Indians are usually cost-conscious people and choose to buy things only when they truly feel the need for it. Life Insurance, despite its criticality, is something that a lot of Indians have an aversion to. Thankfully, this scenario is slowly changing. However, when it comes to buying a health or accident insurance policy, people still consider it to be a waste of money! If you too share a similar sentiment, then this article is a must-read for you. Read on to know whether you should really get yourself an individual or family floater health insurance.

The main purpose of health insurance is to safeguard yourself against the onslaught of heavy medical expenses like the ones associated with surgery and hospitalization. The cost of medical treatments and procedures can, at times, turn out to be unpredictably exorbitant; and without health insurance, one could end up shelling out their precious savings.

Apart from the 'seemingly high' premium payments, health insurance cover provided by employers is another key reason why individuals abstain from health insurance policies. If the health cover that you have is provided by your employer, do bear in mind that you may or may not be having sufficient coverage for yourself and your family. So do consult with the concerned department in your company to get clarity on the health insurance benefits you enjoy as an employee. Another factor to consider is that the moment you move out of your company, or retire, you lose all the health cover benefits. So it is always advisable to have your own health insurance plan or a family floater policy. If you depend solely on your employer-provided insurance during your working years, you would need to apply for a fresh health insurance policy after retirement. And there's a possibility that the insurance company rejects your application (for medical reasons) or charges you much higher premium for the medical condition you may have then. Also, a new health insurance may not cover existing diseases for a certain period of time. So, with health insurance, it is always better to start early rather than be sorry later.

For discussion's sake, presume that you are a middle-aged, married person having no health insurance coverage to fall back on. In the event of a severe illness (of any family member) leading to hospitalization, you may have to bear the entire cost of treatment from your own funds. If the expenditure runs into a couple of lakhs, then you could end up spending a major portion of your savings clearing the hospital bills. And, if there are no savings, you could end up in debt. But if you had already taken a health plan for an annual premium as low as Rs. 5,000, you may be able to salvage your savings.

You could check out the Kotak Health Care plan, which helps ensure that you and your family are well-protected and insulated from the financial shock of a medical emergency. The following are the benefits you would enjoy with Kotak Health Care plan:


In-patient Treatment:

In the event of in-patient hospitalization, this health insurance will cover the medical expenditure resulting out of an illness or injury for a minimum period of 24 hours.


Pre-Hospitalization as well as Post-Hospitalization Medical Expenses:

Medical expenditure incurred 30 days before hospitalization and 60 days after hospitalization will be covered. Other features such as Ambulance cover, Free annual health check-up, Cumulative Bonus and Cashless settlement are also provided.

Just like health insurance, an essential cover to have in today's time and age is Personal Accident Cover, which covers not just death by accident, but also partial or permanent disability caused due to accident. There are life insurance policies that come with riders offering benefits similar to Personal Accident Cover. But before opting for them, do take time out to understand their specifications, because they could be restrictive, providing only limited coverage.

The premiums of accident insurance policies are not age-dependant but may vary with the risks related to your occupation, avocation or past history. The best part is that Accident Cover is the cheapest type of insurance as premiums are the lowest in this category. So there's no reason why you shouldn't have it.

The Kotak Accident Insurance not only protects you and your family from the financial instability caused due to death by accident but also covers physical disabilities caused due to the accident. The following are its benefits:


Accidental Death Coverage:

In case of death of the insured person due to accident, the entire Sum Assured is paid to the beneficiary.


Permanent Total or Permanent Partial Disability:

If the insured is permanently disabled whether totally or partially due to loss of sight, hands or feet because of an accident, then the entire Sum Assured or a certain percentage of the Sum Assured is paid out, depending on the severity of the disability.

The Pradhan Mantri Suraksha Bima Yojna is a useful scheme that provides accident insurance coverage. The following are the features of this policy:

  • Savings Bank Account holders between 18 years (completed) and 70 years (age nearer birthday) can enrol for this scheme.
  • Policy cover shall commence from the first day of the month subsequent to the month in which premium was paid. The policy expires on 31st of May each year and has to be renewed thereafter on a yearly basis (June to May).
  • The annual premium of Rs. 12 is auto debited from customer’s account.
  • In case of Accidental Death or Permanent Total Disability, the sum assured is Rs. 2 lakh and for Permanent Partial Disability, the sum assured is Rs. 1 lakh.

 

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Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Kotak Mahindra Bank Ltd. and its employees.