Health insurance misconceptions among millennials – Get clarity now

Health Insurance Young Adults: Today is International Youth Day and one aspect of youthfulness that resounds with everyone is a healthy body. In younger age, the mind and body are in the best shape and mostly free from any kind of ailments. The need to have a health insurance policy is, therefore, largely ignored by most of the younger generation especially the millennial.

But, should they ignore the risks or rely solely on the group insurance cover provided by their employer. Many of them are even reluctant to buy health insurance as they feel the claims will anyhow be denied by the insurer.

One big reason for youngsters not buying health is the perception that claims will get denied during hospitalization. How do you think this view can be changed?

As a general rule, claims are denied only in the event of any exclusions mentioned in the policy wordings being invoked at the time of a claim. The best way to address this issue is to have a clear understanding of the terms and conditions of the policy at the inception stage itself.

In addition to this, it is important to be transparent at the time of taking insurance with regard to pre-existing illnesses or conditions so that there are no misgivings at the time of a claim. If required, assistance can be taken from a licensed intermediary like an agent or even by directly talking to the insurance company representatives. These steps will ensure that claims settlement is smooth and hassle-free process.

As a youngster, there are lesser health issues. Then, why should one buy health insurance?

While it is true that medical complications increase with age, it cannot be assumed that youngsters are immune to health-related issues. The stresses and strains of modern-day life mean that there is no direct correlation between age and health issues.

Moreover, it needs to be remembered that events such as road accidents can happen at any age and health insurance policies cover such eventualities as well. It also makes sense to take insurance when you are young and healthy because as you grow older and beset by health-related problems, it becomes difficult to get insurance cover and even if available, it might come in a restricted form.

Also bear in mind, that insurance cover can be purchased not only for yourself but also your spouse, children and parents so that the whole family can enjoy the coverage.

For unmarried youths, is it important that they buy health covers?

Health insurance is important irrespective of whether you are married or unmarried. Buying insurance is part of financial planning. Mostly at a young age when you are unmarried and start working you have financially dependent parents, having health insurance reduces your and your parents’ financial and emotional stress. And even if you get married, you can then opt for family floater plans to insure your family.

There are several health insurance plans offered by insurers. How should a youngster decide?

In today’s world, a faster pace of life, high-stress levels and lack of physical exercise have given rise to numerous lifestyle diseases. With the rise in prices of healthcare in our country, and with the increasing` instances of diseases, the earlier you get a health insurance cover, the better.

Before opting for any health insurance plan, one should consider the following things in mind.

• Firstly, identify your needs. Health risks & cover needs vary from person to person on parameters like age, gender, family history of illness, work-life, and even area of residence. You need to analyze the specific risks before making the right choice.
• Indian market has a variety of insurances to offer. Moreover, look for a policy which offers a cumulative bonus. Cumulative bonus leads to annual increasing addition in sum insured for not claiming in the policy.
• Another important aspect is to buy the policy at an early age as it ensures that your pre-existing diseases are covered after a certain waiting period. It is important to understand the waiting time to cover for your preexisting ailments and to purchase from a reputed insurer with good settlement history.
• The fourth important criteria is understanding Sub Limits. If your policy has sub-limits, then the Claim cover will up to the sub limited amount only. Any amount on top will be paid from your own pocket.
• The most significant criteria is to keep medical inflation in mind. Health insurance is taken for ensuring a safer future with medical expenses covered. It is smart to keep a 7-10% medical inflation rate in mind while deciding policy coverage.

Most working youngsters get corporate health insurance coverage. Then, why should they opt for additional cover for themselves?

Corporate insurance covers you only as long as you are in employment with a particular company and it will cease once you leave the organisation. Moreover, it may have many restrictions in terms of limited sum insured and cappings in case the employer wants to save on premium.

Under such circumstances, it makes sense to have a separate health insurance policy for self and family which will provide continuous coverage even at the time of change in employment. Corporate health insurance cover tends to be standard as it applies across the board to all employees while individual health insurance plans can be customised according to ones specific needs.