Thursday, November 27, 2014

Health Insurance : Myths and Facts

Health Insurance: Myths & Facts


All of us know very well about the importance of health insurance. Today, everyone realize the benefit and need of having health insurance. For sales points of view it is very easy product which can be offer to the clients by the non life insurer. I have also written many blogs about it. Yesterday, I came across very useful information in the news paper which I want to share with all of you. A very well known insurer called ICICI Lombard has conducted the survey about health insurance. According to this survey that people have many misconceptions about health insurance which we will be discuss in today’s blog.

Myth1:
52% people believe that health insurance policies settle the claim only in case of hospitalization.

Reality:
9 out of 22 non life insurance companies offer OPD benefits, including dental treatment, diagnostic test expenses, vaccinations, hearing aid, eye check up, spectacles and preventive health care services.

Myth2:
27% people said I don’t need health insurance if I am fit.

Reality:
Many illnesses like dengue, malaria, food poising and critical illness can happen in healthy people due to hectic life style and pollution. Health insurance also covers injuries due to accident or violence.

Myth3:
29% people said that they have group health cover. So they don’t need a separate health insurance policy.

Reality:
Due to increasing medical cost day by day, group cover may not be enough in case of medical treatment. In case of job loss, you will need the cover. The group health insurance policies have some defined limits and constraint.

Myth4:
49% people was not sure in survey whether they can get health cover or not as they smoke or consume alcohol.

Reality:
Insurance companies offer health insurance to these types of people. In these cases loading increase the premium can be higher due to high risky habits.

Myth5:
26% people do not intend to cover their family as they think that only earning member need the health insurance cover.

Reality:
Unlike life insurance, health insurance should cover the entire family including children and parents of the customer.

Myth6:
Pre- existing diseases will be covered after waiting period so no need to declare in the proposal form.

Reality:
As per IRDA guidelines, any ailment not declared by a customer is considered an un-disclosed pre existing disease and it leads to claim rejection.

If you want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for seminar in your city just drop the mail.

Warm regards,
Arvind Trivedi
Certified Financial Planner

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