Importance of medical insurance and its features

Posted by akanshasingh on September 20th, 2016

Financial planning is very important part of your life as it helps you create cash reserves for your future needs. Just like you plan for good future your health is also an important goal to achieve. If you have good health you can work well, prosper, look after your family, enjoy life and perform the duties with full responsibility. However, in today’s time of growing uncertainties and hectic lifestyle maintaining an exceptionally good health is a myth. Therefore, owning a suitable medical insurance policy is very much important along with your financial planning goal. While you’re young and just started to earn, it will be a right time to give equal importance to health.

At younger age, you medically fit and not prone to any disease therefore, you get better coverage at low premium rate.  But however, as you gradually grow old your health gets impacted and finally you will have to bear the pain of your hard earned money spent on hefty hospitalization charges. Also, inflation is an added burden take affects your financial savings. Therefore, it becomes essential to have a proper medical insurance plan in place that would take care of your health if required by taking care of financial implications.

A medical insurance is basically a contract between the insured and the insurance company where you promise to pay a certain amount as premium towards your policy and in return the insurance company promises to pay for your medical expenses in case of hospitalization if you want to undergo treatment.

There are various types of medical insurances available for everyone as per their pockets and affordability. Insurance companies have introduced online tools where you can compare the policy in terms of benefits & features, discount and deals, premium payment flexibility, claim settlement ratio, preferred specialists, etc. and purchase the one as per your requirement and the one that fits into your budget.  It is advisable to go for a comprehensive medical plan as it covers some of the most important charges such as Cashless facility in network hospital, Ambulance charges, Pre and post hospitalization expenses up to specified time, Lab and investigating report charges and Easy claim process.

A proper policy in place helps you ease out the financial strain thus giving ample time to focus primarily on the health. Always remember that the insurance is after all a commitment between the purchasing party and the company. So, just signing and sitting back won’t be sufficient. You will have to understand that once you sign the form means you declaring that you’ll abide the rules and agreed with all the clauses. So, it becomes very important that you read the documents calmly and carefully.

Your information and declaration are basis on which the medical insurance companies will customize your health plan, evaluate risks and estimate the premium to insure that risk. At the time of claims, insurance companies in India checks the authenticity of these declarations.

Some factors that will determine the coverage amount for your medical insurance plan would be your income source, risk appetite, family members, place of living, occupation, pre-existing or hereditary disease, etc.