After all, a medical emergency can occur at any time, and the only way to deal with it is to be financially prepared for such an eventuality. Medical insurance is a safety net that takes care of your and your family’s financial health during medical emergencies. It pays for any medical costs that you have because of sickness, accident, or a wound after your card is issued.
The size of the health insurance market is estimated to be $12.86 billion in India and is growing. Health insurance can be confusing in a lot of ways. Plus, there are a handful of policies to consider that can be confusing. As a young entrepreneur, it is essential to understand these policies clearly to secure the right insurance plan. Let’s review some of the prominent aspects you, as a young entrepreneur, must know before choosing a medical policy.
Categories of Health Insurance Plans
Healthcare insurance providers provide various plans based on your budget and requirements. Some of the prominent categories of health insurance plans are covered below:
1) Individual Health Insurance
The corresponding medical policy provides health insurance coverage to individuals. It is written in an individual’s name and is per person in nature, implying that the insured amount can be utilized only by one person. So, if you are the policyholder and get hospitalized for an accident, the insurance company will pay all your bills until the sum insured. The remaining (if any) will be available throughout the policy.
2) Family Health Insurance
The policy offers coverage for the whole family, and the alternate name of the plan is a family floater. Typically, it covers a family of four persons, i.e., two adults and two dependent children. However, it may also have variants because some insurance providers allow flexibility in adding your parents and parents-in-law.
3) Critical Illness Insurance
Under this plan, you, as an insured person, obtain a lump sum payment if you are diagnosed with a serious medical condition like heart attack, stroke, or cancer. The corresponding financial support helps compensate for lost income, treatment expenses, and other expenses during recovery.
It provides direct cash benefits to ensure flexibility in utilizing funds. Moreover, it promises financial stability during life-threatening health conditions.
4) Maternity Insurance
It’s the program that offers health insurance to pregnant women. It’s an expense covering pregnancy, childbirth, and postnatal care (like doctor visits, hospital stays, and infant care). It also relieves financial stress by covering costs related to standard and C-section deliveries.
In addition to the plans above, certain health insurance companies also provide plans for personal accidents, cancer, etc. Hence, if you need a specific policy, go through their website or approach customer support.
When Shall I Buy a Medical Policy?
Young entrepreneurs often get confused about when to purchase a medical policy. The following section describes different life stages to get a better idea:
During the 20s
It is the best period to buy a health insurance policy. Generally, individuals at this age are in good health and may not be burdened with financial responsibilities. So, they can invest in a health insurance plan at a young age to get benefits like a considerable sum insured at a cost-effective premium amount.
You are guaranteed your health insurance policy renewal, even if you claim. So, when you reach the age where the medical expenses are significant, you will have finished all the waiting periods to make a claim.
During the 30s
Most individuals have a stable income by this age. You most likely will be married, invested in a home, plan to start a family, etc. Lifestyle diseases are increasingly affecting the young population. So, buying a healthcare insurance policy at this age is recommended. Note that it may come at a slightly higher premium.
A Guide to Choosing the Right Medical Policy
Considering some of the key aspects as outlined below can streamline the decision:
- Evaluate your healthcare needs, i.e., review your current health status and medical history and check for ongoing health concerns.
- Determine what premiums and deductibles you can afford based on your financial status. If you don’t expect any major medical expenses, you can opt for a higher deductible and lower premium plan.
- The premium you will pay will be based upon various factors such as the cover amount you opt for (sum insured), your health history, age, and type of plan. Select a company that provides most of what you seek at a reasonable price.
- Review what is included and what is not in the policy. Also, you must check under what conditions you can’t claim. With this clarity, you can save time and effort and avoid claim rejections in the future.
Conclusion
Health is truly wealth, but life is unpredictable. So, in addition to taking care of your health and lifestyle, you also must learn the significance of investing in a health insurance policy. It will support you and your family financially during critical life scenarios.
Photo by jesse orrico; Unsplash
