- Better to pay a small annual premium rather than a large hospitalization bill
That is obvious, isn’t it? Paying a premium gets you cost protection. It also helps you budget for expenses in a predictable steady way. That is what smart people do. They provide for uncertainties of life how much ever fit and fine and young they may be. Also, and I say this with due humility and experience, things do not happen only in movies, or storybooks, or to the neighbor. They happen to us too.
- Healthcare Costs seem to be always rising
Like everything else and may be more, health care and hospitalization costs are increasing year by year. Many factors like rise in cost of land, doctor’s fees, scientific equipments, medicines and general inflation contribute to the increase. The rate of increase in the past few years backed up with industry research suggests that prices would roughly double in about 7 years.
- Unhealthy Lifestyle
We are living in the “screen” age, whether they are Touch or TV. When it is not an electronic gadget, there is the addictive television and that wonderful couch. As a result, the much required physical activity so essential for our bodily health suffers.
Add to that many unhealthy eating habits. With eating out becoming a kind of norm for modern day urban existence, we encounter our fair share of junk food, fast food, greasy food, and the likes.
Talking of urban existence, the tensions of our day to day life whether due work, traffic, commute or pollution do take their toll. It is a known fact that urban living if not managed well can cause stress induced ailments which could lead to conditions of the heart, diabetes, obesity, thyroid and so on resulting in hospitalization and thus higher healthcare costs. It is thus a no brainer that it is better to be insured and have cost protection to manage any eventualities.
- You may not get health insurance when you need it
This is very important and a reality that some of us will have to contend with if we are not careful. Insurance companies are very keen to cover people who are healthy and free from any disease or condition. The young are quite likely to be healthy on most counts. On the other hand, adverse health conditions in a person make them go all careful resulting in denial of insurance coverage at times. As a person grows older, some of these conditions start to set in. Even if the insurance companies agree to cover the risk in a few cases, they quote a much higher premium. Thus, it is wise to buy Health Insurance while one is young and healthy and the premium much lower. Remember that once you buy the policy, and even if your body were to develop any issues with health afterwards, insurance companies won’t penalize you or load premiums and would continue to serve you, provided you keep renewing your policy on time.
- Employer provided benefits via group health insurance rarely provide adequate cover
Even if you are covered for health risk due the employee benefit plans provided by your employer, review the coverage to ascertain whether the group policy has limitations for say room rent, disease wise capping and so on. Also, the sum insured might not be enough. Employers have their own budgetary constraints when renewing group health insurance policies year on year. If premiums rise substantially, they may reduce the cover or introduce stringent terms and conditions to control. This may not suit you or cover you efficiently as per your individual needs.
For those of you who might have a break between two jobs however small due the sabbatical you take or any other reason, it is wise to have your own individual or family floater health insurance policy. Also, due the many waiting periods in such policies before a claim can be made (4 year waiting period for pre-existing diseases, 2 year waiting period for certain specified diseases, maternity claim waiting period, new born claim waiting period, 1st Claim waiting period), it is wise to get into a policy early so that the waiting periods get served out.