Having a life insurance plan to be your financial aid in times of medical emergencies is crucial for each and every person. In India, there are a number of health insurance companies that are now providing affordable health insurance plans that can be easily bought by individuals who earn a basic amount of salary. There are also different types of health insurance plans that are offered to the people which each have their own unique set of properties and purposes behind them.
In India, with the growth in the economy of the overall country, more and more individuals are being able to afford basic health care facilities. People no longer believe that being insured under a health care plan is something of a luxury for everyone. Through initiatives like Midi Care every Indian now can avail of the correct medical treatment that they deserve.
Reasons Why You Should Have a Life Insurance Plan.
Having a health insurance plan is a guarantee to being medically secure for a certain period of time. The health insurance plan takes care of all the financial details when it comes to the health care needs of an individual. Having the plan also comes with a number of add on covers and bonuses depending on the type of plan that is being bought and the insurance company from where the plan is dispatched.
Some of the reasons why each and every individual should be insured under a medical insurance plan include:
- Having a life insurance plan is the surest way of getting the medical treatment that an individual deserves without having to worry about the costs for it. The life insurance takes care of all the finances that are associated to ailments and illnesses that an individual may incur. This helps everyone to get the correct treatment for their diseases.
- Life insurance plans in India are extremely cheap. There are different types of life insurance plans that come along with their different premium rates. The income of an individual and several other factors help to determine which life insurance plan will fit the budget and the needs of the individual the best.
- Those who are insured under a life insurance plan or any type of insurance plan are exempted from paying a certain amount of money in the form of taxes to the Government of India. This is due to the Section 80D of the Income Tax Act.
- For a life insurance plan or a life insurance plan there are several add or features that can be added to the life insurance either externally bought or free of cost in order to enhance the functional capabilities of the entire plan.
- The premium for a life insurance plan is flexible depending on the type of plan that is bought and the insurance company from where the plan itself is bought. There are life insurance plans where the premium is already pre-decided while in other plans the premium can be decided jointly between the policyholder and the insurance company. There are also certain life insurance plans where the premium for the plan is directly calculated in front of the insurance policyholder.
- A life insurance policy can last throughout the lifetime of an individual as long as the premium for the policy is regularly paid for. This is also according to an agreement between the insurance policyholder and the life insurance itself.
Calculating Life Insurance Premium.
The premium for a life insurance plan depends on the type of life insurance plan that is being bought and the company from where the life insurance plan is dispatched. In certain cases, the premium for the plan is calculated right in front of the individual. Some of the factors that determine how high or low the life insurance premium will be include:
- The more the age of a person, the more likely he/she is to have a medical problem of one sort of the other. Thus, more the age of a person the more will be the premium for the life insurance plan. This is also the reason why younger individuals have to pay a lower amount when it comes to their individual life insurance plans.
- It is statistically proven that men have been found to have a higher chance of getting diagnosed with a medical condition as compared to women. It is also for this reason that men have a higher insurance premium rate as compared to a woman.
- Those individuals who have a decent body mass index score are the ones that have a normal premium rate. Due to their weight being according to their age, they are less likely to incur any diseases or medical conditions as a result of their daily lifestyle. The body mass index is an indication to the lifestyle that everyone is living. For this reason, those who are obese or have a higher body mass index will require to pay a higher amount in the form of premiums.
- The medical history of an individual is the main point from where the premium rates vary greatly. Those individuals that have a long and serious medical history will require to pay a higher amount in the form of life insurance premium as compared to someone who does not have must of a medical history. This is because the insurance policy has to pay expensive payments at the time of claim for those who have a long medical history.
- Those individuals who follow or have an interest in dangerous activities have a high possibility of getting injured and making claims to their insurance. This is the reason why those who have a dangerous hobby have to pay a higher amount in the form of premium as compared to others.
- The occupation of an individual also decides whether the insured has to pay a high rate of premium of a low rate. There are certain occupations that are considered to be hazardous in nature. If there is an individual who is following such an occupation like mining, they will need to pay a higher amount in the form of premium.
Types of Life Insurance Plans.
In India, there are different types of life insurance plans that are offered to the masses. Each of the insurance plans have a specific reason for being introduced and provide different benefits to the owner of the plan. Some of the different life insurance plans that are offered in India include:
- Term Life Insurance – This is the cheapest form of an insurance plan that can be afforded by anyone with a basic income. This plan can also cover the family of the insured. The plan provides financial help to an individual throughout the term of the plan and it can be extended to last an individual throughout their lifetime.
- United Linked Plan’s (ULIPs) – A life insurance plan that is also an investment plan are the ULIP Plans. These plans help an individual to save up for the future by keeping a certain amount of money aside for being reimbursed to the policyholder.
- Endowment Plans – A health insurance plan that gives a guaranteed amount of money in the form of returns to the policyholder are the endowment plans.
- Whole Life Insurance Plans – A whole life insurance plan is meant to financially cover the medical needs of the insured throughout the life of an individual. There are also certain whole life insurance plans that last an individual a total of 100 years. These plans have a regular premium rate that is already pre-decided at the time of buying the plan.
- Child Plan – A life insurance plan that is also a type of investment plan for the future of the child is the Child plan that is provided by nearly all health insurance companies of India. The child plan secures all children who are under the age of 18 years. As the child turns 18, the sum assured of the plan is given back to the policyholder so that it can be used for future purposes.
- Retirement Plan – For those who are above the age of 65 years, they can avail of the retirement plan which are special life insurance plans that are specifically catered in order to meet the financial needs of the elderly. There are different variations of this type of life insurance plan since different policyholders have different needs. This plan comes with a death benefit where all the sum assured to the policyholder is paid to the nominee.
How to Find the Best Life Insurance Plan for You.
Due to there being a number of life insurance companies in India, it is difficult for anyone to fin the insurance plan that fits them perfectly. It is due to these reasons that certain questions about the exact inclusions of a life insurance plan should be researched upon beforehand so that the policyholder can easily identify the type of plan that suits them the best.
The internet has made it easier for everyone to view and find the life insurance plan that they want. There are now online sites that compare the different life insurance plans offered by companies in an easy tabular format that can be understood by all. It is through these online sites that deciding which plan to buy has become easier.
The internet now also allows any individual to buy a life insurance plan anytime that they deem fit. The premium for a plan, renewal of an old plan, claiming of an existing insurance plan can all be done on an online basis anytime, anywhere. There are a limited number of steps to help every individual achieve what they want on the internet.
Some of the questions that need to be asked before a life insurance plan is bought include:
- What type of life insurance plan should be bought?
- What should be the premium of the plan?
- What is the reputation and the overall rating of the insurance company?
- What are the inclusions, exclusions and the benefits of the insurance plan?
- What are the add on covers of the plan?
- How does one claim the specific life insurance plan?What is the claims ratio of this plan as compared to other life insurance plans?
- What do other customers of this company say about the claims process for this plan?
- Will the premium of the plan increase with each passing year or does it change?
- How many network hospitals are linked to the insurance company?
Claims Process for a Life Insurance Plan.
For a life insurance plan there are a number of ways to claim the insurance plan. A claim occurs when the policyholder is in need of financial help for a medical treatment and needs the help of the money that is already present in the form of a life insurance plan. There are two prime ways in which the claims for a life insurance plan can be made.
- No Claims Process – In this process, the policyholder is admitted and treated at a network hospital that is already under the life insurance company. Due to the links between the life insurance company and the hospital, the individual can avail of a completely free medical treatment without having to worry about the finance part of it. The insurance company in turn takes care of the finances and pays for it from the insurance of the policyholder. Due to this, those insurance companies that have a greater number of network hospitals are preferred as compared to other insurance companies that have no ties at all.
- Reimbursement Process – In this process, the insured is not treated at a network hospital. The entire medical treatment for the insured is taken care of by finances that is also provided by the policyholder. In this process, the insured has to send all the receipts and the bills from the hospital along with a claims form to the insurance company in order to get reimbursed for their claim. This insurance company receives the call of claims then analyzes the different receipts and bills that are sent from the policyholder. After analyzing, the sum that is reimbursed to the policyholder is decided and given back to him/her. This method of claiming an insurance is not so popular among policyholders as the amount that is given back from the insurance company changes.