WHO’s health financing profile shows that residents pay for about 67.78 percent of total healthcare costs in India, with the rest coming from government initiatives and regulatory authorities. In contrast to the global norm, where private organizations fund only 18.2 percent of healthcare costs, this is a significant achievement.
Individuals have a significant financial burden due to healthcare expenditures due to government funding and medical inflation disparities.
According to a 2017 Mercer Marsh Benefits survey, India’s medical trend rate was 10%, indicating that per capita health care spending will rise at the specified pace.
Health insurance coverage to cover all of these costs is becoming increasingly necessary, as shown by these figures. Even though a wide range of healthcare plans are available to meet the needs of the country’s diverse population, signing up for an insurance plan before the age of 30 has numerous advantages.
The Challenge of Group Health Insurance Policy Exclusions
People who have just entered the workforce frequently believe that their employer-sponsored group health insurance policy will cover all of their medical requirements.
Even though employers bear a large share of the premium costs, so decreasing the liability of salaried employees, the coverage provided is generally limited.
People are frequently forced to foot a large percentage of the medical price on their own (co-payment clause is present). Room rent caps are included in group policies as well.
You will also lose your health insurance coverage if you decide to leave the specified firm. What do you think of that as a solution?
A health insurance policy that stands on its own.
It does away with all of those restrictions, providing individuals with complete protection. Until you reach adulthood, you can take advantage of the entire amount guaranteed each year.
If two severe medical conditions occur in the same year but are unrelated, the sum promised can be claimed twice per year. You also have the opportunity to refill your sum insured.
Early health insurance investment has numerous advantages. Employer coverage isn’t enough.
Are you covered by the group health insurance supplied by your employer? Because of the high rate of medical inflation, your employer’s health insurance plan will not cover your inpatient costs.
Furthermore, if you lose your job or change jobs, you may find yourself uninsured. As a result, purchasing your health insurance policy is highly recommended to ensure your financial security.
Lifestyle-related diseases are on the rise.
With an increase in the number of inactive people and increased consumption of junk food and pollutants, ailments like hypertension, diabetes, and obesity have increased.
Furthermore, these illnesses often begin in childhood. Deaths from diseases like cancer, heart attacks, and strokes, among others, have become all too commonplace.
Lifestyle and severe illnesses both require medical attention, and that medical attention is costly. As a result, you must obtain insurance as soon as possible.
Completing the waiting time in advance of needing the service
Pre-existing conditions and specific diseases like cataracts, hernia, and others have a 2-4 year waiting time in most health insurance policies.
You will not be covered for illnesses you already have when you buy the procedure if you wait this long. By the time you need coverage for a pre-existing condition or a specific ailment, the waiting period on your health insurance policy will have expired if you bought it when you were young.
1. Take advantage of low-interest rates by locking them in.
Life insurance premiums are fixed for the term of the policy unless the amount of coverage is increased. Purchasing life insurance when you’re younger keeps your premiums lower and lowers your overall life insurance costs. Life insurance prices in your 20s and 30s are just unbeatable.
Your health is also a determining factor in the cost of life insurance, along with your age. Preventing health problems like high cholesterol or high blood pressure by becoming insurance early allows you to lock in low premiums for the foreseeable future.
2. Ensure the safety of those you care about.
You may be burdened by student loan debt, credit card debt, or vehicle loan debt — or you may be in the market to buy your first home. The strain of repaying your debts would be relieved if you had life insurance to cover your final expenses.
A life insurance policy can help prevent the surviving partner from paying off the remaining balance of the mortgage on their own or from losing their property to foreclosure.
The cost of a whole life insurance policy might be prohibitive for young couples on a budget. Therefore term life insurance is often the best option.