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POSTED BY ON February 28, 2014 3:04 pm COMMENTS (3)
hello all,
I know health insurance is important. i read many articles and question-answers here to gain more knowledge about it. But i did not understand few things that why asking the question. Please read my questions below:
1. Health insurance is 1 year or 2 year policy. Does premium remains same when we try to renew it? If not what really is benefit of investing early?
2. I read that in some policy there will be No claim bonus term. In some case it works like if i do not claim in current year then while renewing the policy my SA will increase. So lets say NCB gives 50% increase in SA and my current SA is 2lac then if i continue to renew my policy for 5 years without claim will my SA will increase like this 2–>3–>4.5–>6.25–>9.375?? and will it happen till the i keep on renewing it?
The reason I am asking this question is because of this case. My father is 66 years old. and star health quotation for his health insurance is 21k for 5 lac SA. it has 30% co-pay which means in reality i will be getting 5 lac*.7 = 3.5lac SA. also existing disease diabetics will not get covered before 4 years. so for first four years i will be paying 84k in premium without getting any benefits. Also there can be chances of increase in premium every year. So i am wondering is this health insurance is really helpful in such case??
My understanding about health insurance can be wrong. Hope your answers will increase my knowledge. 🙂
Thanks in advance.
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Dear Nikhs12345, the health insurance may not be much effective in your father’s case but my dear friend, we purchase Umbrella before it’s raining, to protect us. Once it’s already raining and we are drenched (your father’s case), the benefit of umbrella ‘ll only be to save from more drenching not to save from current position.
Thanks
Ashal
Hi,
Just to add what Manish mentioned. There’s also risk that you may develop an illness which Health Insurance company may permanently exclude. In case of my mother proposal got rejected by 3 companies and was finally accepted by 4th company where they permanently excluded Arthiritis. Her age is 58. So it’s very difficult to say at what age you should take the policy as you are not sure at what age you may get a major illness which may lead to waiting period or permanent exclusion.
Also the premium may change based on the approval from IRDA.
Insurance is all about covering your risk 🙂
Thanks for asking this questions, The same would be the doubt in many minds . So let me clear them
1. Yes, premiums increase from time to time, and its based on AGE SLAB , so there are slabs like 25-35 yrs , 36-40 yrs, 41-46 yrs … and so on . So someone who is 25 yrs old will pay premium X , and then he will keep on paying same premiums till he/she is in slab 25-35 yrs, now after 9 yrs, when they move to 36 yrs slab, the premium will increase and so on ..
The advantage of early investing in health insurance is that you start getting covered for all the things which follow after taking the plan , If you are late in taking the policy , the illness you develop in between will follow the waiting periods . Also if you take policy late, you are exposed to the risk for all the years before that. Its like whats the right time to wear the helmet ? The answer is from the starting of journey, else if something happens in between , then you get all the risk !
2. NCB is always restriceted till a limit ,like 100% of SA or 50% of SA . So if you have a 2 lac policy, and you do not claim for it for 2 yrs, so it will increase to 3 lacs (50% addition) and then 4 lacs and thats all . After that it will not increase . The same happens in case when premiums are discounted , there is always a limit upto which it will happen .
Like in Oriental , the NCB is 5% discount in premiums upto maximum of 20% .
Regarding the co-pay point, yes – if there is co-pay of 30% , then you will pay 30% of the bills yourself. I guess the copay can be removed if you take a higher amount policy, like in Oriental there is copay of 10% for SA below or equal to 5 lacs . If you take a 6+ lacs policy, there is no co-pay !
I hope I answered it properly, ask if there are more questions !
Manish