health insurance for family, medical insurance policy

Insurance is a subject matter of solicitation, please read the offer document carefully before investing. It is the most common line when you want to buy health insurance for a family. Due to this one line a lot changes. I say this because most people do not read the offer document before signing. Things become critical when you buy medical insurance for self or family. Imagine the situation when you or your loved ones are admitted to hospital and the insurance company rejects the claim. Not everyone has enough resources to fund the medical expenses. Therefore, you must read the offer document. There are terms and conditions which may cause trouble later.

Similarly the same rules apply when you buy term insurance or a life insurance policy. Terms also the reason why the price of term insurance may vary company to company. In this article we will try and understand the tricks insurance companies use for rejection. At the end we will also try to answer important questions linked with an insurance policy.

Who needs a health insurance for family

Everyone needs to take protection for the family from unexpected illness. Problems do not blow horns before coming. They just arrive and you have to deal with them. Therefore, whether you are doing business or a field executive job, buy insurance. The idea is to make sure you do not get cheated. Or at least you should know how insurance companies cheat. We just want you to be careful when you buy health insurance for your family.

How insurance companies cheat?

Almost all the insurance companies make policies favorable for business. The customer side is protected by the regulatory authorities. Companies use many tricks to make profit in business so it is obvious to expect them from insurance companies as well.

First of all, they make use of diplomatic language in the insurance offer documents. Additionally, agents also do not inform customers about all details. For example: at the time of emergency you come to know that there is a limit of room rent per day. This may change everything completely.

This is just one example, many companies do not mention illnesses not covered. Instead they use the term pre-existing diseases.

Rarely will you find a clear list of pre existing diseases. The pre-existing disease definition itself is doubtful because many people are not even aware about their medical condition.

Difference between Mediclaim and Health Insurance Policy

Many people ask this question. Therefore, let us understand with the help of definitions.

What is Mediclaim Insurance?

Mediclaim insurance is a type of insurance plan that offers specified financial protection against health-related expenses. It is also a pocket friendly way to mitigate any health related emergency. On the other hand, Mediclaim insurance coverage is limited to hospitalization and other medical expenses. These are to be borne by the insured.

What is Health Insurance?

Health insurance covers the cost of medical and surgical expenses incurred by the insured. The policyholder either has to pay for such expenses out-of-pocket. Insurance companies later reimbursed by the insurer. In some cases the insurance company also settles the bill directly with the network hospital. The coverage, most of the time, is more extensive than hospitalization expenses. Therefore, it is usually more expensive than a Mediclaim policy.

Do not buy anything you do not need

Many people buy large health insurance cover considering the health uncertainties. Due to this, they also end up paying a lot of money. Especially at a young age you need very less medical care. This is the time when you should think about increasing your savings. You may want to start a business. There are many start up business ideas to make money. Aspirational needs are also important. For example, if you want to buy a car, you need funds for this. Therefore, no need to spend unnecessary money on a medical insurance policy. However, increasing the cover is always available as an option in future.

How many insurance policies are enough for a family?

First of all, if you are the only earning member of the family you should think about taking these policies.

Health insurance for family: to make sure your family is protected from health emergencies.

Term Insurance: to make sure the family gets enough funds to survive in case of your early death.

Life insurance: to make sure you have protection as well as some savings in the longer run. You may need funds for the education of your child or marriage.

Pension plan: to make sure you are not dependent on your children for basic needs. A pension fund can ensure your independence.

How can I avoid health insurance?

Purchasing a health insurance policy is mostly your decision. So technically you can avoid it. However, sometimes you also get medical insurance from your employer by default. In this scenario it is mandatory. Therefore, to answer this question let us take the first situation where you are an individual where you buy insurance on your own. You have a choice to avoid it under the following circumstances.

  • You are a healthy person and do not expect to fall sick in the near future.
  • In addition to the above statement, you work from home so chances of getting into a road accident are very low.
  • There is enough bank balance to take care of your medical expenses. This way you are in a situation to live with the risk.

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