A sick bed in the hospital is the most expensive bed in the world. It has the capacity to rip you off all your wealth and savings. Some people even have to sell of their belongings to pay their medical bills. However, as they say, ‘a stitch on time saves nine,’ investing in a good medical policy may indeed be a life saver in the truest sense of the term.
A medical policy is very helpful during medical emergencies; however, it is always advisable to make an informed decision. Hence it is essential to know a thing or two before you start investing in medical policies.
Invest In Medical Policies To Cover Medical Expenses, Not For Tax Savings
The first thing that you may have checked in your job contract when you started your career was whether the company provides a medical policy or not. Well, you are not alone. Most of the people do so. However, when you start your career, health issues are hardly top of mind for you. At that time, you look for a medical policy that will help you save tax. This is the first mistake that needs to be avoided. Your medical policy is meant to cover your medical expenses and you should approach it accordingly.
Invest In Individual Medical Policy
The second mistake that is done by people is that they rely solely on the medical policy provided by the company they are working for. However, they should keep in mind that the medical policy provided by the company will expire as soon as they change the job or get retired. Thereafter, they will not get any support from that policy. Hence it is advisable to invest in an individual policy for yourself as well as your family that will give you coverage even after you have retired.
Early Bird Benefit
It is important to start investing in your younger days because with age health complications such as blood pressure, diabetes etc start cropping up making the insurance premium to soar higher. The added advantage of investing early is that you may not use your policy in your younger days which will add up as a bonus to your sum assured which can be of use at the time when it is needed at a later stage of your life. Hence, when it comes to medical insurance, it is always sooner the better.
It is also advisable to invest in a policy that offers lifetime renewability. In these policies the amount of the premium increases with age. However, it give you coverage till your old age.
Avoid Claim Loading
Claim loading is when the policy demands for extra premium every time you make a claim. In such cases, if you have a long term illness, the premium keep soaring making you fall into a vicious circle. Instead invest in a medical insurance that gives you a restore limit. This acts as a buffer and helps you to get top ups in case of long running critical illnesses such as cancer.
Check The Sub Limits
Sub limits refer to the limit to which your insurance premium will facilitate the coverage. Beyond this, all the expenses are to be borne by you. Some policies cover even cover pharmaceutical health products and medicines while most policies don’t. Preferable invest in a policy with no or negligible sub limits. There are lots of pharmaceutical products suppliers who have tie up with many hospitals and medical insurance company.
Go With Reputed And Time Tested Brands
Always invest in reputed brands. But most importantly read the policy very carefully to understand all the pros and cons, benefits and liabilities before putting your money into it. Consult investment experts to understand each and every point before investing.