5 Questions About Health Insurance You Should Answer Truthfully
Financial preparation and planning are an important and imperative step cum responsibility ones must take throughout life. A sudden death, health issue and so on can affect a family more than you think and plan your finances accordingly is a great step to keep the future of your loved ones stable if not perfect.
Though it may not seem like a necessary step, it is recommended that the earning member(s) of a family plan for their family in case of a mishap. One way of having a backup for such mishaps is applying for health insurance. These are so-called iron clad family protection options in case the sole provider(s) encounter death.
Though there are several health insurance plans out there, not every plan is as solid or as profound as an SBI General Health Insurance. Some policy companies will try to fool you into taking an expensive plan even though the plan does not cover much. Before choosing a plan, make sure you speak to your family members about the best plan and decide accordingly.
Read every term and condition before you sign documents. There are a couple of health insurance questions to ask before you sign any papers.
5 Questions You Must Answer Truthfully
- Do you have any pre-existing health problems?Most people tend to lie in this part as they feel if they don’t they won’t get the plan they desire for their family. It is always important to remain honest about current health problems (if any) because if you’re caught in a lie, the insurance company may take you to court, and who would want that?
- How much money do you make?Some people exaggerate their yearly income as some plans fall under certain income groups. It is recommended to state your actual income to avoid future problems.
- Will my Family receive funds as soon as possible?This depends. Some agents claim that your family will benefit within a week of your death, but some companies drag you through the mud for months or even years. Just to be clear, have your agent give you a written application or proof of the benefit duration.
- Will I Get a refund if I wish to switch plans with another company?Some companies say they do while others don’t. Be sure to have everything in written or in hard copy, so you do not face problems in the future.
- Will my family get the whole amount after my passing?Well, this is a tricky question. While many policies like SBI General Health Insurance do ensure your family gets the sum insured, some companies and plans deduct money disguised as tax or so. You will need to talk to the agency in question before signing any documents.
- I have money saved up in case of a mishap. Do I still need to apply for financial protection after my death?Keeping aside money for your family in case of difficult times is a great way to secure your family financially. However, this isn’t enough. Insurance is a buffer that your family can rely on, something which no bank can freeze in case of suspicious activity. Also, those who apply for insurance are mostly exempt from tax.
- What is the return policy after my tenure of insurance is met?To be honest, it depends upon the health insurance plan or policy you are investing in. Some have higher returns while others don’t. An SBI General Health insurance for a period of years mints you more returns than a plan for a certain term like a couple of months.
- How much insurance do I actually need?This is a tricky question but a good one nonetheless. It really depends on your objective. You must invest enough to help get your family through at least a year. Below is an example to give you an idea of how much to invest.
Let us assume the following:
- Your monthly earnings = Rs. 60,000
- Percentage cover for monthly salary = 80%.
- Your Monthly savings = Rs.18,000
[80% of your monthly income (i.e 60,000) = Rs.48,000]
[48000-18000 = 30,000X12X15= 5,400,000]
Based on the example above, you need to invest at least INR 5,400,000 as your health insurance cover.
