health insurance best investment

Is Health Insurance Best Investment for Millennials?

health insurance best investment

Today, you will find millennials investing in a plethora of schemes to expand their wealth. But, the one investment plan that they often overlook is health insurance plans, which they think doesn’t multiply their wealth. But, what they often fail to consider is how this financial instrument can prevent their wealth from eroding.

How will a health insurance plan help you save money?

 

Coverage

This is the main reason why people buy a medical policy in the first place. When you have a health insurance plan, you have to pay some or none at all — depending on the policy terms and conditions — for the following:

  • Pre and post hospitalization charges
  • Doctor’s and nurse’s fees
  • Cost of running tests to diagnose your illness
  • Cost of therapy, medicines, surgery, prosthetics etc.
  • Room rent

 

Maternity Benefits

Most health insurance policies offer maternity benefits like pre and postnatal care of both the mother and the child, cost of delivering the baby, tests run on the baby to determine if it is healthy etc.

Out Patient Department Charges

Even if you do not need hospitalization and you only need to consult a doctor at the Out Patient Department, your health insurance policy will cover the expenses.

Regular Check-ups

Most people do not go for a health check-up unless the symptoms of an illness compel them to because check-ups are expensive. Health insurance policies make provisions for pre-emptive check-ups. Don’t ignore check-ups as they can detect illnesses at the onset and allow you to begin treatment at the earliest. A head start on the treatment always increases your chances of staging a full recovery and that too within a shorter duration.  

Tax Benefits

Who doesn’t want respite from taxes? With health insurance policies, you are entitled to tax benefits under Section 80D. The sum insured that your insurer pays is not considered as an income. That is why no taxes apply.

Daily Hospital Cash Allowance

This feature takes care of your day-to-day expenses when you are hospitalized.

Organ Transplant

Organ transplants are immensely expensive and very difficult to afford unless you invest in a health insurance policy, which covers the cost of transplant and aftercare.

Critical Illness Plans

If you invest in these plans, which cover some grave debilitating diseases like stroke, cancer, kidney failure, you can receive a substantial payment if you ever come down with the specified ailments. The insurance payout can actually help you sustain yourself during trying circumstances.

To find out if you are at risk of contracting a critical ailment, you can talk to a doctor through MediBuddy’s E-consult.

Why should Millennials invest in Health Insurance?

Millennials are young and healthy and hence they believe they are immune to ailments. However, if you look closely, you will see that the life of a millennial is one of anxiety, stress, and worry. This, coupled with a sedentary lifestyle and junk food, makes them prone to a number of chronic disorders.  

To make matters worse, we live in times when pollution levels have gone up drastically. This rise in pollution levels is one of the major reasons behind the increasing number of severe heart and lung ailments.

Simultaneously, health care services have also become expensive. So, even a brief stint in the hospital can chip away at your savings. Having a health insurance policy in such circumstances will help cushion your finances.

Moreover, if you buy a policy while you are young, you will have to pay a lower premium. This is because according to insurers, young people carry less risk as opposed to older people when it comes to their health.

Then there is the waiting period – the mandatory period you have to wait before the benefits of a policy kick in. Because a person’s health is directly proportional to their age in most cases, a young person can easily get through the waiting period compared to an older person.

Health Insurance policy vs. a Group Insurance Plan

If you are employed in an organization, most likely you will be included in the company’s insurance plan for employees – the group insurance plan. This plan not only caters to your health care needs but also covers your family. This is why many millennials feel that they do not have to invest in a separate health insurance policy if they already have a group insurance policy.

But remember, the benefits apply only as long as you are employed with that firm. If you resign, retire, or are let off, you will have to fall back on an individual health insurance plan.

Healthcare plans are vital. And being young is no excuse for not
investing in a health insurance policy. So, get one today and al-
ways safeguard your health with MediBuddy. 

References:

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3 Important Ways to Safeguard Basic Sum Insured


Joseph is a happy man today. He invested in an affordable health insurance plan some time ago; a health insurance for himself and his dependents should things go awry. Great move Joseph, really commendable.

His father, Joseph Sr. is 89-years-old. A few days ago he tripped over the hose while giving his prized 1960 Volkswagen Beetle a thorough washdown. He now has a broken hip that requires surgery. The chances of him driving the Beetle are slim, but yes, Joseph’s father did ride in it on his way to the hospital, and will probably be backseat driving for some time.

Joseph is content because he realizes that a hip-replacement surgery for his old man will be covered by his insurance policy. He is also in a pickle because he doesn’t know why he should conserve his sum insured when all the costs are already covered under his policy.

What Joseph, and you, don’t realize is that there are other dependents covered under the same policy, including the policyholder. They too need money for any medical emergencies or hospitalization in the future.

That said, here are 3 important ways that can help you and Joseph conserve the sum insured.

The ‘Cashless’ Health Insurance Coverage

Joseph understands why his friend got a better deal. Since the hip surgery could be planned in advance and he had ample time to scour for the best deal, he went from hospital-to-hospital, wheelbarrowing his dependent…No! He didn’t do that; he’d break his own hip if he had.

So, how did he conserve the sum insured?

He just contacted MediBuddy and opted for a cashless insurance claim. MediBuddy provided all the network hospitals where a hip surgery could be done, offering more price transparency in the process.

He also narrowed down his choices and picked one hospital that offered the best care at the best price with the added advantage of package pricing available for cashless hospitalization.

Explained: Preserving Basic Sum Insured with Pre and Post Hospitalization

The hip surgery for Joseph Sr. is just a few days away. The health insurance coverage will definitely cover the expenses, but there is a lot to be done ahead of an inpatient procedure: doctor consultations, lab tests, and more. There’s also a lot to be done after hospitalization, where you need to monitor your health with lab tests, ensure you stick to your medicine schedule and get all the rest you need.

Joseph can opt for cashless pre and post hospitalization to maintain the sum insured.

How?

Well, the procedures before and after the surgery are offered by multiple healthcare providers that run offers and promotions. For instance, MediBuddy garners and lists all offers and discounts on their website and app so that a user can avail the best healthcare services at better prices.

Joseph can carefully weigh the pros and cons of every service he wants to avail for this father, before and after surgery. Reasonably priced treatment with additional offers and discounts shaves off very little from the kitty, thus preserving the sum insured.

Hospital Room Charges Nibble Away at the Sum Insured

Joseph always wants the best for his father. He’s looking at hospital accommodation of the highest quality—good food, entertainment, AC, squeaky clean bathroom, a comfy attendant’s bed, and housekeeping at constant beck and call.

But he doesn’t understand sub-limits. Well, this is basically a stipulation within the sum insured of a medical insurance which covers treatment or accommodation upto a certain amount. Anything over and above the maximum threshold is paid from the policyholder’s pockets.

The cap on room rent is one of the sub limits in health insurance. If Joseph admits his father into a private room, the charges for, say, an X-ray or Doctor’s visit will be more in comparison to the same for a semi-private room. In short, treatment charges (excluding medicines which are charged at MRP and other consumables) will depend on the room rent—higher the room rent, higher will be the charges and vice versa.

Anything above the daily sub-limit will be charged out of Joseph’s pockets, which won’t be reimbursed resulting in the sum insured taking a hit.

To final call to preserve the sum insured is all upto Joseph now. He can use up most of the sum insured and then pay from his own pockets for future emergencies, or conserve both the sum insured and personal savings. The first option is not viable unless, of course, Joseph has deep pockets or his father doesn’t object to pawning his beloved VW Beetle. He went with the second option because he got his father patched up, preserved his sum insured, secured his dependants’ health, and never tinkered with the idea of pawning the Beetle.