Health insurance helps us to pay for healthcare. But people who are young or healthy often question about the need for health cover. Just like life insurances, health insurances are the services one pays for, but hopes one would never need in the future. Health insurances can be of much help during unpredictable and unexpected circumstances that come up in one’s life. Life is full of unexpected outcomes. One may be healthy now, but one can never predict when any sudden or adverse illness strikes. Such an illness can leave one with staggering medical bills and expenses. Also, the inability to pay skyrocketing medical bills can also ruin the credit history over the years.
Pros of Health Insurance
The main advantage of health insurance is that it provides coverage for some of the medical expenses during illness. Large hospital bills associated with surgery and dialysis or any major treatments may also be covered depending on the type of the insurance purchased. Health insurance also provides a financial safety net for the family.
Cons of Health Insurance
Cost can be the greatest disadvantage of taking up health insurance. Especially, if one is in poor health; many individual policies can cost several hundred to thousand rupees and can even go into lakhs. Also, not all types of diseases and conditions are covered in many of the health policies. The cost of general healthcare has risen much faster over the past years than the general rate of inflation which is adverse to the economy.
How To Use Premium Calculator?
The premium calculator is a specially designed tool that helps in calculating the monthly cover in order to get the sum insured needed by you. It’s quite easy and simple to calculate the premium using this. You’ll not even take 10 minutes to get the premium quote by filling out the premium calculator. Here are the three easy steps:
First of all, you’ll need to enter your basic information like date of birth, annual income, gender, life cover, number of children etc. You may also be asked to list down whether you smoke or not.
Then you’ll need to enter the insurance cover that you want and the tenure for which you want to be covered.
The premium calculator will compare a range of health insurance policies for you and you can choose the best one based on your budget and coverage and not just on the premium.
There are many factors which depend on calculating the health insurance. Some of them are listed as below:
There is a part which is kept in various public investments. Health insurance premiums get calculated based on the returns of these capitalizations.
To strike a balance between individual and groups, insurance policies are underwritten. To prevent the insurance companies from making losses this process is mandatory.
The rate of Mortality
The expense of mortality differs for various age groups and based on income. Basically, the rate of mortality is nothing but the cost that a health insurance company incurs in case of any eventuality to a particular customer.
Personal Health History
Insurance providers may or may not conduct a health check-up before insuring a policy but insurance companies do take into account a customer’s health problems, smoking and drinking habits etc., if any. The insurance premium is generally higher for those who smoke and drink regularly. So if you’re really concerned about getting a rebate in premium quit these habits right now.
Band rating is that rating where the insurer provides a base rate for a particular set with similar characteristics like age, gender, family size, profession, etc.
Tips And Tricks You Need To Know
It is important to realize the importance of health insurance policy sooner than late. But there are a few tips and tricks which should be kept in mind while buying a health insurance policy.
- One should choose the company wisely. General insurance and life insurance companies generally offer health insurance policies. But experts prefer general insurance policy over life insurance. Also, life insurance policies are costlier than general insured policies.
- Planning should be according to the future needs. One should always think of the needs that might arise in the future before choosing a health insurance plan. If someone has a family with ageing parents or is newly married, then one has to look out for the policy which covers aged parents and maternity costs.
- One should understand the premium calculation process effectively. A premium is the sum that one pays while buying the insurance policy. Although there’s a common formula to calculate the premium there are few factors that may change while charging a premium?
- One should always read the final clauses and agreements at the time of purchasing the policies. Health insurance policies generally have a number of clauses which are known as fine print. Reading each and every clause is more important. One should not hesitate to ask questions about the particular clause.
- Always check the reviews of a particular health policy. Sheer peace of mind should be of topmost priority when it comes to finances during a medical emergency. Therefore, one should talk, interact and research the reviews of a particular policy.
Hence, you should always keep in mind these insurance tips while choosing health insurance policies. Compare the policies online and buy the best policy that best suits your needs and requirements.