Mediclaim Policies - Why They Are a Must for All?

What is the need to spend money on health insurance? Do you think on similar lines? If yes, you are one of the many who think the same. Most people tend to think that Health Insurance is something that they need to think about only when you are aging or have ill health.

An accident or natural disaster or communicable disease can happen to anyone at any age. Such situations can drastically alter a person's life, causing huge expenses towards hospitalization and after care. Pollution and changing lifestyle sets in diseases even to youngsters. Coming across persons with heart disease or diabetes is common now days. Diseases like cataract which was earlier associated only with old age are now gradually settling with persons in their 50s.

A mediclaim or a health insurance policy is a contract wherein an insurer agrees to provide reimbursement to the insured in an event of hospitalization or any other related expenses. The definition of such expenses is broad and covers all related expenses right from the diagnosis of illness to its treatment, required surgeries, medications and any other medical aid that might be needed.

Some reasons why one needs a Mediclaim Policy:

• Health related uncertainties: Any one can have a health issue at any point of time. A Mediclaim is the only thing that can support you financially in such a situation.

• High Medical Expenses: As medical costs surge one feels the need to have a better financial back up in case there is a medical emergency.

• Tax Benefit: Under the Income Tax Policy of India one gets a tax benefit and can save on tax payable if one holds a mediclaim policy. This is done to encourage investments in mediclaim.

Mediclaim are broadly of two types:

• Individual mediclaim: This is a plan where an individual can choose a sum insured to suit his/her requirement. Chosen sum insured will provide cover to that individual throughout the policy period. Such a plan can be individually chosen for any/all family members. It is a market practice to encourage more number of persons to enroll under individual mediclaim by providing family discount on premium

• Family Mediclaim: In a Family Insurance policy you can insure your entire family under one plan i.e., sum insured. This means there is single policy coverage for a fixed amount which can be claimed for any /all member of the family. The premium paid towards the policy is one. Normally Insurers charge the premium depending upon the highest age of family members and family size. While opting for family mediclaim one cannot get any family discount.

Mediclaims however have their own limits and conditions that need to be followed and fulfilled to claim insurance. Some common limitations can include:

• Ailments that are known previously i.e. before the policy is bought are not covered under mediclaim policy.

• Ailments which are grouped as one year or two year exclusions, which will automatically become payable if one crosses such a waiting period.

• Expenses beyond the amount agreed in the contract are not paid as a part of claim by the insurance company.

• Most Insurance Companies have a list of hospitals that allow cashless hospitalization for policy holders. While one can avail health care in any registered hospital or hospital complying with the norms specified by Insurer, cashless facility is available only with the hospitals under net work of the Insurer. In other hospitals, Insured person should spend from his pocket and claim for reimbursement. Mediclaims do not reimburse treatments done by way of homeopathy, naturopathy, ayurveda or any other medical science other than allopathy.

Health Insurance premium go up based on the age and Insurers generally have an upper age limit beyond which they might either demand medical documents to decide on offering cover or might deny cover due to age.

Continuous claim free year is encouraged by Insurers either by offering a Cumulative Bonus which is added up to the sum insured without any additional premium or by offering a discount in premium.

Hence it is prudent to insure in younger age and get the utmost benefit out of mediclaim insurance.

While Mediclaim is a common term used for health insurance, various insurance companies float such plans under unique names.

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Medicare Supplemental Insurance - Do You Need Medigap Coverage?

You've worked hard for your retirement, don't jeopardize your dreams.  Maybe you're the responsible type and have saved and put off a lot of activities waiting for when you could finally kick back and relax. You've finally reached the age where you can truly enjoy the lifestyle that Malibu and the Pacific Coast can offer you.  However, now you need to consider Medicare.

Do you realize that, should you have a medical crisis, Medicare might not cover all your bills? You could find yourself facing a financial crisis simply because you thought that Medicare would be sufficient to meet your needs.  Suddenly, you find that not everything is covered and your blissful retirement and your savings are in jeopardy.

Congratulations, you've reached the age where a health crisis can be devastating!  Many seniors don't realize that Medicare is not always able to take care of your needs.  Also, many doctors are reluctant to take on new Medicare patients.  You could find yourself falling into that chasm where Medicare won't cover you.

You Need Medigap Coverage!

Medicare Supplemental Insurance is available to help you cover those expenses that either fall through the cracks of Medicare or aren't fully covered under the government plan. Medicare was never intended to be a full coverage plan, but rather to cover those retirees who could not afford full health insurance. Don't wait until you have a major medical emergency!

Now you can find Medicare Supplemental Insurance, sometimes called "Medigap" insurance, right from the convenience of your computer. It is recommended that you enroll in this type of insurance soon after reaching retirement age, so don't delay! Every year will bring an increase in premiums if you delay signing up. There's no excuse not to get coverage when you can enroll in this vital insurance program without even leaving your home.

You can evaluate policies and find the plan that's right for you simply by filling out an online form. Don't like the impersonal ambiance of the Internet? Find an insurance agent right in Malibu or nearby, who will be happy to discuss the different plans with you. Don't delay - the best time to buy Medicare supplemental insurance is at age 65.

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How Does a Medigap Policy Work?

Before we can understand how the Medigap policy works, we first need to know what it is. A Medigap plan is health insurance sold by private insurance companies that supplements services or benefits that are not covered by the Original Medicare (Part A and Part B). It literally fills-in the "gaps" left by Medicare. This is why it is commonly referred to as either a Medigap plan or Medicare Supplement plan.

The Center for Medicare and Medicaid Services (CMS) has standardized these plans in an attempt to make them more consumer friendly. These plans are often referred to as "Plan" and a following letter; i.e. Plan A through F, Plan G, Plan K, Plan L, Plan M, and Plan N. Each plan covers a variety of services that Medicare does not cover completely. As you move up from A to N, plans generally cover more services as you go higher in the alphabet. Drug coverage is not included with your Medigap Plans because of the Medicare Part D prescription drug coverage.

To be an eligible Medigap plan beneficiary, the individual is required to be enrolled in Medicare Part A and Part B. Often beneficiaries find themselves selecting a plan when they turn 65. Those turning 65 have a window of opportunity to enroll in a Medigap plan with no health questions or exams. This window is 3 months before the month you turn 65 and 3 months after the month you turn 65. So some one turning 65 in September would be eligible to apply between June and December. Seniors working past 65 with company coverage can apply when they retire. They also receive the opportunity to enroll with no health questions or exams.

Each Medigap policy only covers one person, for married couples, each spouse must purchase a separate Medigap policy. As a standard rule, a Medigap policy cannot be cancelled or revoked by the insurance company for as long as the beneficiary is still paying the monthly premium.

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