K. ARAVID
Diseases come to us without any warning. Therefore, it is necessary to be financially prepared to deal with the situation of becoming ill. Most people rely on their or their spouse’s group medical insurance coverage. Another group is those who take out their own insurance policy. Is taking out that health insurance policy the only way to deal with an unexpected hospital stay? What about those who do not qualify for a health insurance?
The cost of a health insurance policy is a premium paid annually. The insurance company bears the full or partial cost of hospitalisation due to illness. At the same time, the insurance company does not provide coverage for certain diseases. Illnesses that were present at the time of taking out the policy will be covered only after a certain period of time.
Personal health insurance claims for people between the ages of 25 45 are generally very low. During this period, most people will be using the group insurance and coverage of the company they work for.
Given this fact, would it be appropriate to raise money for hospital expenses on your own? When a group of 25-year-olds have group insurance coverage, they can find money for emergency medical needs through a planned deposit instead of taking out another individual health insurance policy. For this you can invest in mutual funds through SIP (Systematic Investment Plan).
If you invest Rs 3,000 every month through SIP in mutual funds, in the long run you will have a large fund. For example, if the return on mutual funds is 12 per cent per annum, a person who invests Rs.3,000 per month can raise Rs.7 lakh in ten years. If a similar return is received within 20 years, the investment value will increase to Rs.30 lakhs. For example, if you start investing at the age of 25, you will get Rs.30 lakh by the age of 45. It can be used for any purpose, including medical expenses.
Similarly, insurance policyholders should consider a separate fund as they are not covered for existing ailments. If the insurance company does not approve the policy for any of the existing ailments, you will have to find yourself a special fund for medical treatment needs. You can also rely on SIP for this.
