. Low waiting period for any pre-existing ailments
      4. Day-care coverage
      5. Annual health check-ups
      6. No copay, especially zonal
      7. Home care treatment or domiciliary cover
      8. AYUSH (Ayurvedic, Homeopathy, Unani, Siddha treatment coverage) benefit
   2. Good-to-have benefits:
   1. No room rent capping where there are no sub-limits for claim
   2. Restoration benefit, where the sum assured would be restored in case of claim
   3. Hospital cash benefit
   4. Critical illness benefit
5. Would your claims be settled?

   Wondering if your health insurance claims would be settled or not? If you are, you can relax. Health insurers have simplified their claim processes so that you can get your claims settled quickly.

   You just have to follow some claim-related steps and your claims get settled easily. You can also seek expert help for claim settlement for a smoother experience. So, if you make a valid claim on your policy, your claim would be settled else the experts at Turtlemint would assist you with the same.

Once you have answers to these 5 questions, you will have an idea of which type of health insurance plan you need. Then all you need to do is opt for the plan at your earliest without contemplating further. In case you come across a better plan later, you can always choose to port it while continuing the benefits. Thus, it is wise to opt for a comprehensive plan so that your out-of-pocket expenses are minimised and you can avail all-round protection.

No one really “plans” to fall ill, no one really “planned” the pandemic, but it happened! This was when we witnessed multiple families falling ill requiring hospitalisation together. Times like this make us introspect the actual amount of health insurance coverage one needs. With high medical inflation rising the cost of treatment along with the rise of lifestyle ailments in India, insurance is not even an option anymore. Before upgrading your phone or any other electronic accessories, you need to rethink your health insurance coverage and opt for a high coverage before you may need it!

According to the GOQii Fit India Report 2020, 62% of Indians fall in the high-risk or borderline high-risk category as far as fitness is concerned. Lifestyle diseases contribute a large part of this with hypertension, diabetes and thyroid where women happen to be unhealthier than men in general. Also, young adults fall prey to lifestyle ailments due to fast food and an unhealthier lifestyle than their parents!

Thus, instead of thinking about your health insurance plan, it is time to opt for it at your earliest, preferably before you turn 40 or have any lifelong medical conditions so that when you need it the most, your policy has surpassed the waiting periods and ready to process a claim!

Remember: Health expenses can neither be avoided nor postponed!

Thus, here are the top 10 reasons why you need an ‘active’ health insurance plan:

1. Illnesses are unpredictable 

   Ok, so you are in the prime of your health. But can you predict illnesses? In today’s stressful living, illnesses don’t see age. Individuals develop illnesses even in their 30s. Such illnesses might require medical attention and if they do, a health plan helps in covering the costs.

   According to GOQii India Fit Report (Source: BioSpectrum India, March 2021), more than 50% of teens and young adults are unfit in India and thus susceptible to illnesses. So delaying your insurance may not be a wise idea!

2. Accidents don’t announce themselves

   Even if you are illness-free in your 20s and 30s, you don’t have any control over accidental injuries. Road traffic accidents, a fall or even a pandemic can land you in the hospital with considerable medical bills.

3. Medical expenses are on the rise

   This one is no mystery. A simple doctor’s visit can cost you thousands. Imagine hospitalisation!

   Last year, in May and June 2021, health inflation was recorded at 8.4% and 7.7% (Source: Hindu, July 2021) respectively compared to 3.8% in December 2019. If the inflation can double up within 6 months, imagine how much it can grow over the years.

   In the face of such rising costs, a health plan becomes a must to afford quality healthcare.

4. Your family needs you

   You might be healthy and free from illnesses but what about your family members? If anyone falls ill and requires medical assistance, you would incur medical costs.

   If your family includes dependent parents, the chances of medical emergencies increase. A family floater health plan, thus, also proves relevant for covering the medical costs of your family members.

5. For maximum coverage

   You benefit when you invest in a health plan at a younger age. Since at younger age you might be healthy, you can avail of maximum coverage under the plan that you choose. The insurer would not impose coverage restrictions when you buy young.

6. The waiting periods

   Every health plan has a waiting period after which pre-existing illnesses are covered. During this waiting period, claims pertaining to such illnesses become your out-of-pocket expenses, which is almost 70% (Source: Economic Times, Jan 2022) of the total expenditure on healthcare in India. 

   When you buy health insurance young, you are relatively healthy. As such, you can wait out the waiting period easily. Once the waiting period is over, you can enjoy comprehensive coverage.

7. You have other goals too!

   In the absence of a health plan, a medical emergency poses a threat to your savings, savings that you might have created for other financial goals. As the savings are drained out in paying the hospital bills, the other goals suffer.

   If you want to create a secured corpus for the other financial goals that you have, invest in a health plan, early on, so that your savings are protected and you do not need to dip into your savings for your medical expenses.

8. Wider plan options

   When you are young, every insurer is ready to offer you a comprehensive scope of protection. As such, you have wider plan options at your disposal. As you age, the plan options start narrowing down, a scenario that is better avoided.

9. The benefit of no claim bonus

   If you do not make a claim in your health insurance policy, you are allowed a no claim bonus. Most plans offer a cumulative bonus which increases the sum insured on a cumulative basis after each claim-free year.

   Buying young can help you accumulate the no claim bonus and increase your coverage, that too free of cost!

10. The tax advantage

    Lastly, let’s not forget the tax angle. Investing in health insurance earns you a deduction under Section 80D.

    You can claim a deduction of up to INR 25,000 through health insurance premiums. Moreover, if you also pay for your parents’ cover, you earn an additional deduction of INR 25,000 (INR 50,000 if they are senior citizens).

    These deductions help in lowering your taxable income which, in turn, lowers your tax liability. A reduced tax liability = increased savings. Wouldn’t you want that?

It’s time to take a decision and opt for adequate health insurance coverage. There is no point in delaying. Invest in a health plan before turning 40 so that you can enjoy the aforementioned benefits. Moreover, with health insurance comes financial security which gives you peace of mind and who doesn’t want that!

Chris Burke said, ‘It’s not our disabilities, it’s our abilities that count’. A wonderful line that shows that being differently-abled is not a disability. 

According to WHO’s estimates, there are about 600 million individuals across the world who suffer from one or the other form of disability. In India, as per the last Census conducted in 2011(Updated in 2016), about 26.8 million people or 2.21% of the Indian population suffered one or the other form of disability. (Source:NHFDC).

 Specially abled individuals might face different challenges in life. Health insurance is not one of them. With the latest developments in the health insurance segment and insurers offering more inclusive plans, there are different coverage options for the differently-abled. Before we explore the available options, let’s, first, understand the different types of disabilities that individuals might suffer from.

Types of disabilities 

1. Congenital disabilities

   Congenital disabilities are those that persist in an individual from birth. Down’s syndrome, spina bifida, and Fragile X syndrome are some examples.

2. Mental disabilities

   Disabilities that pertain to the brain and psychological development of an individual are called mental disabilities. Some such disabilities might be present from birth while some might develop at a later stage in life. Mental impairments, bipolar disorder, etc. are some examples of mental disabilities.

3. Accidental disabilities 

   Accidental disabilities are those which occur due to an accidental injury. Loss of limbs, loss of eyesight, loss of hearing, etc. are some common examples. Accidental disabilities can be partial (loss of sight in one eye, loss of one hand or one foot, etc.) or total (loss of both eyes, both legs, both hands, etc.)

Health insurance options for the differently-abled

When it comes to health insurance schemes, there are two options that you can explore. These are as follows –

1. Health insurance schemes offered by the Government

   The Government offers two distinct types of health insurance schemes for individuals suffering from disabilities. These schemes are as follows –

• Nirmaya Health Insurance Scheme

  This scheme covers individuals suffering from autism, cerebral palsy, and other disabilities covered under the National Trust Act, 1999. It is administered by the National Trust. The coverage is allowed up to Rs.1 lakh and does not require any pre-entrance health check-ups. The coverage benefits include the following –

  • Hospitalisation expenses
  • OPD treatments
  • Complications of an ongoing therapy
  • Alternative medicine cover
  • Transportation costs

  The premiums are extremely affordable at Rs.250 for BPL (Below Poverty Line) families, Rs.500 for non-BPL families and free coverage for individuals enrolling with a legal guardian. 

• Swavlamban Health Insurance Scheme

  The Swavlamban scheme was launched by the Ministry of Social Justice and the Department of Empowerment of Persons with Disabilities in association with the New India Assurance Company Limited. The scheme covers individuals suffering from loco-motor disabilities, blindness, low vision, mental retardation, etc. Some salient features of the scheme are as follows –

  • A flat premium of Rs.375 for coverage of Rs.2 lakhs on a family floater basis
  • The family floater plan covers one adult and up to 3 children any of whom can be differently-abled
  • The age limit is 0 to 65 years
  • Pre and post-hospitalisation expenses, OPD treatments, inpatient treatments, etc. are covered 
  • No pre-entrance health check-ups are needed to buy the policy
2. Health insurance schemes offered by health insurance companies 

   Besides the Government-backed health insurance plans, differently-abled individuals can also buy a policy from independent health insurers operating in the market. Many insurance companies allow coverage for the differently-abled. However, when availing of coverage from health insurers, the following points should be kept in mind – 

   • Not all insurance companies allow coverage for the differently-abled. You would have to find an insurer that specifically allows such coverage
   • Mental and congenital disabilities are usually excluded by most insurers allowing coverage for the disabled. However, many new-age insurers are extending coverage for such individuals, albeit with coverage restrictions on the disability
   • Even though you can get the policy, there might be permanent or temporary exclusions for the disability. Permanent exclusions mean that coverage would not be granted throughout the policy tenure. Temporary exclusions, however, might restrict coverage for a short term after which the coverage might be allowed
   • You would have to disclose the disability and its severity when buying the policy. Complete transparency is needed to avoid claim rejection
   • The premiums might be higher and the sum insured might be restricted
   • The issuance of the policy would depend on the severity of the disablement, the capacity to pay the premium and the insured’s age
   • A disability certificate is an important document that is needed to avail of coverage 

The bottom line

Given the increasing medical expenses, a health insurance policy becomes a must in today’s age. So, even if you are differently-abled, ensure that you are covered under a suitable health insurance scheme, whether offered by the Government or by health insurers. Check out the companies that allow health insurance coverage for the differently-abled and then buy comprehensive coverage so that medical emergencies do not blow a hole in your pockets.