Home > Personal Finance > Medical Insurance – Often Forgotten Till One Needs It!

Medical Insurance – Often Forgotten Till One Needs It!


Medical Insurance is one of the most ignored subjects with the “modern day IT crowd”. Most of the people I interact with either do not realize the importance of it or just choose to ignore it. In a situation when you are hospitalized, a medical insurance policy covers all your pre-hospitalization, hospitalization and your post-hospitalization expenses. In today’s world when quality health care is exorbitant, it is imperative to have a medical insurance cover.

One alibi I found repeatedly with my friends is “My Company is covering my medical insurance. Why do I need to bother”? Consider the following situations:
a) You do not have a job. In today’s recessionary times, it is not very difficult to think of such a situation.
b) Your company reduces/stops the benefit. Most of the US companies look at reducing/stopping the medical benefits to reduce costs during tough times. I know of an Indian IT company which has drastically changed its medical insurance policy from 2009 onwards.
c) You move to an organization which does not have the medical insurance benefit. This is possible as not many companies/sectors outside the IT/ITES ring provide medical benefits. Taking an insurance policy at a higher age will attract a significantly higher premium.

One main advantage of taking a medical insurance at a young age is that the premium amount is very low. I took a 2 lac floater cover for myself and my wife at Rs.1794 per annum with Reliance General Insurance. This premium will remain consistent till the time I am 65 yrs. of age. A small amount to pay for facing the uncertainties of life.

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  1. Manan
    February 9, 2009 at 8:55 am

    Good start Jose. 🙂
    another point worth mentioning in ur blog would be that any amount paid towards medical insurance premium is tax exempted (ofcourse max is 15K ).

    cheers
    Manan.

  2. February 11, 2009 at 7:03 pm

    @Manan: Point well taken. I had skipped mentioning it. One can claim for Medical Insurance Premium benefit under section 80D. This is separate from Life Insurance which is covered under Section 80C.

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