Health insurance exemplifies a pre-planned effort for risk mitigation and safeguards oneself from unplanned medical expenses as spelt out in the policy. An insurance policy is a product that you need to buy from the sellers of insurance, commonly referred to as insurance providers. The policies cover the expenses for pre-specified medical conditions.

The buyers purchase the policies through periodic payment better known as premium that continues for pre-set time duration. Usually, the individuals purchase the health care insurance but in some countries, the citizens are offered the same by the government.

History of Health Insurance

It was 1850 when the first health insurance policy was made available to the mining and railway workers in the form of accident insurance. Under the provided coverage, the workers were prevented from having to incur cost for medical service in the event of an accident.  This first insurance product gave rise to a variety of modern insurance plans each of which is aimed at protecting the buyers from havoc medical costs for the illness as specified in the policies.

Insurance is a common purchase throughout the length and breadth of the world. Most of the people are aware of the benefits they can gain from purchase of insurance. However, all of them might not be familiar with insurance jargon frequently used in the policy agreement or by the insurance companies or their agents. So, before you shell out money for a product buy, you need to familiarize yourself with the different terms pertaining to the cost and benefits. Let us describe them one by one.

Coverage: This refers to the maximum benefits provided by the insurance companies for the well-being of the purchasers.

Premium: This is the amount of periodic installment made by the insurance purchasers to the companies for the coverage included in the policy.

Deductibles: This is what the insured is obliged to pay before insurance seller starts paying expenses in an annum. This might be a flat sum which the insured individuals have to spend before they get coverage for expenses. Co-Payment is a related term in this context. The insured are to pay this amount as a part of their visiting a medical professional. The insured pay for the sum out of their own pocket.

Comprehensive and Scheduled Insurance: Under a comprehensive insurance plan, medical cost is borne by the company only after the insured pay for the deductibles. Usually, catastrophic events and day-to-day expenses are covered under such policy. Scheduled policies pay for the cost only up to a limited extent as clearly written in policy agreement. Due to their restricted nature in terms of coverage, scheduled insurance plans are often considered to complement the comprehensive insurance policies.

What Is The Importance Of Having Health Insurance?

It is unfortunate that many people are yet to fully understand the importance of having a medical insurance. Even though the number of insurance purchasers is increasing every year, once a policy is bought, it is forgotten as they get busy with day-to-day work pressure. It is high time for us to be aware of the important role played by health care insurance in our daily life.

Insurance is a kind of risk-mitigation designed to protect you from medical expenses that are not planned and arise due all on a sudden. The insured can claim for monetary aid for the pre-specified illness and thus, are protected from baring their wallet. Different types of health insurance schemes are available but all of them have a basic objective and that is to protect the insured from having to bear medical expenses.

Let us take a more detailed approach towards the importance of health insurance:

It is unlikely that you won’t have to visit a doctor’s chamber for medical treatment or regular check-up. Even though you might not need frequent visit, medical cost is expensive and you have to bear it. A single visit may set you back by a few dollars and remember those extra bucks for medicines. The middle class people find it nearly impossible to afford the cost of medical bills, let alone the poor income groups.

Having health insurance is a good relief that you won’t have to pay anything out of your pocket if emergency crops up. Payment is made through a periodic installment that builds up the fund for your protection.

Health insurance is about leading a healthy a life without spending even a dollar out of pocket. Most of the people look for health insurance only when they are in trouble. But if you know how much important it is to get insurance coverage, you might think about buying a policy much before occurrence of any unforeseen hazard. It is a safeguard to protect the insured from having to pay for the bills should medical emergencies suddenly befall them.

People are getting high-end medical care; there is no denying this fact. But high-end treatment does not come at pocket-friendly price. Future is so uncertain that you can’t predict if or when you have to be hospitalized. Even if it is not you, it might be any of your family members requiring medical attention.

These days, hospitals are ensuring top-notch medical service. But that does not come at a pocket-friendly cost. The first thing you need to assess whether it is possible to afford such top-notch medical attention without any insurance support. Future is unforeseen and no one knows when he/she will be a victim to illness or accident.

With the right kind of insurance policy, it is possible to obtain adequate coverage as might be required by you. Customized insurance plans are much in demand as they cover diverse needs of the individuals. Make it sure that you deal with a reputed insurance company while buying a health care policy.

Health Insurance Basics – Tips For First Time Buyers

It is a tiresome and troublesome work to get a health insurance plan, if you are a first time buyer. To make your work simplified, familiarize yourself with available health insurance plans, at least what the top-rung companies offer. If you know the extent of coverage provided by them and have a better understanding of your requirements, it will not be a daunting task to make an informed choice even though there are a plenty of offers all around. Have a quick look at the following tips that guide the first-time insurance buyers to get a plan that fits their needs.

Short-Term or Long-Term Plan

This is the first thing you should consider before buying a health insurance policy. Are you employed? If not but there is a chance of getting a job within next two or three months and your employer will provide a group health insurance policy, short-term policy may be the right thing for you. Most of the employers include new employees in group health insurance after they complete six months in a company.

Basic & Comprehensive Health Coverage

Basic health insurance policies provide coverage for out-patient surgery and in-patient admission to a hospital or nursing home in the event of fatal accidents or emergencies. These schemes fit those who are in need of coverage only in times of grave injuries or illness. Premium is generally lower for these policies.

Comprehensive health care policy works best for those with a history of recurring illness that require medical treatment. This policy is sort of a pro-active measure and covers hospitalization, out-patient surgery, Dr’s visit and prescription. Monthly premium is expectedly higher but the plan comes with lower co-pay for a doctor’s visit.

Classification of Health Insurance Plans

Health insurance plan can be classified into different categories depending on some crucial factors. On the basis of timing, it is of two types, short-term and long-term health insurance (already discussed above).

Then there are individual and family health care plans. The terms are self-explanatory. Family insurance plan provides coverage to more than one person and so goes well with a family guardian or head. Though monthly premium is higher, it is ultimately a cost-effective choice in view of what you will be getting for all the members in your family in a single policy.

There is another classification that categorizes health insurance plan into two types, indemnity and managed-care plans. The mode of bill payment, expenses and ability to select a health insurance company are some of the factors that distinguish these two types of health insurance. With indemnity, you will get a wider choice whereas in case of managed-care plan, out-of-picket expenses will be smaller and also minimal paperwork is required.

Selection of a Company

The potential borrowers are repeatedly recommended to deal with only a reputed health care plan provider; otherwise, they may end up paying a higher premium and even hidden charges in lieu of a limited amount of coverage. Shop around or search the internet, you will get what provides the best health care.

How to Claim Tax Benefits on Premiums Paid for Health Insurance

Health insurance policies have become the need of the hour. With soaring medical inflation, it can be financially draining to fund a medical emergency from your hard-earned savings. That’s where a health insurance plan comes to the rescue, eliminating any financial worries for medical treatments. These health covers are not just handy for an emergency situation, but also in cases of planned medical treatments. Further, instead of paying the entire medical bill, it is affordable to pay a small sum periodically to ensure financial coverage for treatment.

But apart from the financial benefits of health insurance plans, they also provide tax benefits under Section 80D of the Income Tax Act. Thus, premiums paid for insurance plans can be availed as a deduction on your return of income. This benefit is not limited to any specific type of health insurance policy, but for all types. Whether they are individual plans, family floater policies, critical illness plans, senior citizen plans, top-up covers or any other type, the tax benefits can be availed for all.

Tax benefits for premium paid for your parents

When health insurance premiums are paid for parents, whether dependent or not, the Income Tax Act allows a deduction of the premium under Section 80D. This amount of deduction is decided based on the age of the beneficiary. If the insured individual is over the age of 60, that person is classified as a senior citizen and the deduction amount is up to ₹50,000. The same is capped at ₹25,000 if the person is below 60 years. Remember tax benefit is subject to change in tax laws.

Tax benefits for premium paid for self, spouse, and children

A deduction is allowed under Section 80D of the Income Tax Act when you pay health insurance premiums for yourself, your spouse, or your children. Again, the capping on the amount of deduction is based on the age of the beneficiary. For instance, if all beneficiaries are not senior citizens, the deduction can be availed up to ₹25,000. The same deduction caps at ₹50,000 if above 60 years.

The table below summarizes the deduction amount and the maximum deduction that you can avail:

Apart from the above deductions, an internal sublimit of ₹5,000 is available for health check-up facilities. Note that tax benefits are subject to changes in tax laws.

How to claim tax benefits for premium paid for your health insurance cover?

It is a straightforward process to claim the deduction of any premium paid on your income tax return. You need to have a payment receipt for the premium paid. When filing your income tax return, under section 80D, you need to enter the details of such premiums paid for yourself, your spouse, children, and parents. Based on whether the beneficiary is above or below 60 years of age, the amount needs to be entered in the appropriate field. Once these amounts are validated by the tax filing utility, you can avail the necessary deduction on your return of income. Remember that tax benefits are subject to changes in tax laws.

With these benefits of health insurance apart from financial cover, it serves in dual capacity—one as a financial shield and the other as a tax saving tool. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Why You Should Consider Switching Health Insurance

Long wait times to speak to actual humans, small annual limits and exorbitant annual rate rises are just some of the reasons why many Australians question the value of their private medical cover. Perhaps you just got a very small rebate on a consultation or you simply do not use your extras cover. If this is you, it may be time to switch your health insurance cover. But what is the best health insurance in Australia? Overall, it will largely depend on your own circumstances, but in short, it is a level of cover that works with your lifestyle.

See below for our tips about the important things to consider when you’re reviewing your health insurance.

Bigger is not always better

Be aware that even the highest levels of private hospital insurance will not provide rebates for all procedures, consultations or surgeries. A procedure like labiaplasty is unlikely to be covered if it’s undertaken for purely cosmetic reasons for example, so shop around to see exactly what you will receive in benefits and rebates even on the highest level of cover. On the topic of benefits, if you’re considering switching cover, check to see if any additional waiting periods or restrictions of benefits will apply when moving funds or changing your level of coverage. It may mean planning the timeline in which you switch to avoid missing out on rebates you would have otherwise received. Another factor to be mindful of when switching, is whether any excesses for private hospital stays will reset from when you sign up to a new fund by calendar year, or by financial year. It’s frustrating having to pay an excess for a private hospital stay if you are just outside the period in which your limits have reset.

Tax time

Remember, if you earn over a certain amount you will need to pay the Medicare levy surcharge. So if you are dropping down your cover to save money, it might be the most cost effective to dial down the extras, as you need private hospital cover to avoid the surcharge. In other words, come tax time you will get less back in your return if your earn over 90k for singles and 180k for families, as a percentage of your taxable income will be subject to the surcharge on a sliding scale if your cover is inadequate.

Family

Your relationship status is also cause to review you level of health cover. When you have a significant other in your life, teaming up for your tax and health insurance can deliver some real cost savings. It’s good to know that couples with children and without are subjected to the higher family tier income bracket for the Medicare levy surcharge and some funds will have slightly cheaper joint policies so you’ll pay less on your health insurance premiums. Others may have options such as a combined excess where if one of you has a private hospital stay and the other also needs to in the same year, the excess will only be charged once. Vice versa, if you end a relationship, the same fund may not suit your needs as a newly single individual, so find a fund with cover that suits your solo lifestyle best rather than defaulting to a singles policy from your current health insurance company.

Employment

Switching jobs is also a good time to review your health policy. Although not as common these days, some companies will offer subsidised health care options that will be more budget friendly. Other industries, like defence, will have dedicated health funds that are not open to the general public and are often run as not for profit and offer better benefits. If you suddenly become eligible for a new health fund because you have taken up a new position, examine their product disclosure statement carefully as you will often be at an advantage to get cover through them.

Obtaining Health Insurance after Cancer

Obtaining Health Insurance after CancerCancer is among the most dangerous diseases known to man today. As a matter of fact it is not a disease but a group of diseases. The disease is characterized by the explosive growth of abnormal group of cells that forms the tumor. These cells are what destroy the tissues of the body that are near. Through the lymph vessels and bloodstream, the cancer cells can also reach the other parts of the body. Cancer may be a leading disease today but fortunately, it is becoming more treatable today. More and more cancer patients are surviving the disease and are living a healthy life but unfortunately, obtaining a health insurance after cancer is not that easy. Some insurance companies don’t feel that cancer survivors are eligible for health insurance coverage due to pre-existing conditions. This is what leaves many cancer survivors uninsured.

And to cancer survivors, though cancer insurance policies are a great plan that will actually pay them to keep their appointments for cancer screenings regularly, some feel they don’t need an extra expense to their monthly budget that is already overly stretched. However, it is important to keep in mind that cancer insurance pays for itself.

Pre-existing conditions means that it could take a year before an insurance company will pay the health costs related to pre-existing conditions including cancer. Though the cost may be enormous and survivors may need to pay these expenses on their own, obtaining a health insurance cover is still possible.

There are actions that a cancer survivor needs to take to get access to health insurance after cancer. For those who already have individual policy, the very first thing that they need to do is to carefully inspect their insurance policy and see what is covered and what is not. Check the type of treatments that are available. See if they allow you to select your own specialist or consult a doctor of your choice. Know how to go about getting a second opinion and what expenses are covered like chemotherapy, surgical procedures and doctor visits.

For cancer survivors who are already insured, group coverage is the best option because the rates are usually less expensive and the coverage is more likely to be maintained by large company rather than an individual policy. However, not everyone can access this option.

Cancer survivors need to be aware of the many scams out there. Many dishonest insurance companies out there claim to offer the most affordable health insurance to survivors of cancer. Many scams are mostly found online and they are typically from companies that were unknown. The best way to avoid becoming a victim of such unscrupulous companies is to seek claims only from well-known and reputed health insurance companies.

Though coverage for cancer survivors is not that easy to obtain, still, they are not impossible. If you will conduct proper research and ask as much information as possible, you will be able to obtain health insurance after cancer. It also helps if you will read as much articles about health insurance. You will find more articles online.