Author: Ankita Sejpal

The adage goes ‘Health’ is ‘Wealth’, nothing else can describe it better. Among many other financial planning decisions you embark on, one of the most important decisions is hedging your health risk. If you have a family with dependent members, then it becomes pertinent that you ensure that all the members in your family are adequately covered. 

Why is family health insurance important?

There have been instances in the recent past, during the pandemic, where a single illness in the family has created financial setbacks. The past two years have been an eye-opener wherein it became apparent that the group insurance cover offered by the company may not suffice. Many individuals had to dip into their savings/investments to foot the hospital bills. This can be a major setback for them from the perspective of achieving their financial goals. There is enough data indicating that critical illnesses such as cancer can push families into abject poverty. 

These are reasons enough to emphasise the importance of health insurance, however, you must evaluate certain terms and conditions before you avail of the best family health insurance plan.

Read more about Family Health Insurance Plans 

Opt for Group Insurance Cover

If you can add your family members to the group insurance cover offered by your company, then it makes sense to avail of this option first. This is for the simple reason that the premiums of group insurance cover are relatively competent as compared to individual health insurance plans. Despite having a group insurance plan, you will have to evaluate your requirement and ensure that the group insurance health plan offers adequate coverage. In most cases, the group insurance cover falls short, as the coverage is too basic, with restrictions and sub-limits. From a family coverage perspective, you may have specific requirements which may not be covered under such broad-based standardised plans.

Hence, the evaluation of the gap is vital, you should avail of an additional insurance plan separately to ensure that you have covered all your requirements. In fact, to avail health coverage for the family, it is ideal that one evaluates family floater plans.

Family Floater Plans

These plans cover your immediate family members (children and spouse) with a single annual payment. These plans allow for multiple hospitalisation claims during the same year, provided the claim is well within the sum insured limit.

The premiums paid towards health insurance policy qualify for deduction under section 80D of the Income Tax Act up to Rs. 25,000 every year. The family floater plans offer coverage for all the members of the family at very competent premium rates.

Using a family floater option can help you create a customised plan which takes care of the specific needs of each family member.

Here are the top 5 considerations to evaluate family floater plans:

1. Premiums and tenure

   This is by far the most basic aspect for consideration for any health insurance plan. For a family floater plan too, this remains the most basic consideration, the family floater premium rates are relatively lower than individual plans for each member of the family. This is because every family floater plan has a small pool of people with varying degrees of risk factors and from an insurance company’s perspective, a diversified risk pool reduces the risk of frequent and huge claims. It is advised that you conduct a comparison across products to choose the plan that offers the longest tenure and competent premium rates. 

2. The extent of coverage

   Another important aspect is to evaluate the extent of coverage offered for the sum insured. This essentially means that the inclusions and more importantly, the exclusions of the plan should be studied in detail.

   Compare it across other plans which offer a similar sum insured coverage. The idea is to choose the plan which offers a wide range of inclusions and minimal exclusions. It is also pertinent to ensure that there are no loose ends when the exclusions are being listed. Also, check for the additional coverage that you can opt for such as maternity benefits, pre-existing disease coverage, etc.

   If things seem hazy, always reach out to the insurance company for clarity and seek documents which support their claim of coverage or exclusion. This can be handy for future reference. 

3. Hospital list

   Most health insurance plans these days offer cashless coverage, this is applicable only if the treatment is sought in one of the network hospitals. If not, the insured has to undergo the rigmarole of reimbursements.

   It is practical to ascertain beforehand and ensure that the network hospital list covers those hospitals that are most accessible to you and provide world-class treatment/service. 

4. Limits, co-payment, deductible and waiting period

   Many health insurance companies protect themselves by including limits and sub-limits. You must choose a plan with minimal limits and sub-limits, you may be required to pay a higher premium to ensure that the limits and sub-limits are minimal.

   This will provide you with a stress-free situation in case of hospitalisation and ensure that you get the best treatment irrespective of the cost.

   Check for co-payment clauses which could be applicable for senior citizens included in your family floater plan and opt for the one with the least amount of co-payment. Similarly, deductibles could lower the premium, but they might increase your overall outflow in case of a claim.

   Also, check for waiting periods in your health insurance plan, especially if any of the members have any pre-existing ailment at the time of opting for the health insurance plan. This is because you would not be able to raise a claim during that period for the specific ailment. 

5. Add-ons and customisation

   Often, you or your family members may have specific medical conditions, and this may require a plan which is tailored to include the requirements. This could be through add-ons or special customisation. Check with your insurer if there is a clause which will specifically cover the situation/condition at hand. 

By going over each of the above pointers, you will be able to choose the right family floater health insurance plan. This will ensure that you experience the least financial stress during health emergencies.

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

Yoga originated in India thousands of years ago when the learned sages and Gurus preached their knowledge of harmonising the body and soul. Today, Yoga has gained international recognition and is celebrated, every year, on the 21st of June. This year too the world International Yoga Day is around the corner and would be celebrated worldwide. 

Yoga has been recognised internationally for a very simple fact, the health benefits that it offers. Yoga is a complete exercise that can attune your body and mind and help you stay healthy and fit. Furthermore, Yoga also helps in reducing your health insurance cost. 

Surprised? Don’t be! Though indirectly but practising Yoga sure can help you lower your health insurance cost. Here are five ways how –

1. Lower premiums when buying the policy

When you practice Yoga regularly, you can stay fit and healthy. This fitness determines the premium calculation when you buy a health insurance policy. If at the time of buying the health insurance policy, you suffer from a medical complication, the premium of the policy would be increased to bear the increased health risk. However, if you are healthy, you can avoid this loading and enjoy lower premiums.

Infact, some insurance companies also offer discounted premiums for healthy individuals. You can avail of such premiums when you practice Yoga and are healthy.

2. Enjoy no claim bonus

No claim bonus is a reward that health insurance plans offer if you don’t make claims in the previous policy years. When you practice Yoga, you can stay fit and avoid possible lifestyle illnesses and complications. This reduces the probability of claim allowing you the no claim bonus in the policy.

The no-claim bonus can either be given as a free increase in the coverage amount or as a premium discount on renewals. In either case, your health insurance cost goes down. If the sum insured is increased, you enjoy higher coverage at lower rates. Alternatively, you can reduce the premium outgo if there is a renewal discount offered by the insurer.

3. Get wellness discounts

Many health insurance plans offer wellness benefits and discounts when you renew the coverage. If you lead a healthy lifestyle, such plans allow a discount on the renewal premium. Yoga can help you lead this healthy lifestyle and opt for the available discounts. And where there are discounts, the costs ultimately go down.

4. Avoid claim-based loading

Some insurance companies load the renewal premium if you make a claim on your policy in the previous year. This enhances the premium outgo making the plan dearer. However, with Yoga, you can stay healthy and avoid claims. When there would be no claims, there would be no claim-based loading allowing you to keep your health insurance costs affordable.

5. Get the best deal

Lastly, when you practice Yoga and stay fit you get a variety of health plans to choose from. You can compare the coverage across multiple policies and choose a plan that offers the best coverage at the most affordable rates.

There is a reason Yoga is acknowledged worldwide to be a way of healthy living. It improves your body functions, and its systems and helps you stay fit and healthy. In fact, if practised regularly, you can also bid adieu to common lifestyle illnesses. If you also add meditation to your routine, you can improve your mental health too.

So, this World Yoga Day, add Yoga to your lifestyle and witness a positive change in your health. Use this chance to get low-cost health insurance plans which offer a comprehensive scope of protection. Maximise the full potential of this age-old practice and benefit physically, physiologically, mentally and financially.

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.