During our working years, it is very rare that we think about our golden years. Even if we do, it is more from a glorifying perspective of how we would joyfully spend time doing the things we always wanted to do. It is seldom that we think of our possible illnesses and the associated medical expenses when the going is good.
Hence, often employees with group insurance health plans never consider buying individual health plans. It should be from the perspective of having comprehensive coverage post-retirement. Here are reasons why availing of a health insurance plan during the early years makes ample sense:
Lower premiums and better coverage than senior citizen plans
Availing of an individual health insurance plan while you are younger would command much lower premiums. The coverage can be designed such that it is comprehensive.
In comparison to the senior citizen plans, individual health insurance plans would offer the same coverage. It will be at very competitive rates with a wider range of coverage.
Better health and coverage for pre-existing diseases:
During our younger days, we are likely to be healthier this will also reflect in the premium quote for the health plan availed. If you had availed an individual health insurance plan and on an ad-hoc basis develops a lifestyle illness; then the possibility of coverage of such illness becomes easy. It is covered if after a waiting period insured person develops some illness; as compared to availing a senior citizen plan and expecting the insurer to cover pre-existing diseases at competent rates. Thus, when the policy is issued, all health risks are transferred to the insurer and
Hence, an individual health plan which is customised to your specific needs should be availed in parallel to the group insurance scheme. It can be done so that your coverage is wider when you actually need to raise a claim. Ideally, you should opt for a health plan with a higher sum insured and no disease-specific limits or room rent capping to get complete coverage.
Enhancement of cover due to no-claim bonus:
By availing of a health insurance plan during your earning years, you are not only covered comprehensively against all types of health risks but would also enhance your coverage substantially due to the no-claim bonus feature. It is available in personal health insurance plans.
When you hold a group insurance with health insurance policy, you are likely to claim from your group insurance policy first. Any uncovered amount can be claimed via a personal health insurance policy. There may be many years when there are no claims on your health policy. But there is no benefit of a no-claim bonus in a group insurance policy.
Both individual health plans, as well as senior citizen, plans have the no-claim bonus feature. This enhances the sum insured for every year without any claim. This is however subject to a maximum limit of the sum insured for the type of plan chosen. Since quite a few individual health plans offer the benefit of restoration of the sum insured, there is an enhancement of coverage as well; which again is not available with most senior citizen health plans.
The enhancement of coverage in a regular indemnity health plan is usually higher than in a senior citizen health plan. The enhanced coverage can come in handy as you age, and the probability of illness increases.
The waiting period is already taken care of:
Availing of health insurance plans while you are young is advantageous from the perspective of a waiting period. Typically, coverage for pre-existing and specific illnesses can have a 2 – 4 years waiting period.
By availing of an individual health insurance policy while you are young, the waiting period is already taken care of. During your old age, you can enjoy comprehensive coverage. This is also the age when you need comprehensive coverage even more.
Having to wait for 2-4 years when you avail senior citizen plan could cost you money in the event of unforeseen medical expenses.
One of the biggest advantages of group insurance health plans is that there is usually no waiting period. Hence, when you avail yourself of individual health insurance, it may seem like a novel concept. As long as you are employed the extent of coverage is applicable. So, when you actually need the coverage, i.e. post-retirement life, your coverage might not be available. Hence, it makes a lot of sense to opt for a high coverage at a younger age which can be continued lifelong.
Optimal tax benefit during earning years:
If you have a group insurance scheme, where the premium is paid by the employer, you will be unable to claim tax benefits under section 80D. However, any premium paid towards health insurance for yourself, your family can be claimed as tax benefit up to Rs. 25,000 for all types of health plans. The limit is Rs 50,000 for covering senior citizen parents.
Thus, any premium paid towards your dependent parents’ medical insurance can also be claimed as a tax benefit under section 80D. The overall outgo of the premium net-off tax benefit would thus be much lower as this is a sort of unexpected discount by default. Hence, making it a feasible proposition to have individual health.
An individual health plan availed during your earning years can help you avail the extended benefit of health insurance coverage during your golden years. This is one of the many ways to ensure that you lead a stress-free retirement life. To know more about such plans, visit https://www.oneassure.in/