Do you feel people are becoming health conscious? Some people, especially in urban and semi-urban areas, exercise regularly. They focus on healthy eating. There’s yoga as well. Despite the challenges posed by modern living, such inclination towards staying fit suggests being healthy is not only aspirational but also achievable.

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The rise of digital and social media has played a huge part in helping people realize the importance of a healthy body. But accidents and viral and other acute ailments /diseases are unpredictable. Things can go wrong even if you are healthy. This is where the safety net of health insurance can be a beneficial proactive measure for financial security. Read ahead to know the need of a suitable health insurance plan for people of all ages. 

Understanding Health Insurance

You choose your preferred health insurance company and select a plan with optimal coverage. You buy a policy – usually, for a year – by paying the insurance premium. The policy is bound by predefined terms and conditions. In case you need medical assistance due to an unfortunate event, the insurance company will bail you out financially, considering you meet the terms and conditions. You continue the coverage by renewing the policy. This is how health insurance works.

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Perception & Reality

People have often resisted buying health insurance policies based on their one-dimensional perception. It is perceived that health insurance is for the elders – youngsters do not need to bother about it. Some people find the policies to be expensive and their terms and conditions complex to comprehend. Also, why worry when you are covered under your employer’s group insurance plan? Another assumption is that the savings in the bank will be enough to sail through a medical emergency. However, the reality is different.

Health insurance plans are equally important for the younger generation. Buying a plan early on in life can ensure better coverage at a lower premium. Buying a plan at an early age and renewing it on a regular basis also ensures that the waiting periods for various illnesses get completed.  Nowadays, digital-first insurers have come up with affordable and easy-to-understand policies. You can choose from a variety of Health insurance plans , sum insureds, add on covers such as Accident Policy, 
Critical Illness, or a Hospital Cash policy.

There’s the option to buy Top-up and Super Top-up plans as well which offer coverage if expenses exceed beyond a threshold. A comprehensive health plan can ensure your savings remain in the bank as insurance will cover the bulk of the medical expenses.

Why is Health Insurance Necessary?

Sedentary lifestyle, rising pollution levels, increase of treatment cost and a gloomy uncertainty regarding prevailing and unknown health hazards have made buying health insurance necessary for the young and old. A wide-ranging health insurance plan can act as a shield against your savings. Your fixed deposit and other investments can keep growing steadily irrespective of a financial emergency, as the health policy will take care of it.
Instead of focusing on creating a massive ‘medical emergency fund’, you can buy a suitable health insurance policy and invest money for better financial returns. Health insurance also offers tax benefits based on the cover.

You can avail the best treatment without worrying about the expenditure as top health insurance companies have tie-ups with prominent hospitals. Claims are settled in a cashless manner in these network hospitals leaving you free from the burden of arranging money during a crisis and getting entangled in the claim reimbursement procedure.  

Renew in Time

A health insurance policy comes with an expiry date. For continuous coverage, it needs to be renewed before that date. Not renewing the policy in time leads to losing the benefits of renewal which include a No Claim Bonus, and most importantly the waiting period will be applicable all over again when you opt for a fresh insurance policy in future.

Do not push policy renewal to the last minute. Renew it earlier and take your time to review your health condition, coverage, and the insurer’s performance while doing so. You also have the option to choose a different health insurance company without foregoing the accrued benefits. While selecting a health insurance company, consider the cover, premium, as well as the insurance company’s overall service.

Uninterrupted Coverage

Look at health insurance as a necessary companion for financial security during unforeseen medical issues such as infections, accidents, and diseases. Buy the policy at an early age and keep renewing it in time for better and uninterrupted coverage. 

(Authored by Biresh Giri, Appointed Actuary & CRO, Acko General Insurance)