Thursday, 18 June 2015

Good Interesting Details on Savings-Cum-Health Insurance Plan

Posted by RaviKumar Nama
Because of the increasing life-style deceases, the importance of Healthcare insurance is rising. As the cost of the Healthcare is increasing every passing day, having an Health Insurance is mandatory now-a-days. When any of your family member hospitalized, paying of huge medical expenses at one go can be herculean task and would result a big blow on your savings. Hence, having health insurance is vital for every one. However, a lot of awareness is required among the people on Health Insurance. Insurance Regulatory and Development Authority (IRDA)  is trying to bring awareness among the people with a new innovative proposed Health Insurance Product also called Savings-Cum-Health Insurance plan. We will see more details about Savings-Cum-Health Insurance plan in this article....


Why We Need Health Insurance:

  1. The increase in diseases because of life style and food habits
  2. The increase in hospitalization expenses
  3. Poor quality of Healthcare services by Government
  4. Never know when we have medical emergency
  5. Availability of Innovative Health Insurance products at affordable prices


Why Many Don't Opt for Health Insurance:


  1. Lack of Awareness among the people, particularly at Rural and Semi-Urban areas
  2. Many people thinks, paying premiums for Health Insurance is waste of money as they will not get any returns
  3. Only major hospitals providing cash less benefits

About Savings-cum-health insurance:


To promote the importance of taking Health Insurance among the people, the Insurance Regulatory and Development Authority (IRDA) is considering a proposal to allow savings-cum-health insurance products. The proposed savings-cum-health insurance plan will offer interest to policyholders, but cannot be operated like a bank account.

The premium to be paid will be divided into three parts:

  • First, for risk charge for health insurance;
  • Second, for expenses; and
  • Third, the savings component
Hence the product is structured in a way where the policyholder can place money to save for future medical expenses. The health insurance component shall have a guaranteed renew-ability for life, but the risk charges could vary with the insurer having the right to review the risk premium rates annually.

Some Facts About Savings-cum-Health Insurance:


  1. The premium paid under this proposed health insurance plan would be eligible for a deduction under Section 80D of the Income Tax Act, 1961, adult to Rs20,000 each year.
  2. Such savings-cum-health insurance plans are quite popular in developed countries and in India if the proposal is implemented well, it can aid better growth of health insurance.
  3. This scheme is to attract Rural and Semi-urban people as these people expect some returns from their returns.

Conclusion:

Having health insurance can be of great support during financial difficulties and there is no plausible reason why one should not opt for health insurance. A good health insurance plan with an optimal cover is necessary, because medical expenses related to you or your family members can sabotage your financial planning.

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