Why do we need Health Insurance Policy?

Most unexpected expenditure in Human Life is Medical Expenditure. Recently i underwent Major Surgery & my tryst with Indian Medical System was not so good (Financially). Thankfully i had Health Insurance policy and i was saved from Huge Medical Bills.

Indians mostly prefer Private Health Care Institution over Govt Hospitals despite the fact that Govt Medical Services are Free or provided at very nominal cost. Reason is very simple “Quality”. I need not to write much on same, you may visit any Govt Hospital to find out yourself.

Health Insurance is must for every individual and it should not be considered as wasteful expenditure…Rather i would say that before thinking about investment, we should buy both Health Insurance and Term Insurance to safeguard our & our family’s future…Trust me health insurance is not that costly but can be a great support in the time of crisis on health front. I am listing down reasons why we need health insurance policy? and why it’s a must buy?

1. Quality Health Care: Quality health care comes at a cost rather i would say at a premium. Health Care is not a social service in India but a business for Private Hospitals. Quality Health Care is almost 50% costly in known hospital chains compared to mediocre health care from unknown private hospitals..According to me reason for same is costly medical education in india & scarcity of health institutions providing quality care.

2. Today’s Lifestyle: One day i was watching a photograph of my father when he was in early 30’s & then i saw my photograph. I was looking 10 years older then my father at same age. I will give credit to today’s lifestyle which is responsible for this transition. Today’s generation is more prone to diseases and may need health care at very early age. Also in health insurance policy there  is a clause of waiting period for pre-existing disease (ideally 4 years). Its better to avail health insurance at early age when we are young and healthy.

3. Inflation / Future Medical Expense: Medical Cost races ahead of  inflation at much faster rate becoz Quality Health Care cannot be quantified in terms of cost. You cannot negotiate on Health Care cost. The cost of any medical procedure is same for everyone in a Good Pvt Hospital except room rent therefore everyone need to shell same amount of money for treatment.

4. Inconsistent Source of Income: Today 90% of people in service sector are employed by Pvt Sector…Pvt Sector is most unsecured as this sector does not provide job guarantee & post retirement benefit.

5. Early Retirement Age: Today retirement age in Pvt Sector is early 40’s compared to late 50’s, a decade back..May be after 10 years, retirement age will be late 30’s. I would like to ask, how many employees in your organization are above 45. After retirement the most costly affair which eats into your saving is health care…Its better to secure your health care future right now.

Before closing the post, i would like to add that before buying/selecting a Health Insurance policy kindly do a proper research on benefits attached with the policy. Most important point to consider is claim settlement ratio of insurance provider becoz if u buy a policy and your claim is not settled then its a waste. Though claim settlement ratio is not the only criterion to finalize policy but one of the most important criterion.

Last but not the least, never conceal any information at the time of purchasing policy. You should provide all the information correctly at the time of buying a policy to avoid any inconvenience in future.     

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