Monthly Archives: February 2014

Importance Of Travel Insurance

Travel insurance is a very important part of insurance policies and provides financial coverage and other benefits on a trip if any mishaps occur, both in a domestic or an international trip. It should not be sidelined during overseas trip for business, vacation or higher studies. Medical or health policy only covers medical emergencies that may occur during a trip. But your travel insurance policy will bear all sorts of losses like misplacements or non-arrival of luggage’s, cancellation or delays of flights, looking for your stolen documents, etc. If you are still unsure about buying travel insurance, do read the few important tips below.

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Types of Travel Insurance:

There are four important types of travel insurances-

  • Individual, Family and Senior Citizen Travel Insurance.
  • Domestic and International Travel Insurance.
  • Single and Multi Trip Travel Insurance.
  • Business and Student Travel Insurance.

The cost of travel insurance is based on a number of factors such as the age of the insured, the destination of travel, length of stay and pre-existing medical conditions.

Go Through Documents Carefully:

Travel insurance is a contract; hence you should always read the product statement carefully and ensure that you understand exactly what your policy covers. You should keep in mind that it is not unlimited. It may not cover you for cancellation or change of travel plans. Always keep a copy of the policy statement for your own record.

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Limits and exclusions:

Travel Insurances include standard general exclusions applicable on all policies. These can include acts of civil unrest, self-inflicted injury, acts of terrorism, loss or theft of unattended baggage’s and undisclosed pre medical condition. Travel insurance policies may be cancelled if injuries occur under the influence of alcohol or drugs.

Generally travel insurance exclude dangerous or extreme activities such as snowboarding or surfing, rock climbing, kite surfing, bungee jumping and scuba diving. However you can pay an additional premium to cover such activities.

Cover for luggage and personal belongings is limited and expensive items such as cameras, laptops and/or jewellery may have a limit mentioned under the policy taken by you.

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Travel Insurance covers so many benefits, that it becomes almost mandatory to have one while you travel. So you should most definitely own one if you are planning to travel.

 

Importance Of Having A Health Insurance

Health insurance is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the person indemnified. These insure you against several illnesses, while assuring that you remain financially secure should you ever require treatment. They eliminate all your worries about treatment expenses and allow you to focus your energy on more substantial things, like getting better.

Health insurance can either reimburse the person insured for expenses incurred from illness or pay the care provider directly. Let us look at some of the important reasons for having a good health policy in your financial planning.

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Uninsured people receive less medical care and less timely care- Having a health policy is important and is highlighted in many occasions, especially when you go for a treatment. Unfortunately, if you do not have a health insurance, they ask you to first pay some amount as deposit before they can hospitalize you. And then they keep on pestering you for more money on a timely basis to make sure you can pay them.

Hence a patient with mediclaim will be subject to more tests and care than one without one as uninsured adults get fewer preventive and screening services and on a less timely basis. It has been observed that no mediclaim can lead to more fatal outcomes as inadequate medical care over a long period of time proves to be detrimental for an individual.

Health Insurance also covers pre-existing diseases- The IRDA (Insurance Regulatory and Authority India) has mandated a maximum of 4 years after which your pre existing diseases need to be covered by your mediclaim policy. The probability of a pre existing disease recurring again is more than a new one happening, so it becomes more important to you to have a health cover these days.

Insurance diminishes Financial Burden for an Individual- For individuals and families who do not have proper mediclaim, any sort of hospitalization (a small surgery or something critical) means spending money from their pocket to pay the hospital. With the current medical costs rising year after year in India and worldwide, this can set you back big time.

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A health insurance is a necessity for a safe and secure future. Its goal is to protect an individual and safeguard your money and insure your life for medical emergencies. Unlike common myths and misconceptions, health insurance can be cheap and affordable.

You have to remember that health or medical insurance is not a luxury, but a necessity. Paying cash for illnesses or accidents result in losing your hard earned savings. A health insurance plan is the safest way of protecting your health and your savings.