Month: June 2018

5 Important Things to Consider Before Buying Medical Insurance Policy for Your Parents

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5 Important Things to Consider Before Buying Medical Insurance Policy for Your Parents

The cost of healthcare is escalating every year. Treatments, surgeries and post-operative checkups are predicted to get more expensive in future. The rising cost of health care coupled with inflation can set back any family financially during a medical emergency. Which is why now more than ever it’s essential to buy a medical insurance policy for your parents. Aged parents, particularly, could end up spending significant amounts of money at the hospital during a medical emergency and subsequent hospitalization. In order to avoid shelving heaps of cash, here are five things to seriously consider while buying health insurance plans for family:

Age for entry

Most health insurance companies offer policies for senior citizens but also state the maximum age of entry. Usually, the maximum age is set to 70 years. Which is why it’s imperative that your parents purchase a policy by 69 years of age. However, to be safe rather than sorry, procure a policy for the entire family as soon as possible.

Waiting period

Waiting period refers to the time it takes for the policy holder to report a claim. It is always a good idea to be aware of the waiting period for your parents’ medical insurance policy so as to avoid any confusion later.

Does the policy have a sub-limit on special treatments?

No matter how high a premium you pay for your parents’ health insurance, some health insurance companies are known to set a sub-limit for certain treatments. For example, you may be able to claim only rupees 40,000 for a hernia operation despite being insured for 5 lakh rupees. The premium may be high but because the company has set a sub-limit, you cannot claim more money on the cost of operation.
While buying health insurance plans for family, ensure that you buy one that has no sub-limits for special treatments even if the premium is high. Always take time to read the fine print of your policy’s terms and conditions.

Renewal age

Every health insurance provider will set a maximum age beyond which a policy holder cannot renew their policy. However, some providers do offer lifetime renewal. Always opt for a lifetime renewal plan while scouring for the best medical insurance policy for your parents.

Covering pre-existing diseases

Health insurance companies rarely cover treatment costs of pre-existing diseases in the first year of the policy. However, most start covering the cost associated with a pre-existing disease or medical condition in the second year of the policy.
It is important to conduct a meticulous research, read the terms and conditions and compare policies before purchasing one for your parents. Always take into account their medical history, existing health problems and current financial situation before buying a medical insurance policy. A little research on your part will go a long way in selecting the best policy for them.

When Is The Right Time To Invest In A Retirement Plan?

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When Is The Right Time To Invest In A Retirement Plan?
by Edelweiss Tokio Life Insurance

Retirement is that golden period in your life which we start dreaming about once we get stuck in our day-to-day life, that’s no longer in our control. At home, our family controls us. At work, the Corporate Devil. It’s that phase of your life where you would want to invest in doing things and activities that you love – relaxing, travelling, indulging in hobbies, etc. You can finally take a break from your responsibilities and focus on fulfilling your dreams such as going on a world tour or living a relaxed life in your dream house at your favorite destination. However, you need to plan for your retirement well in advance.

Financial planning is a must in order to ensure a financially secure and comfortable retirement. You have to first realize that you will have the time to plan for your dreams post retirement but you may not have a regular source of income and a very good health. To ensure that you are financially independent even post retirement you have to plan for a regular source of income so that your regular expenses are taken care of and you are also able to achieve your retirement goals. Nobody would like to be financially dependent on someone else during their retirement.

It is prudent that you start saving money as early as possible because every penny counts and the earlier you start, the better your returns.

If you are able to put only a small fraction every month towards your retirement fund; it shouldn’t dissuade you from saving. Mid-twenties is a time when you are slowly adjusting to your new lifestyle, saving money for your retirement is the last thing on your mind. However, this is the time when you have not many responsibilities. And so, this is the ideal time for you to start investing in your retirement goals; not only will you have a larger investment corpus because of the power of compounding but you will also get into the habit of saving.

As years pass on, you are burdened with more responsibilities like taking care of your family, being a financial pillar for your family’s needs, work pressure and the constant race to succeed. You may have liabilities such as home loans, car loans, credit card bills, etc. You may assume that investing for your retirement is not a priority because you are already burdened with ample of responsibilities and liabilities. Forming multiple saving or investing habits at this phase of your life would be difficult.

When you are in your 40s you and your spouse will be burdened with responsibilities like funding your child’s education and there may also be health problems which can add on to your level of stress.

This is also the time when you are nearing your retirement stage.

At 50s you are at the final stage of your retirement. You would have already made a list of all the things that you want to do after you retire; giving you an idea as to how much money you will need for your daily household expenses and fulfillment of your retirement goals.

Now, if you take a smart move and invest your money right from the start i.e. in your 20s, imagine the corpus you have already built. It may be a fraction of your monthly income now but as years pass by, this regular habit of investing, would give you great returns, thanks to your decision to plan early.

So, whether you are in your 20s or 30s don’t assume it’s too early to invest because the earlier you invest, the greater your returns and you are nearer towards achieving your retirement goals. Don’t delay, the right time to invest towards your retirement goals is NOW!