Why should you get a standalone cancer insurance plan?

According to a report by the Indian Council of Medical Research (ICMR) based on its National Cancer Registry Programme, the number of new cancer cases is expected to rise from 13 lakhs in 2015 to 18 lakhs in 2020. Around 60-70 percent cancer cases are in the age group of 35-64 years.

The cost of treating this dreaded disease can range anywhere between Rs 15 lakhs and Rs 25 lakhs, or even more, which makes it imperative to have an insurance cover. Since the amount of coverage provided by a normal health insurance policy is likely to be inadequate, many insurance companies offer stand-alone policies that cover all types of cancers.

health

Standalone cancer insurance plans are fixed benefit plans that offer lump-sum payouts at different stages. The sum assured for these policy starts from Rs 200,000 and goes up to Rs 50 lakhs. The term of the policy can range from five to 70 years. As these are pure protection plans, they do not offer any benefit in case the policyholder survives the policy term.

Cancer-specific policies cover different stages of diagnosis, be it minor, major or critical. They cover various treatments, including chemotherapy, radiation therapy, hospitalization, and surgery.

What is the treatment cost of Cancer and how to protect it Financially?

The three stages of cancer that are covered include Carcinoma in Situ (CIS) or the making of a tumour, minor stage, and major or critical stage. The pay-out happens depending on the stage the person is diagnosed with. Around 20-25 percent of the sum assured is paid out if the policyholder is diagnosed at an early or minor stage (the exact percentage varies from one insurer to another). If partial payment has been made by the insurer at an early stage, it is then deducted from the payment at the major stage. For instance, if 25 percent payment has been made in the minor stage, then only 75 percent of the sum insured will be paid at the major stage.

Pre-existing cancer is not covered by these policies. Certain cancers such as skin cancer and cancer caused by sexually transmitted diseases are also not covered by these policies. “Exclusions are important and those buying these policies should read the policy wording carefully,”

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Critical illness covers too provide lump sum cover for a number of critical illnesses, including cancer. But they don’t cover all the expenses incurred during cancer treatment. They pay only a pre-defined amount upon diagnosis of any critical illnesses listed in the policy document. If you have a mediclaim policy, it will pay for the cost of treatment up to a certain limit. On the other hand, these standalone cancer covers will pay a pre-defined amount on diagnosis of the disease, and at a couple of other stages, which you can use for treatment and meet various other expenses that may arise.

A health insurance policy provides cover for hospitalization expenses, but there are always several additional expenses that are not covered. These cancer plans act as a supplementary cover in addition to the basic health insurance plans. “If one is at an average risk of developing cancer depending on one’s family history, one should have a standalone cancer product. But one should remember that a cancer plan cannot be a substitute for a basic health insurance policy,”

On diagnosis of cancer, future premiums are waived off. One can also claim tax benefit under Section 80D on the premium paid. The premium for this cover is calculated based on the sum assured, policyholder’s gender and age, term of the policy, existing health issues, and family history. A person is not covered if he has already got cancer due to the risk of recurrence.

 

What is the treatment cost of Cancer and how to protect it Financially?

In 2015, about 90 million people had Cancer and 8.80 million deaths occurred due to this dreaded disease which is also the second leading cause of death globally. According to World Health Organization (WHO) nearly 10 Lakh new cases are reported every year in India. Unfortunately, nearly 5 Lakh people annually die in India due to cancer and this number will go up and projected to raise five folds by 2025, according to WHO.

During 2016, estimated 1.5 lakh new breast cancer cases have been registered (over 10 per cent of all cancers) in India. Breast Cancer is the number one Cancer followed by lungCancer with estimated 1.14 lakhs cases, according to a premier medical research organisation in India.Cervix is the third most common cancer in India with estimated 1 lakh new cases reported in 2016 according to The Indian Council of Medical Research (ICMR).

The alarming statistics above can make any one depressed and anxious but the fact is that Cancer is now a common disease globally and different types of cancer are being diagnosed every day.

costs

What is the treatment cost of Cancer?

The treatment of Cancer is spiralling with discovery of new drugs and technology. As you may know, in India, the cost is so high that it may wipe out the entire savings of the family and thus ruin the financial future of the family.

In a Cancer treatment, it is next to impossible to put up a cost rate because every cancer case is different.

Difference arise from the organ affected  ( Primary organ and secondary organs that cancer has metastated to ) Further, the mode of treatment and drugs usage changes as per stage of cancer. Hence, the closed estimate of treatment can be provided only after evaluation of your medical reports like CT scan,USG,Biopsy reports etc..

However, there is a way by which you can protect this – the answer is Cancer Protection Plan offered by life insurance companies. But before we discuss that, let us see some example of the tentative costs involved (it may vary from one institute to the other) in treatment of Cancer.

The cost of treating cancer may range from Rs 5 lakh to Rs 25 lakh approximately in six months’ time frame depending upon the stage of diagnosis. Also, people diagnosed with cancer may not be able to continue with their routine income-earning job which may result in loss of regular income.

  • Breast cancer surgery can cost Rs 3,00,000 to Rs. 5,00,000
  • Chemotherapy – The cost depends on the drug applied and the number of sessions. Approximate cost can vary between 50,000 – 100,000 for each session
  • Radiation – This therapy can cost Rs 150,000 – 250,000 per cycle
  • A PET-CT Scan can alone cost Rs 25,000 – 40,000

Source: For costing

Cost of Cancer Treatment in India for all major cancers

How to protect oneself from Cancer

If you have a regular health insurance plan or mediclaim insurance, it pays for the hospitalization cost upto the extent of the sum assured taken. Also, if you have taken a critical illness rider, the life insurance company pays the rider amount immediately on diagnosis of the disease without submission of any bill.

However, as you have seen, the cost of Cancer treatment is so high that, a regular health plan may not be enough to recover the entire treatment cost. Likewise, the coverage in a critical illness rider policy is limited and if you add that too, still it may not be sufficient to recover the entire treatment cost involved for the prolonged period.

The Best Health Insurance Plan for the Diabetic Patients

The answer lies in taking a cover exclusive to Cancer – The Cancer Protection Plan.

How the cancer Protection Plan works

Cancer Protection Plan is normally offered between age 18 to 65 years and it can be taken for 10, 15 or 20 years or 80 year minus age at entry. Sum assured taken can be from 10 Lakhs to maximum 40 Lakhs.

Cancer Protection Plan may come in many variant. For example – Lump sum cover and Lump sum cover with income benefit. In ‘Lump Sum Cover’ the fixed payout is made on diagnosis of cancer and in ‘Lump Sum Cover with Income Benefit’, one can receive a fixed percentage of the Cancer cover amount monthly for few years,over and above getting the lump sum amount on diagnosis of Cancer.

The other benefits of Cancer Protection Plan are that premium for these plans are generally low and in most cases medical examination is not required.

Our country continues to be one of the most under-penetrated in the world, as far as taking health protection plans are concerned. Not even 1% of the total population is insured for health coverage even though there has been a growing awareness of health insurance products. Since Cancer treatment is long-term in nature, it also translates into a recurring expenditure and loss of pay due to a prolong absence from work. This is the reason why one must have a Cancer Protection Plan exclusively over and above the regular health plan.

Even though Cancer is dreaded and the treatment can be prolonged, a Cancer Protection Plan can help not only fight with Cancer but also helps to protect your life’s savings.

 

 

 

(Insurance is the subject matter of the solicitation. For more details on the risk factors, term and conditions please read sales brochure of the respective companies carefully)

 

Source : Priyanka Chakrabarty

 

Why do I need a personal accident Insurance Policy?

These days due to increasing number of vehicles in the country, the number of accidents are happening. Life is capricious or uncertain. Anything can happen to anyone at any point in time. People purchase insurance to protect themselves financially against such unfortunate events. A good insurance portfolio ensures that all eventualities cover you or your finances. Life insurance proceeds will ensure that your family achieves the financial goals in your absence. A health insurance plan will provide quality health care for you and your family. Many people of us are inclined to feel that if we have adequate life, health or critical insurance, your finances are protected.

What about an accident or an illness that causes total or partial disability, which in turn compromises your ability to earn income at the level before the accident. Life insurance will typically not cover such a scenario. Health insurance covers only hospitalization expenses. You can see there is a gap, which is not covered. It is in such cases that a Personal Accident Cover can come in handy. Personal Accident Insurance plans offer limited coverage but are still better than nothing.Under your term cover, you might get the accident benefit rider on extra payment but it will mostly pay off in the cases of permanent total disability, thereby leaving all other temporary and partial disabilities. 

accidentAccidents are categorized as one of fatal health hazards worldwide. When this health hazard is put into the frame of a country where one person dies by accident every four-minute, it does require our attention. According to World Health Organization (WHO) report, about 12.5 crore people die every year due to accidents and between 200-500 crore sustain injuries.

A personal accident policy covers death, permanent total disability, permanent partial disability and total temporary disability due to an accident. First of all, these events have to happen in an accident. If the insured person dies or gets totally or partially disabled through a natural illness, such disability (or death) will not be covered under a personal accident policy.

If one day on your way back home you meet with an accident which may leave you paralyzed for life? It is scary. But, this can happen and might leave a long-lasting impact on your life. With lives lost daily and injuries rising rapidly due to accidents, we come across many cases of permanent total or permanent partial disability. A personal accident cover helps in such a scenario by providing coverage for disability, which is not typically covered under either life or health insurance.

personalWhat if you fall victim to temporary total disablement, how would you meet the income/Job loss caused by it. In such a case, your personal accident cover comes handy with income coverage part. This means, if for some time you are completely bedridden due to injury, you will be paid a certain percentage of your sum assured weekly to compensate the income/Job loss scenario.

When you are young, your chances of meeting with an accident are higher. According to WHO report, people aged between 15 and 44 years account for 48% of global road-traffic deaths; If this is just the data for deaths, imagine the rate of disability prone youth. Hence, it is always advisable to opt for a personal accident cover when you first start earning. The plan provides a considerable protection for a very low premium. While you get 100% payout in case of permanent total disability, in partial disability you get paid depending on the extent of the loss. For example; for the loss of an eye, the policy will pay 50% of the total coverage, for the loss of a leg it will typically pay 50-70% of the total coverage.

Say a strict no to Guaranteed Life Insurance Plans

Regardless of the fact whether you got hit by a two-wheeler or a four-wheeler, your personal accident insurance will cover even minor things like falling off a bike, among others. Not only this, even small injuries like broken bones, fractures, cuts, burns, etc. which do not require hospitalization, get covered under a personal accident cover.

The rule of thumb says you should go for a cover that is eight to ten times your annual income. The personal, emotional or mental trauma triggered by accident often leaves a permanent scar on life. Therefore, having a personal accident insurance can decrease that stress and can make your life a little less stressful. It can brace you from the financial hardships.

plan

The premiums for an accident cover are abysmally low. For a sum assured of Rs 5 lakh, your premiums can be as small as Rs. 600/- p.a. for death, total and partial disability coverage. This is probably equivalent to what you may pay for a meal for two when buying a food delivery app. However, we suggest that you should always buy a cover, which is at least ten times your annual salary. This is because your accident cover acts as your income in the event of death or disability. The product currently is an evolving one, and most insurers provide a protection of up to Rs 30 lakh online. The higher sum assured can be brought offline only.

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Personal accident cover is required only to take care of permanent disability (total or partial). Your life insurance, health insurance, and emergency corpus should take care of accidental death, accident-related hospitalization and temporary loss of income.

Permanent disability, total or partial, can compromise your earning ability. In fact, it can even add to your expenses. You may require domiciliary treatment (treatment at home), physiotherapy sessions or nurse support. No health insurance coverage will cover such costs beyond a point.

LIC CANCER COVER PLAN – REVIEW

LIC had launched its second health insurance related plan which is named as LIC Cancer Cover (Plan-905) on 14th November 2017. LIC’s Cancer Cover is a regular premium payment health insurance plan which provides financial protection in case the Life Assured is diagnosed with any of the stages of Cancer during the policy term. This plan covers both the early stage cancer and significant stage cancer.

It is an online health insurance plan which has low premiums, and it comes with some benefits and add-on features.

LIC CANCER PLANFeatures-

It comes with numerable benefits like lump sum benefit, premium waiver benefit, income benefit which would be paid till ten years every month, and many more.

  • This plan has one month grace period.
  • Loan facility is not available in this policy as the policy will not acquire any paid-up value or surrender value.
  • The term period of policy is 10-30 years.
  • Tax rebate available under Income Tax under section 80D for premium amount paid.
  • It comes with two sum assured plans, i.e., Level 1 and Level 2.
  • This policy is non-linked and regular premium paying health insurance plan.
  • Basic sum assured is between Rs 10 Lakhs to Rs 50 Lakhs.
  • Free look period of 15 days if the policyholder is not satisfied with terms and conditions of the policy.
  • The policy will lapse if premium not paid within the grace period, though it can be revived but within two years of first unpaid premium.
  • The policy can be bought through online on LIC website.
  • No third party agencies are involved in this policy.
  • Nominations are available in this plan.
  • Policy can be assigned under as per Sec 38 of Insurance Act 1983.

Say a strict no to Guaranteed Life Insurance Plans

Sum Assured Options-

  • Level Sum Insured

The basic sum insured will remain the same throughout the policy term period.

  • Increasing Sum Insured

The sum insured increases by 10% of basic sum insured each year for first five years starting from the first policy anniversary or until the diagnosis of  first event of cancer, whichever is earlier. On diagnosis of any specified cancer as mentioned above, all the claims will be based on the increased sum insured at the policy anniversary coinciding or prior to the diagnosis of the first claim and further increases to this sum insured will not be applicable.

Benefits-

  • Lump sum Benefit-
  1. Early stage cancer In this stage, the early stage cancer is diagnosed, 25% of sun insured would be paid immediately to be insured.
  2. Major stage cancer in this stage of cancer, 100% sum insured would be paid on being diagnosed.
  • Premium Waiver Benefit-
  1. Early stage cancer In this stage of cancer, first three years premium would be waived and later the premium payment to be continued.
  2. Major stage cancer In this stage, all future premium payments would be waived off.
  • Income Benefit-
  1. Early stage cancer benefit is not available.
  2. Major stage cancer In this stage, 1% of basic sum insured would be paid every policy month for ten years irrespective of the policy term, i.e., even if policy tenure is over, this benefit amount has been paid.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

  • Tax Benefit-

Tax benefits are available under section 80D of medical insurance but not under 80C as this is health insurance plan and not life insurance plan.

  • No Maturity and Death Benefit is available in this plan.

Eligibility Criteria for this plan-

LIC TABLEPremiums Payable under this plan-

For 20 years of term period and sum insured of Rs. 10 lakhs would have premiums accordingly:

  • Male whose age is 30 years For level 1 premium is Rs. 1,404 and for level 2 premiums is Rs. 1,841.
  • Male whose age is 40 years For level 1 premium is Rs. 3,044 and for level 2 premium is Rs. 4,224.
  • Male whose age is 50 years For level 1 premium is Rs. 9,936 and for level 2 premium is Rs. 14,101.
  • Female whose age is 30 years For level 1 premium is Rs. 2,856 and for level 2 premium is 3,953.
  • Female whose age is 40 years For level 1 premium is Rs. 5,546 and for level 2 premium is 7,753.
  • Female whose age is 50 years For level 1 premium is Rs. 9,900 and for level 2 premium is Rs. 13,476.

Waiting periods in this plan-

A waiting period of 6 months will be applied from the date of issuance of policy or date of revival of risk cover whichever is later, to the first diagnosis of any stage of cancer.

What are the Reasons Behind Most Women not Having a Health Insurance Cover?

Exclusions-

  • Any Pre-Existing Condition.
  • If the diagnosis of a Cancer was made within 180 days from the Date of issuance of policy or date of revival of risk cover whichever is later.
  • For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS-related complex or infection by Human Immunodeficiency Virus (HIV).
  • For any medical condition or any medical procedure arising from the donation of any of the Life Assured organs.
  • For any medical conditions suffered by the Life Assured or any medical procedure undergone by the Life Assured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug (except under the direction of a registered medical practitioner).
  • For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature.

 

DISCLAIMER

All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

What are the Reasons Behind Most Women not Having a Health Insurance Cover?

It is a matter of fact that there is still large gender gap in India between the ratio of men and women who have a health insurance plan. Even at present, women are far behind from men in taking a health insurance for themselves. If we take a look at today’s Indian society, women are taking and fulfilling almost equal financial responsibilities as compared to what men do for their families. According to a survey by a popular insurance company a few years back, only 10 to 15% of employed women have a proper health insurance plan.

There are many reasons why women are not taking a health insurance plan in comparison to men. Here are the points describing all possible reasons and how they can be settled.

Lack of Consciousness

Lacking or absence of consciousness is one of the major reasons behind women not tending towards health insurance. Most of the women don’t know enough about their options to buy any financial product. In some of the households, women are the sole earners of the family. So, women must have to be aware of their health condition and should choose an appropriate health insurance which will provide them coverage over any type of diseases or illness etc. and protect their families from the financial problems that can arrive through them.

Since many past years, medical costs are growing higher every year, so one should always be prepared for those situations because an unexpected illness or accident could void all your savings. A health insurance helps you to take care of yourself in the case of any hospitalization. It can share most of your hospital expense and can save you and your loved ones who depend on you by providing proper coverage against any disorder.

Health insurance

Depending on Employer’s Provided Coverage

Women employees have to realize that there can be a need of higher sum assured than what your employer is providing to your group as sometimes it can’t be enough depending on the situation. Also, there will not be any health coverage in case of quitting your job. That is why it is strongly recommended to have your individual insurance plan as the coverage provided by your employer or the company might not be sufficient in the case of any serious ailment or any critical situation.

Depending on Husband/Father

This is widely seen that even the women are getting financially independent, but the financial leader is still the men in their family. They have to work according to their husband’s family plan to protect themselves and their family. But sometimes husband’s plan might not be sufficient always. Women must identify their personal needs before deciding to take a separate additional policy. There are numerous insurance products customized according to the needs of women. For instance- specific products may provide coverage against breast cancer, which may be most beneficial to women than a single insurance providing coverage for all ailments.

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Disinclination to Pay Premiums

As we can easily see, most of the women choose to save money through the common mechanism as they depend upon the coverage provided by the employer or husband’s family plan to take care of the medical expenses. Even, some people consider the health insurance premiums as an unnecessary expense. Moreover, some purchase health insurance plans just for tax-saving motive. But this is not good at all and can be considered as foolishness. Taking a health insurance policy is as important as paying your house rent or daily expenses. Health insurance policies are not as costly as people think and can be easily maintained without shortening your investments and savings. A person of age 25 to 30 years can easily afford an insurance plan providing coverage of Rs.5 lakhs with premiums starting in the range of Rs.4000 to 5000.

Misunderstanding the uncertainty

When women are at a young age and having a very good health condition, they don’t think about the health risks they may face in the future. They never worry about having a serious disease/disorder or might face hospitalization due to some unwanted reasons. This applies not only for women but for men also in that age group. Although, facing a hospitalization in your age or gender is also very costly. And the only solution to save your savings, as well as investments, is to take an appropriate health insurance plan for you.

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Reason behind the rejection of claim

  • Lack of information on the proposal forms

The life insurance customers always make a common mistake that they hire the agents to fill the form on their behalf just because they find the form filling process very time to consume and complicated.

These agents may sometimes fill incorrect or incomplete information which will cause the rejection of your form. So, always fill your form yourself and recheck it after completing.

  • Not revealing (hiding) personal information

The personal information like age, occupation, family history, smoking habits, pre-existing diseases, alcohol consumption, details of other policy you are holding, etc. is vital to fill in the form for the insurance claim, which is used by the insurers to fix the premium. And if there is any mistake or conceal in this information, your form may get rejected.

claim

  • Pre-existing Diseases

If you have any of the pre-existing diseases and you claim for the insurance but do not reveal the fact of your disease in the form. In this case, your claim would get rejected as because it is essential to disclose certain facts in the form.

  • Settle the claims before the policy gets expired

It is essential to pay the premium on time so that your policy would be active. And if you fail to pay the premium, your policy will get expired and your claim would get rejected. So, to avoid the policy lapse, do not miss paying premiums on time.

Ways to settle your claim

 Go to the insurance company to resolve the claim

You can go and meet the Grievance Redressal Officer (GRO) of the insurance company and give him/her the complaint in written along with the required documents. And do not forget to take a written acceptance of the complaint with the date. Your complaint should get settled by the insurance company within 15 days from the filing of the complaint. And if the insurance company or the insurer fails to settle the issue within the mentioned time, you can approach the IRDA (Insurance Regulatory & Development Authority of India) Within the period of 1 year from the complaint filing date.

  • Register your complaint to IRDA

You can register your complaint via email to the IRDA ([email protected]) or you can mail or post your complaints to IRDA head office in Hyderabad. To register the complaint to IRDA, you should clearly specify the insurance holder’s name and address along with the name of the branch or office of the insurer against whom you have to file the complaint. And you have to state all the facts which give rise to register you a complaint. Also, required documents must be attached to the complaint. The nature and extent of the loss caused to the complainant and the relief requested from the Insurance Ombudsman (an official appointed to investigate individuals).

Say a strict no to Guaranteed Life Insurance Plans

The Ombudsman gives his advice or suggestion within one month if parties agree to conciliation; otherwise, an award is passed within three months from the date of receipt of all requirements from a complainant. Then the insurance company has only 30 days to observe the suggestions given by the Ombudsman. And if the complainant is not satisfied with the results, then he/she can go to the consumer forum.

  • IGMS (Integrated Grievance Management System)

Besides all the above solutions, the IRDA has a new system to resolve the issues of the policyholders and stated it as IGMS. The system can be used by the policyholders to register and track their complaint with both the insurer and the IRDA. You just have to follow these simple steps:

  • Go to the IGMS website (igms.irds.gov.in) and create a profile on the name of the policyholder for further registration of complaint.
  • Fill up the asked details about your issue with the insurer.

Then you will receive an email along with IRDA token number which will be used by the IRDA and the Insurance Company to track the complaint. After the confirmation of the process from you, the complaint would go to the insurer’s system as well as the IRDA repository.

After the insurer makes the resolution, if you are not satisfied with that, then your complaint would be sent to the IRDA for a review for a potential violation of Regulations through IGMS.

After this act, there may be a surety for the complete satisfaction from your side and may be all your grievances would get solved.

The Best Health Insurance Plan for the Diabetic Patients

In India, diabetes is one of the major health issues. Every 1 person out of 5 is suffering from diabetes. And this number is increasing day-by-day. The number of diabetic patients in year 1980 was 108 million and this number goes up to 422 million in the year 2014. It is being predicted that diabetes will become the 7th leading cause of death on a global level till the year 2030.

So, in the case of any emergency related to diabetes, health insurance will take care of you and your family after you. There are various health insurance plans for diabetic patients, so you need to select best out of it.

Unknown facts about Diabetes in India

  • There were approx 69.1 million cases of diabetes in India in the year 2015.
  • It has been predicted that, every 5th diabetic patient in the world will be an Indian by year 2025.
  • Our India is popular as the diabetic capital of the world having a 2nd position in the number of diabetic patients worldwide.
  • The number of death from diabetes in the year 2012 was 1 million.
  • In India, 87 million cases of diabetes by the year 2030 are being predicted by World Health Organization.
  • According to research, 1 out of 5 corporate workers suffers from diabetes or hypertension.
  • In India, a number of male diabetic patients is 13% higher that of the female.
  • The risk of contracting diabetes is 50% more for the people between ages of 60-70 years.

Age-wise Claim for DiabetesAge wiseState-wise Claim for DiabetesState wiseAfter a look at all these charts, you can see how this issue of diabetes is capturing the whole India. Now, it becomes must buy a health insurance plan for diabetic patients.

There are many companies in India which cover diabetes as a pre-existing disease in their health insurance policy which also includes specific health issues arising due to diabetes. But, maximum people are not aware of these policies.

Critical Illness treatments now in Installment/EMI form will be a mode of relief

Types of Diabetes and their policies

 1st Type– It is the type of diabetes in which the body stops producing insulin, which is very much needed to convert glucose into energy, and is known as insulin-dependent diabetes. In this type, the patient needs regular shots of insulin.

There is no policy which covers this type of diabetes.

  • 2nd Type In this type of diabetes the level of sugar (glucose) in the body goes higher than the normal and the cells of our body becomes insulin resistance and the amount of insulin produced is not sufficient.

Policies covering this type– Star Health Diabetes Safe, National Insurance Varishta Mediclaim, Energy Plan by Apollo Munich Health Insurance Plan.

  • 3rd Type– it is the type of diabetes in which opposition of insulin occurs in the brain and it is the type of Alzheimer disease.

Gestational diabetes

This occurs in a female at the time of pregnancy and if not cured, it gets converted to the type 2 diabetes.

Policies covering this type– Maternity benefit of health insurance policy cover this type of diabetes.

Premium amount for Diabetes health insurance plans

The premium amount for a diabetic patient is mostly higher than the normal premium amount because the risk is also high. The diabetic patient gets a higher chance of claim due to the frequent medical attention. So, always go for that policy which gives you maximum benefit at minimum cost.

Minimum premium amount of different policies (A person of 45 years of age and cover of 3 lakhs)Name of the policy newWaiting Period of the Plans

Each and every health insurance policy has its waiting period for which you can claim for your pre-existing disease. Waiting period varies from company to company, but mostly it is of 4 years. You should go for the policy with a minimum waiting period.

Protect a Lady by Gifting Health protection

Sum assured

Your conclusion to the sum assured should be based on your diabetes condition age, city, hospitalization requirement and the inflation rate of health care. Choose the best which offers you a wide range of sum assured.

Age & Cover for the disease arising due to Diabetes

Always inspect before your buy. Check the age limit of your health insurance policy. It should be flexible because flexibility in the age limit will allow you to get insured at advanced age also. It will also cover problems arising in other body parts due to diabetes.

Points to be remembered

Always try to buy health insurance as early as possible, especially when you have the medical history of diabetes.

  • Always get a specialized and specific plan which covers you from the inception of the policy.
  • Terms and conditions related to the policy are very important to understand.
  • In India, the number of insurance companies covering diabetes is very less but there are sufficient plans to choose the best one. Think, understand, insure, and then buy.

A WAY OF SUCCESS FULL FINANCIAL PLANNING

My years of practice as a financial planner, I met several successful from common person to  CEO’s MD’s  of the company’s business men ,respected intellectuals  in their fields earned millions of rupees but paid little attention to their financial planning. While analyzing their investment portfolio I observed some common mistakes people often commit. Some of the commonly committing mistakes I have narrated it below. If avoid these mistakes even a common person can make his financial planning successful to the large extent.

1. Setting financial targets

2. Importance of liquidity

3. Over exposure to either fixed income  or equities

4. Treating life insurance as an investment tool

5. Inadequate amount of health insurance coverage

6. Over weight to previous performers/ track record of the scheme

7. Exersing the option of selling

Setting financial targets :-

It is a first & most important step. It should be more realistic than dramatize. We need to consider many major & minute issues such as monthly income, monthly & annual fixed expenses, age, responsibilities, current life style & aspiration of post retirement life style, all such issues should co relate with present inflection & adoptive of future inflection also.

So for the better planning & implementation purpose target should divide in three phases that is short term, medium & long term goals. Periodical review & changes in goals after accomplishing the first is a better option & for these reasons policies have to be flexible & accommodative.

Importance of liquidity :-

Human life is full of surprises. How so ever people try to make full proof plan, destiny always has an upper hand & prepared to surprise us. To cope up with those surprises only available option with us is through contingencies plan by maintaining sufficient cash reserve or liquidity. I have seen people with good monthly income facing difficulties in just couple of months when they lose their jobs. Thanks to poor financial planning & thanks to credit cards as well which tempt people to reckless shopping.

Financial planning

Over exposure to either fixed income  or equities :-

It has been observed that people are either over cautious & skeptical or over aggressive in investment. Both things are not good. With over cautious approach people prefer fixed income options where return on investments are low. While second strategy of over aggressive in equity we carry excessive amount of risk which is just uncalled for. Instead of it there should be balanced approach. Decision about equity & fixed income investment depends upon many things i.e. age, income, financial targets, responsibility, risk appetite capacity etc.

Treating life insurance as an investment tool :-

Why people are so fond of insurance policies is a million dollar question now a days. Without accessing an amount of coverage required, without getting in to the schemes details people purchases those randomly purely as an instrument for the purpose of tax saving. But we forget the basis difference in two concepts i.e. purpose of investment is creation of wealth where as life insurance purpose is financial compensation from the life threats. Over exposure to any type of insurance policies are likely to the overspending on it than to receive from it.

Inadequate amount of Health insurance coverage:-

Similar to life insurance people in general are least informed about their health insurance policies. The way medical treatments cost is souring up in its proportionate amount of coverage should also needs to increase besides the age, medical history, hereditary, etc. but unfortunately neither at the time of investment nor at the time of its renewal we considers all these issues. As well as another blunder mistake in health insurance is family floater. If any one insured family member required expensive medical treatment then in that case other family members remains unprotected till the next policy renewal.  Option of Add on shopping is not supposed to apply in all areas & at least not in finance / insurance.  So better to have separate health insurance coverage for every family person.

Over weight to previous performers/ track record of the scheme: –

The concept is more related with market related investment instruments. Market dynamics because of industrial cycle, govt. Rules & policies, tax policies can affect or change the scheme/stocks future performance. So these things should also be considered while observing past performance. After all it does not give guaranty of future performance, so shall not over emphasis on past performance.

Exersing the option of selling :-

As the entry or purchase decision is important, selling of stock / units ( in case of mutual fund investment)  are equally important. Any market related investment be it equity or mutual fund, to book the profit / exit from the scheme or stock is equally important. In its absence that profit remains only on the paper. It is observed that people once invest in any stock or scheme remains invested, without keeping track record of their investment.

 

Critical Illness treatments now in Installment/EMI form will be a mode of relief

Over the last decade, the cost of medical treatment has grown at a rate of 10 percent.

Let us first understand the kind of critical illnesses that are covered by various insurance companies which are cancer, end stage renal failure, multiple sclerosis, benign brain tumour, motor neuron disorder, end stage lung disease, major organ transplant and heart valve replacement.

As per a WHO report published in 2014, heart disease was the biggest killer of people around the globe and in India too, where it killed more than 12 lakh people. It was followed by Lung Disease and Stroke which killed 1,061,863 and 881,702 people, respectively.

Cancer too is quickly emerging as a major cause of death among Indians with 548,015 cancer deaths reported in 2014. Among the different types of cancers, Oral Cancer is the biggest threat, followed by Breast Cancer. Diabetes, Liver diseases, and Kidney diseases also took more than 6 lakh lives in the India in 2014.

The below diagram states the estimated deaths per 1 lac people in the world according to World Health Organization :

Critical illness

This diseases are mainly caused due to the changing work patterns, long working hours, high-stressed jobs, junk food, smoking and alcohol, little or no exercise leading towards the so-called lifestyle diseases. The traditional health policies pay for hospitalization and domiciliary expenses and certain critical illness policies provide coverage to only a few critical illnesses. Therefore this leads to less adoption and ignorance towards opting for such health insurance policies.

The differences between a regular Health Insurance policy and Critical Illness policy offered by Insurance Companies are as below:

Differencr between Health insurance and critical illness

As per IRDA (Insurance Regulatory & Development Authority), India still continues to have the highest levels of under-penetration of health insurance and med claim in the world, with only 0.16% of the total population insured for health. Little wonder then that 70% of healthcare expenses are met from one’s pocket. This healthcare expenses cause greater financial burden on the family, more chances which lead deaths due to untimely treatments, high stress levels on the family members, etc.

The below diagram shows the approximate cost of medical treatments of the critical illness diseases :

Rising cost of medical Treatments

Therefore, such higher cost of treatments can be relaxed by designing products which can offer Installment/EMI option facility which are tied up with the hospital & insurance companies. The way the installment can be routed is through a credit card in which an empaneled list of hospitals is provided to the credit card holder. The patient has to inform the Center for the drug or medical service to be undergone and its confirmation for opting EMI facility thereby to finance the necessary formalities.

The advantages of such plans provided by hospitals & Banks will hence lead to deferred financial burden, more effective treatments with no waiting period leading to savior of deaths, assigned payment period from (3– 60) months period based on the financial profile and the debt paying capacity of the borrower, no lump sum cost to bear, inducting knowledge towards adopting health insurance policies at earlier age etc.

Thus in my opinion, a country where poor and low income groups still qualifies for more than 80% of the population in the vast majority of India’s 1.2billion citizens such medical plans will add to the convenience, savior to life and a mode of relief to such income groups.

Protect a Lady by Gifting Health protection

It say’s “Family, Nature & Health all go together”, the three things which matter the most in an individual’s life especially in a women’s life who is gifted with inborn qualities of being kind, nurturing,brave,perfectionist,vivacious but at the same time she is delicate, sensitive who requires special care in her hectic lifestyle.

As per IRDA (Insurance Regulatory & Development Authority), India continues to have the highest levels of under-penetration in the world, with only 0.16% of the total population insured for health. Little wonder then that 70% of healthcare expenses are met from one’s pocket.

According to the 2015 survey by insurer ICICI Lombard, only 39% of the women are covered by proper Health Insurance. This also pointed out that women were prone to an increasingly succumbing to chronic ailments like anaemia, metabolic disorders, arthritis and cancer as compared to men. Of the 39% women who were covered, only 22% purchased policy by themselves while a large share around 63% was owned through husband or father with the rest sponsored by employer.

With the Government Program Initiatives like Indira Gandhi Matrtiva Sahyog Yojna, Indira Gandhi Maternal Relief Scheme etc., which has almost doubled the budget from Rs.230 crore to Rs.400 crore which compensates women who don’t receive maternity leaves. This initiatives gives relief on the monetary portion for a specific period at a later stage. But it does not relieves on huge initial costs like hospitalisation expenses, medicines cost, routine check-ups etc. which hence should motivate a women to attain a health insurance policy to protect against the initial monetary burden of the disease.

In low and middle-income countries like India which has 72.2% of village population, many deliveries occur at home without the assistance of trained attendants which increases the infant & maternal mortality rate. This is purely due to bad hygienic conditions, less infrastructural facilities, lower income, safety issues, less trained professionals etc. By protecting women by health insurance which compensates 50% of the monetary costs, women with less income will be facilitated to avail better facilities which will protect its overall primary health care.

In the current scenario of mental stress where a woman is demanded with multiple roles in her life being a supportive wife, a caring mother, a successful corporate leader or a successful businesswoman leads to increase in illness like Polycystic ovary disease, osteoporosis, Blood Pressure, Diabetes, Cancer at an age as early as 25 years and surprisingly less than 0.1% of the people opt for any health insurance facility at this age. Hence, this can be solved by availing a health insurance policy at an early age to benefit with maximum coverage and include critical illnesses which are not covered at later stages of age.

An illustration given below shows you the difference in medical premium between Family Floater or Individual Plan in accordance to the age of the family members.

Health Insurance

Source: Insurance Companies

This shows that a family floater plan will cost more with less coverage of illness vis-a-vis separate individual plans which customise as per your eligibility and requirements.

Therefore, to conclude it is of utmost importance to insure your health along with climbing up the pyramid in this challenging role of life to have a Wealthy and Healthy Living.