Why health insurance is essential?

Importance of Health Insurance

According to recent studies, healthcare costs have been rising at more than 20 per cent on an annualized basis. Also, out-of-the-pocket spending continues to be around 75 per cent of the total medical expenses. Given this increasing cost of medical care and treatment, it becomes essential that you have adequate health insurance cover to reduce the risk of financial difficulties in the event of a major illness or hospitalization. Even the government is getting into the act  to reduce the exorbitant out-of-pocket spending, hence it has been promoting low-cost health care plans.
COVERAGE

A health insurance policy covers the following basic costs in case of hospitalization due to any accidents/ diseases which doesn't form a part of the permanent exclusions of the policy

1. Room, boarding expenses as provided by the hospital/ nursing home.
2. Nursing expenses
3. Surgeon, aneasthetist, medical practitioner, consultants, specialist fees
4. Operation theatre charges, surgical appliance, medical and drugs, chemotherapy, radiotherapy and similar expenses.

EXCLUSIONS

The exclusions on a health insurance plan vary marginally company to company. What one should pay special attention to is whether pre-existing diseases or treatment for common but expensive treatments, such as cataract or hernia are covered.
The typical expenses that are not covered by a general health insurance policy are:

• Any disease/injury during first 30 days of commencement of policy (except accidental injury)
• Permanent exclusions could comprise of the following illnesses:
• Vaccination, inoculation, change of life, cosmetic or aesthetic treatment, plastic surgery unless necessitated due to accident or as a part of any illness
• Dental treatment or surgery of any kind unless requiring hospitalization
• Cost of spectacles contact lenses and hearing aids
• Convalescence, general debility, "run-down" condition, sterility, venereal disease, intentional self-injury, use of drugs and intoxicants
• Hospital / nursing home charges not forming part of any treatment
• Nuclear perils and war group of perils
• Naturopathy or non-allopathic treatment
• Any internal congenital illness
• Pregnancy and childbirth related diseases
• Expenses arising from HIV or AIDS and related diseases
• Use or misuse of liquor, intoxicating substances or drugs as well as intentional self injury
• War, riots, strike, terrorism acts, nuclear weapon induced treatment.

DOES AGE EFFECTS HEALTH INSURANCE PLANS AND PREMIUMS
Your age definitely affects your insurance plan in terms of coverage as well as cost. The older you are, the costlier your health insurance premiums.
As you grow older, your body becomes increasingly prone to illnesses, disorders, and malaise - hence the increased insurance premium costs.

TAX BENEFITS ON HEALTH INSURANCE
Premiums paid up to Rs. 15,000 per annul under the health insurance plan for self, spouse, two dependent children are exempt from tax under section 80 D of the Income Tax Act. Moreover you can also claim deduction up to Rs. 15,000 for premium paid towards dependent parents and in case your parents are senior citizen, you can claim a deduction of Rs. 20,000.

Source: http://www.apnapaisa.com

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Health Insurance: Things must know

Health Insurance

There are certain things that every one must know before opting a health insurance policy. This article will cover basic information and points to remember, before singing health insurance coverage and policy agreement.

Things to find out about Mediclaim Policies

Renew-ability ?? Take policies that are renewable till your life time. After all if the policy does not get renewed beyond a certain age you will find it impossible to get a fresh policy on reaching that age. So go for policies that are renewable till lifetime.
   
Sub-limits  - Ignore policies that have a room rent sub-limit as it can seriously impact the amount that you get paid for every hospitalization.
   
Disease specific amount Sub-limits - Be aware that most policies have specific sub-limits for treatments such as cataract, knee or hip replacement etc.
   
Specific Expenses Sub-limits - Apart from room rent sub-limit covered above (avoid policies that have room rent sub limit) and please be aware that some policies also have expense sub-limits on items such as medicines and doctors?? fees.

Waiting periods - Be aware that most mediclaim policies will not pay hospitalization expenses for any pre-existing disease for a period of between 1-4 years. The exclusion will also apply for any hospitalization due to a disease that was a consequence of the pre-existing disease.

Co-payments - Be aware that the policy can require you to pay a portion of the ??eligible?? expenditure from your side. This is called co-payment in insurance parlance. The co-payment is normally conditional such as after reaching a certain age or for hospitalization expenses incurred for a pre-existing disease or for hospitalisation expenses incurred outside the preferred network of the insurance company.
    
Type of rooms - Also there are some policies will restrict the type of room (normally twin sharing room) that you can get yourself admitted to for the purpose of getting treatment. If you choose a higher category room there could probably be a co-payment imposed or the expenses would be reimbursed based on what you would have incurred if you had stayed in a twin sharing room. The second type of conditions can seriously curtail the amount of claim that you can make and you should avoid policies that have such conditions.
   

Which Zone can I be treated in?

Some policies will restrict the geographical parts of India that you can be treated in. If you choose to get treated in another part of India that has a higher premium there is normally a co-payment that is imposed.
   

Things you should not worry about

Medical examination before the policy is issued
   
This is in fact good for you. Coupled with complete disclosure from your side this will ensure that you have the least problems at the time of making a claim. All insurance companies will reimburse 50% of the medical examination cost if they agree to issue the policy to you.

Coverage of Pregnancy
   
Only a few policies cover this and that too after a waiting period of 4-6 years after taking the policy. The amount of expenditure covered is also limited to 15-50 thousand depending on the type of delivery.
   

Things that you should definitely do

Make complete disclosures including any history of past diseases or treatment. It is better to have a more expensive policy or even not to have a policy rather than get a policy by hiding facts which will make the policy useless when a claim arises.

Read Brochure of the policy carefully before signing on the dotted line.
Check out all the things that are listed above.

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Health Insurance: Different types of coverage

Health Insurance

This is one insurance policy where only the most fortunate person will not make a claim during his life time. Most of us will, unfortunately, be required to be hospitalized some time or the other and will need a health insurance policy to take care of the hospitalization expenses.

Which one and what is the difference?

1) The most common policy is the Hospitalization expenses reimbursement policy or "mediclaim" policy as it is commonly known. This will reimburse "eligible" expenses incurred while hospitalized for treatment of any illness or disease or due to an accident. The policy normally does not cover expenses incurred outside the hospital even if they are quite high such as expenses for tests, doctor's visits while not hospitalized or medicines during that period unless it leads to hospitalization in 30-90 days or is a result of hospitalization in the prior 30-90 days. Expenses on elective treatments such as cosmetic surgery, obesity, etc. are also not covered. There is a long list of other permanent exclusions but in the interest of simplicity they are not being given here.

2) There are policies that pay a lump sum if you contract a serious illness/disease such as Cancer, stroke, organ failure, etc. This amount is payable when the condition is diagnosed and you survive a fixed period after the diagnosis. This type of policy is popularly called a "critical illness" policy and it is supposed to be used to create a corpus to generate income to replace the loss of income that normally occurs after such condition is diagnosed and fortunately you survive. Critical Illness Policies  are in addition to and not a substitute for mediclaim policies.

3) There is a 3rd kind of policy which pays a fixed sum of money for every day spent in the hospital. This kind of policy is called daily cash allowance policy and is again a supplement to and not a replacement for a Mediclaim policy

4) Another kind of policy pays a larger fixed lump amount if you have to incur any of the surgeries listed in the policy. This policy is suitable only for those people who are unable to get regular Mediclaim policies and would like to at least get some protection against surgical costs.

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Insurance: a Small Business Owner Should Have

Business Insurance for every one

1. General Liability Insurance: Every business, even if home-based, needs to have liability insurance.  The policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.

2. Property Insurance:  If you own your building or have business personal property, including office equipment, computers, inventory or tools you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc.  You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

3. Business owner’s policy (BOP): A business owner policy packages all required coverage a business owner would need. Often, BOP’s will include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . Based on your company’s specific needs, you can alter what is included in a BOP. Typically, a business owner will save money by choosing a BOP because the bundle of services often costs less than the total cost of all the individual coverage’s.

4. Commercial Auto Insurance: Commercial auto insurance protects a company’s vehicles. You can protect vehicles that carry employees, products or equipment. With commercial auto insurance you can insure your work cars, SUVs, vans and trucks from damage and collisions.  If you do not have company vehicles, but employees drive their own cars on company business you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage.  Many times the non-owned can be added to the BOP policy.

5. Worker’s Compensation: Worker’s compensation provides insurance to employees who are injured on the job. This type of insurance provides wage replacement and medical benefits to those who are injured while working. In exchange for these benefits, the employee gives up his rights to sue his employer for the incident. As a business owner, it is very important to have worker’s compensation insurance because it protects yourself and your company from legal complications. State laws will vary, but all require you to have workers compensation if you have W2 employees.  Penalties for non-compliance can be very stiff.

6. Professional Liability Insurance: this type of insurance is also known as Errors and Omissions Insurance. The policy provides defense and damages for failure to or improperly rendering professional services.  Your general liability policy does not provide this protection, so it is important to understand the difference.   Professional liability insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers to name a few..

7. Directors and Officers Insurance: this type of insurance protects the directors and officers of a company against their actions that affect the profitability or operations of the company. If a director or officer of your company, as a direct result of their actions on the job, finds him or herself in a legal situation, this type of insurance can cover costs or damages lost as a result of a lawsuit.

8. Data Breach:  If the business stores sensitive or non-public information about employees or clients on their computers, servers or in paper files they are responsible for protecting that information.  If a breach occurs either electronically or from a paper file a Data Breach policy will provide protection against the loss.

9. Homeowner’s Insurance: Homeowner’s insurance is one of the most important kinds of insurance you need. This type of insurance can protect against damage to the home and against damage to items inside the home. Additionally, this type of insurance may protect you from accidents that happen at home or may have occurred due to actions of your own.

10. Renter’s Insurance: Renter’s insurance is a sub-set of homeowner’s insurance which applies only to those whose who rent their home. The coverage is protects against damage to the physical property, contents of the property, and personal injury within the home.

11. Life Insurance: Life insurance protects an individual against death. If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. You pay a premium in exchange for the payment of benefits to the beneficiary. This type of insurance is very important because it allows for peace of mind. Having life insurance allows you to know that your loved ones will not be burdened financially upon your death.

12. Personal Automobile Insurance: Another very important type of insurance is auto insurance. Automobile insurance covers all road vehicles (trucks, cars, motorcycles, etc.). Auto insurance has a dual function, protecting against both physical damage and bodily injury resulting from a crash, and also any liability that might rise from the collision.

13. Personal Umbrella Insurance: You may want some additional coverage, on top of insurance policies you already have. This is where personal umbrella insurance comes into play. This type of insurance is an extension to an already existing insurance policy and covers beyond the regular policy. This insurance can cover different kinds of claims, including homeowner’s or auto insurance. Generally, it is sold in increments of $1 million and is used only when liability on other policies has been exhausted.

Source: http://www.forbes.com/

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Look-ups Before Buying an Insurance

As soon you become 25, and start handling your own money, elders, family and friends starts to prophet you about the need of an insurance policy. You ask your financial advisor and he suggests you some policies by saying, “They are good insurance products”, and you end up buying any one. Before you commit such mistake, have a look on these tips which will help you to know about what kind of insurance you need, suggested by Lovaii Navlakhi, CEO of International Money Matters.

These tips will surely make you smart enough to take your own financial decision.

1. Calculate the amount of insurance required
2. Decide on the type/types of products
3. One big policy or many small policies
4. Premium affordability
5. Matching goals with products
6. Choosing a company
7. Providing information
8. Claim settlement ratio
9. Offline/ Online
10. Adding riders

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Life Insurance Myths

Life insurance is not a simple product.

Even term life  policies have many elements that must be considered carefully in order to arrive at the proper type and amount of coverage. But the technical aspects of life insurance are far less difficult for most people to deal with than trying to get a handle on how much coverage they need and why. This article will briefly examine the top 10 misconceptions surrounding life insurance and the realities that they distort.

Myth #1: I’m Single and Don’t Have Dependents, so I Don’t Need Coverage
Myth #2: My Life Insurance Coverage Needs Only Be Twice My Annual Salary
Myth #3: My Term Life Insurance Coverage at Work Is Sufficient
Myth #4: The Cost of My Premiums Will Be Deductible
Myth #5: I Absolutely MUST Have Life Insurance at Any Cost
Myth #6: I Should ALWAYS Buy Term and Invest the Difference
Myth #7: Variable Universal Life Policies Are Always Superior to Straight Universal Life Policies Over the Long Run
Myth #8: Only Breadwinners Need Life Insurance Coverage
Myth #9: I Should Always Purchase the Return-of-Premium (ROP) Rider on Any Term Policy
Myth #10: I’m Better off Investing My Money Than Buying Life Insurance of Any Kind

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Financial Tips For Young Adults

Unfortunately, personal finance has not yet become a required subject in high school or college, so you might be fairly clueless about how to manage your money when you’re out in the real world for the first time. If you think that understanding personal finance is way above your head, though, you’re wrong. All it takes to get started on the right path is the willingness to do a little reading – you don’t even need to be particularly good at math.

To help you get started, we’ll take a look at eight of the most important things to understand about money if you want to live a comfortable and prosperous life.

1. Learn Self Control
2. Take Control of Your Own Financial Future
3. Know Where Your Money Goes
4. Start an Emergency Fund
5. Start Saving for Retirement Now
6. Get a Grip on Taxes
7. Guard Your Health
8. Guard Your Wealth
9. A Financial Basis for Life

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Motor Vehicle Accident Claims: Indian Laws

Indian laws on accident claims are quite stringent. The laws were formulated by prioritizing the best interests of the victims and those who are liable to disburse the compensation, such as insurance companies. Indian laws on motor vehicle accident claims are strict but beneficial for victims in claiming their legal rights in a court of law.

The Fatal Accidents Act, 1885 was enacted in India to protect the legal rights of the accident victims and their legal heirs. This Act entitles the legal heirs of a deceased accident victim to claim compensation from the person who committed negligence.

 

Indian Law on Accident Claims: Introduction of the Motor Vehicle Act

 

Indian law on accident claims is relevant due to the higher rates of accidents leading to loss of life and property across the country. In 1988, the Government of India introduced the Motor Vehicle Act, to make the Indian laws on accident claims more effective.

 

The Act provides for compulsory third party insurance and procedure of adjudication, to ensure relief to victims of accident cases. Also, the Act stipulates for establishment of Motor Accident Claims Tribunal to address the accident claim cases. This means that if you are a victim of a motor vehicle accident, your first point of reference to press for a claim is at the aforementioned tribunal that has been established to address similar claims.

 

Indian Law on Accident Claims: No Fault Basis and Mandatory Vehicle Insurance

 

Indian law on accident claims pertain mostly to the Motor Vehicle Act. Section 140 to 144 of the Act provides for No Fault Basis, which ensures relief to the families of victims who are killed in hit and run accidents, and where the killer vehicle is not identified. Compensation is granted, only if the following is proved:

• Accident was caused by the offending vehicle.
• The offending vehicle was insured.
• Death or injuries were caused by the accident.

 

Section 145 to 164 of the Act provides for mandatory third party insurance, which is compulsory for a vehicle owner. This means that if you have a vehicle that you use to move in public places, you cannot do so legally unless you have an insurance policy. Typically, your insurance policy papers must always be kept in the car with your car registration and driving licence. Section 146(1) of the Act prohibits a vehicle owner from using the vehicle in a public place without undertaking an insurance policy in compliance with the Act.  

 

Further, the Act provides for unlimited liability and limited defense of the insurance companies. Several court judgments passed by the Supreme Court have restricted the legal defense strategies put forward by various insurance companies. Also, the liability to prove the limited defenses rests on the insurance companies.

 

The limited defenses allowed to be made by the insurance companies include:

• Use of vehicle for racing and speed testing.
• Use of vehicle not allowed by permit.
• Divers without a valid Drivers license or who have been disqualified from owning Drivers license.
• Void insurance policy due to non-disclosure of crucial facts.

Ref. lawisgreek.com

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