In current times of high medical inflation rates, failing to hold adequate amount of medical insurance cover can prove to be a major personal finance disaster.
This could lead to either poor health care because of non-affordability or spiral an individual into financial distress due to high medical bills. There are two common mistakes when it comes to buying insurance.
People don’t act at the right time, and when they realize that they have made a mistake they try to over-compensate by buying too much insurance.
Majority of employees are provided medical insurance cover by their organizations and are increasingly dependent on it.
However, they often fail to assess their requirements and don’t realize the benefits. Such medical insurance policies lapse once you leave the organization.
A potential job change, job loss and retirement are situations when an individual faces a no insurance condition. A personal medical insurance cover is valid as long as the payments are made.
The basic medical insurance provided by most organizations might cover individuals from minor ailments and provide a decent amount of coverage.
However, this amount might often be insufficient in case of a major emergency. It is important that individuals prepare themselves for such major contingencies and make a provision through adequate insurance cover.
The validity of the medical insurance cover provided by the organization is connected with the time span of your association with the organization.
The premium is lower on medical insurance when you are younger and the policy offers comprehensive coverage in comparison to a policy purchased at an older age.
As an individual grows older, the cost of the cover increases and if one develops health issues, the insurance company tends to exclude pre-existing conditions which defeat the whole purpose of buying a medical insurance.
Most medical insurance companies have an upper age limit for the policies. One can enjoy the benefits no claim benefit if they renew the policy without any claims.
The icing on the cake by opting for a personal medical insurance policy is the tax benefit. Payments made towards premiums are eligible for tax deductions.
However, it should not be the driving force behind making the decision of taking a personal medical insurance policy.
The need to improve risk management should be the driving force behind opting for a personal medical insurance policy.
One should scientifically calculate the amount of insurance required with the help of a proficient financial advisor and make sure that they are adequately covered.
Curated from Importance Of Personal Medical Insurance