Save today for you medical needs tomorrow

Not all days are rosy, especially for people who are in the service class and belong to a middle class background. Mr and Mrs Mathur had an experience a year ago which reaffirms this fact. Mr Mathur is a CA by profession and Mrs Mathur is a freelance graphic designer. Their Daughter Samara goes to a convent school and studies in class three. The couple love talking small vacations up in the hills from time to time. Unfortunately, this summer, they could not do the same as their daughter was suffering from Typhoid during the summer holidays.

Sudden illnesses can hit anyone at anytime. Hence, apart from care and affection, a huge sum of money for treatment is also needed. Now-a-days, medical expenditure involves a huge cost. And when it is this elderly or children who are suffering, one cannot afford to take any risks.

Different Needs for Different Ages

There are different kinds of medical expenditures which  emerge at different ages. And when it comes to medical insurance, not all medical expenditure is covered.  Costs related to pathological tests, medication and even pregnancy are not normally covered in medical insurance. This cost can be exorbitant and can certainly create monetary burden if not planned in advance. Children and elders may require elaborate medical treatments when compared with people who are in their mid 30s or 40s. Right from the time the child is born he/she starts to incur medical treatment weather it is the cost involved in giving birth to the child or giving him/her regular vaccinations. Once a child starts going to school or plays with friends there may be minor injuries which may also require treatment. Also, since children interact with many other children, teachers, and friends they are more susceptible to infections.

The premium paid toward the medical insurance is also counted as medical cost.

When it comes to the elderly, people above the age of 60 need regular medical attention, may it be the treatment of any chronic health problem or regular medical checkups.

Company Insurance vs. Self Insurance

Most of the Multi National Corporations cover their employees’ with a medical policy. However, one must be well aware of the terms and conditions of these medical policies. They may look very lucrative on the surface but they may not cover most of the points. Many medical insurance policies do not cover costs incurred on eye and skin related treatments. There are also policies which do not take into account the expenses borne on medicines. Also, most of the medical policies do not cover pregnancy costs. If there has been a prolonged illness or a history of medical problems, they may take it into account while deciding the premium  and they might not cover the abovementioned illnesses. Hence, in case of pre-existing illness, these medical policies may not be of use. Moreover, as people constantly change jobs these days, not all companies would provide a medical policy. Therefore, it is advisable to buy a personal medical cover in order to protect yourself from the risk.

Individual Policy or Floater

There are different kinds of policies for different segments of people according to their needs and requirements. People who can afford an individual policy for each member prefer to buy those  while people worried about high costs associated with the individual policy can opt for the floater policy.

In the case of a floater policy, the cost incurred is lesser when compared with the individual policy. In case of an individual policy comprising of a family of two adults and two children, the premium would cost about Rs. 21,000 for Rs. 5 lakhs cover for each for a year. Whereas, in case of a floater policy, the premium cost would sum up to Rs 7,500 a year for all four members. Some floater policies also have the option to include an additional family member such as the in-laws. However, the terms and conditions differ from one insurance company to another.

Medical cost can be tremendously high. Hence it is advisable to plan for them. By following some simple tips one can save a lot of money from their household expenditure and channelise it towards their medical cover. Saving does not always mean compromising on your lifestyle. Saving even some odd rupees every month can act as a savior in times of need. Following are the things in which one can save and economise:

  • Leisure activities such as Entertainment (movies and family outings)
  • Cutting down on dining out or weekly grocery bills
  • Cutting down on transportation cost, by pooling in or driving a fuel efficient vehicle.
  • Home (insurance, repairs, home and garden decor, mortgage or refinancing)
  • Cutting down on telephone, mobile bills
  • Buying discount ticket for vacation such as discount flight tickets, budget accommodation etc.
  • Using energy efficient appliances and reducing on utility bills.
  • Making timely payment of credit cards in order to avoid late charges.
  • Indulging in smart shopping, making use of discounts and money off vouchers.
  • Keeping in mind and using these simple steps can help one to not only save a lot of money, but also keep his lifestyle largely unchanged.

Everybody must learn the art of saving because financial needs and emergencies can arise anytime without any prior notice.  When it comes to medical urgency, a person cannot afford to wait or delay his monetary or medical actions.  Due to medical advancement today, there are better services available, albeit at a high cost.

Therefore, one must plan in advance for a rainy day keep him or herself abreast on the med claim policies.  Also, one must also have sufficient liquid cash in case of times of need.

People do not realise that a penny saved is a penny earned. A lot of us today are getting accustomed to a sedentary lifestyle which is making life even more complicated. Laziness and extreme convenience is slowly making the system weak and making it more prone to problems and diseases. Lifestyle problems such as obesity and diabetes are not covered in most med claim polices. Parents must encourage their children to play sports, be active, and eat healthy food in order to stay away from diseases and medical treatments.


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