Author: Rupanjali Mitra Basu

The biggest reason for delaying your health insurance plan is procrastination! Most people keep “thinking” about the best health insurance without actually taking an action. Once the basic purpose of the health insurance plan is established, it’s much easier to choose the plan based on your needs.

So, here are the top 5 questions which you need to determine which would help you to opt for the best health insurance plan for yourself and your family.

1. How much health insurance should you buy?

   Health insurance plans allow coverage from Rs.50,000 to Rs.2 crores or higher. As such, choosing the right coverage amount might stump many. Ideally, the choice of the sum insured should depend on your lifestyle, size of the family, estimated hospitalisation and treatment costs, age, etc. However, as a ready reckoner, there is a thumb rule for determining the optimal coverage amount. This thumb rule is as follows –

   Optimal coverage = 50% of your annual income + hospitalisation costs incurred over the past 3 years

   Many experts also recommend 50% of the income to be the starting point. So, if you earn Rs.20 lakhs a year, you need coverage of at least Rs.10 lakhs. Higher coverage is better as you can get sufficiently covered against rising medical costs.

2. How to buy the policy?

   There are more than a dozen health insurance providers in India. As such, you might be spoilt for choice when it comes to finding the right plan and buying it. The ideal way to buy a health plan is to compare and then buy. There are leading online platforms that allow you to compare the health plans of leading companies. Assess your coverage needs and then compare the plans offering the desired coverage. Compare the coverage features vis-à-vis the premium and choose a suitable plan.

   As far as buying is concerned, the online mode allows you to buy the policy instantly, without hassles. So, you can easily compare on https://turtlemint-stage.dreamhosters.com/health-insurance/ and buy the policy online.

3. Would the premium be affordable?

   Many individuals are concerned with the affordability of health insurance premiums. Truth be told, the premiums are affordable. You can also avail of different discounts that insurance companies offer and reduce the premium further.

   Furthermore, to make the premium even more affordable, insurers allow you the facility of instalment payments. You can pay the premium quarterly, monthly or half-yearly so that it becomes affordable in your pockets. So, avoiding a health plan by simply worrying about its affordability is no longer an excuse to skimp on health insurance coverage.

4. What benefits to choose while opting for your health insurance plan?

   Health insurance plans can have a variety of benefits for you to choose from. This is the problem of abundance and you might get confused. Choose your plan according to your needs.

   For example, if you suffer from any illness before you buy the policy, such an illness would be called a pre-existing illness. The illness would usually be covered under the policy but after a waiting period. Health insurance companies usually impose a waiting period ranging from 12 months to 48 months after which your pre-existing illnesses get covered.

   So, if you suffer from any illness, you can opt for a plan with a low waiting period so that you can avail of the coverage quicker.

   Along with the regular hospitalisation benefits, here is a list of benefits that you can opt for:

   1. Must-Have benefits:
      1. Good coverage of pre-and post-hospitalisation expenses
      2. Maternity coverage for a young family
      3. Low waiting period for any pre-existing ailments
      4. Day-care coverage
      5. Annual health check-ups
      6. No copay, especially zonal
      7. Home care treatment or domiciliary cover
      8. AYUSH (Ayurvedic, Homeopathy, Unani, Siddha treatment coverage) benefit
   2. Good-to-have benefits:
   1. No room rent capping where there are no sub-limits for claim
   2. Restoration benefit, where the sum assured would be restored in case of claim
   3. Hospital cash benefit
   4. Critical illness benefit
5. Would your claims be settled?

   Wondering if your health insurance claims would be settled or not? If you are, you can relax. Health insurers have simplified their claim processes so that you can get your claims settled quickly.

   You just have to follow some claim-related steps and your claims get settled easily. You can also seek expert help for claim settlement for a smoother experience. So, if you make a valid claim on your policy, your claim would be settled else the experts at Turtlemint would assist you with the same.

Once you have answers to these 5 questions, you will have an idea of which type of health insurance plan you need. Then all you need to do is opt for the plan at your earliest without contemplating further. In case you come across a better plan later, you can always choose to port it while continuing the benefits. Thus, it is wise to opt for a comprehensive plan so that your out-of-pocket expenses are minimised and you can avail all-round protection.

On 1st February 2022, India’s Finance Minister, Srimati Nirmala Sitharaman, unveiled the Union Budget 2022-23. The second digital budget of its kind, the Finance Bill 2022, focus on four major themes:

• PM Gatishakti
• Inclusive Development, Productivity Investment & Enhancement, Sunrise Opportunities
• Energy Transmission and Climate Action
• Financing of Fintech Investment

People have mixed opinion about the budget, but this has been presented more from a futuristic point of view for the next 25 years.

One key aspect is that there is no change in the direct tax slabs, exemptions and deductions available.

Broadly, the Budget can be analysed into 6 key areas, namely: 

1. Payment of Life Insurance Benefit for the disabled:

   If the beneficiary of a life insurance policy is partially or fully disabled, the insurer will need to pay the beneficiary the life insurance amount once the parent or the guardian completes the age of 60.

   This exception is only applicable to specially-abled beneficiaries of both new as well as existing life insurance policies.

   Prior to this, insurance companies used to pay the beneficiary only upon the death of the parent or the guardian, which in the case of a disabled beneficiary adds to their challenge.

   Takeaway: Among the many highlights of the budget, this gained the maximum praise from industry observers. 

2. Long term capital gain (LTCG)

   The surcharge on LTCG has been capped at 15% in this Union Budget FY2022 and is applicable across all asset classes. This is previously applicable only to listed equity stocks as well as equity mutual funds. Essentially this change makes unlisted stocks at par with listed stocks.

3. Digital Rupee and Crypto-tax

   The finance minister announced plans of the RBI launching the Digital Rupee in 2022-23, which will be developed on the architectures of blockchain technology. Along with this, any profit derived from the sale or transfer of digital and virtual assets such as cryptocurrency, NFT (Non-Fungible Token) etc., will be taxed at 30%, with an additional 1% TDS being deducted at the source of the transaction. Lastly, the loss of any digital or virtual asset cannot be offset against any other income. 

4. Inclusion of Post Offices

   In an effort to accelerate financial inclusion across the country, in the upcoming months, all 1.5 lakh post offices across the country will be brought under the core banking network.

   Aimed at improving and extending the coverage of the national banking network to last-mile customers, this transition will essentially bridge the gap between post office account holders and account holders at other financial institutions.

   Along with this, to earmark the celebration of Azadi Ka Amrit Mahotsav, 75 digital banking units will be set up across 75 districts by Scheduled Commercial Banks. Combined with the inclusion of post offices in the core banking network, experts predict that it will radically expand the horizon of India’s organized banking network. 

5. Capital Expenditure and Electric Vehicles

   Another highlight of the Union Budget 2022-23 was the finance minister’s push to increase the government’s capital expenditure by 35.4% from the previous year’s ₹5.54 lakh crore to this year’s ₹7.50 lakh crore.

   The ministry predicts that the effective capital expenditure for this financial year will stand at ₹10.7 lakh crores. The finance minister also invited investments from the private sector such that India can not only leap into its pre-pandemic growth trajectory but also pave the way for the next 25 years, leading to India at 100.

   On a separate note, the finance minister highlighted the government’s willingness to accelerate the growth of the homegrown electronic vehicle industry.

   The government has proposed manufacturers across the country to join hands and implement a standardized battery swapping policy such that more charging stations for EV (Electric Vehicles) can be developed.

   Along with this, the minister has also encouraged the private sector to innovate its business model such that battery as a service and energy as a service can be implemented in the future to significantly increase the efficiency of the entire EV ecosystem. 

6. NPS (National Pension Scheme) & MAT (Minimum alternate tax)

   To extend equal social security benefits to employees of both state as well as central government employees, the finance minister has proposed that moving ahead, the compulsory contribution of both central, as well as state government employees towards their NPS (National Pension Scheme) accounts will be 14%. This amount will be directly debited from their earned wages to arrive at their net pay.

   Along with this, to offer a level playing field to both co-operatives and companies, the applicable MAT (minimum alternate tax) has been reduced to 15%.

   Additionally, the applicable surcharge will be reduced from the existing 12% to 7%, and this benefit will be applicable to all co-operatives having an income in the range of ₹1 crore to ₹10 crores. The ministry shared that this move will be particularly beneficial to the rural population, where most farmers are members of the aforementioned co-operatives. 

7. Income Tax

   Lastly, the finance minister has not proposed a new tax slab for taxpayers; however, an additional provision has been added to the tax filing system.

   Moving ahead, taxpayers can file an updated return to voluntarily pay any missed amount in the earlier assessment year. This updated return can be submitted within 2 years of the assessment year in question.

   Along with this, in an effort to reduce multiple litigations, moving ahead, taxpayers will only be able to file one case with the income tax department regarding any discrepancy. Once the said case has been resolved, only then can a second one be filed. 

In Conclusion

There has been a lot of impetus provided to startups with extension of tax exemptions till March 2023. Although there are little alterations in this budget, it has futuristic approach and hence would prove to be growth oriented for the economy as a whole.

The Reference Shelf

• MAT to be reduced for co-operative societies to 15%: FM Sitharaman [Link]
• Budget 2022 Explained Highlights: Rs 5.25 lakh crore allocated for defence budget [Link]
• Budget 2022 LIVE updates: ‘Pegasus spin budget’, says opposition; PM hails it as ‘people-friendly [Link]

The National Family Health Survey is conducted periodically and it surveys the health conditions, insurance status, and other health related details of the Indian population. The fifth edition of the survey was published on 25th November 2021 and as per latest findings, the health insurance coverage among Indian households has gone up compared to the findings of the fourth edition. Let’s analyse what the survey concluded.

The key findings of the National Family Health Survey

The fifth edition of the National Family Health Survey was conducted between the periods of 2019 and 2021 compared to the fourth edition which was conducted between 2015 and 2016. Among the households surveyed, here are the three main findings –

• 41% of the households surveyed were covered under a health insurance policy.
• Health insurance coverage in India increased by 12.3% compared to the findings of the fourth edition.
• The health insurance coverage in the rural sector was found to be 42.4% and that in the urban sector was found to be 38.1%.

The interpretation

A jump in health insurance coverage among the surveyed households indicated a success of the Pradhan Mantri Jan Arogya Yojana (PMJAY) or the Ayushman Bharat scheme. The additional secretary and the mission director of the National Health Mission attributed this jump in health insurance coverage to the PMJAY or the Ayushman Bharat scheme. Experts corroborated this theory and said that the jump was largely due to the successful implementation of the Ayushman Bharat scheme pan India. The rural sector dominated the findings because a large section of the BPL families live in rural areas.

What is the Ayushman Bharat scheme?

The Pradhan Mantri Jan Arogya Yojana or the PMJAY scheme, the official name of the Ayushman Bharat scheme, was launched in September 2018 by the honourable Prime Minister Mr. Narendra Modi. The scheme offered free health insurance coverage of up to Rs.5 lakhs to BPL (Below Poverty Line) families.

The objective of the scheme was to provide quality healthcare facilities at the grass-root levels. The economically weaker sections of the society need healthcare facilities but their limited incomes prevent them from accessing the same. As such, the scheme intended to provide treatments and medical assistance, free of cost, to such families. 

While the scheme was launched on a pilot basis in 2018, currently, it has panned out throughout India and has become popular. As such, many families are now covered under the scope of the PMJAY scheme which has caused a jump in the average health insurance coverage in India.

How does the survey prove relevant for you?

Though the survey contributed the jump in the health insurance coverage to the success and implementation of the PMJAY scheme, the scheme may not apply to you. It is available only for the identified families that constitute the EWS and BPL families. So, you might not be eligible to enjoy free health insurance coverage under the scheme.

That being said, the value of health insurance coverage cannot be stressed enough. Awareness for the importance of health insurance plans is gradually increasing among the common population of India. Moreover, the pandemic has further underlined the necessity of the same. So, today, more and more individuals are opting for coverage. This might also have led to the jump in the health insurance coverage among families that are not covered under the PMJAY scheme. 

The road ahead

The next edition of the survey would be conducted in the year 2022 and its results would be published sometime in 2023 and 2024. The next edition would be able to shed light on the contribution of the PMJAY scheme in increasing the health insurance coverage in India. So, till the next survey results are out, the full measure of PMJAY’s success is pending to be seen.

What should you do?

Having optimal health insurance coverage has become important when medical expenses have become unaffordable and the pandemic continues to remain a cause of concern. You should, thus, opt for a health insurance policy for yourself and your family members. The policy would cover the medical expenses and provide you with the much-needed financial security in a crisis. If, on the other hand, you are insured under a health insurance plan, check its sufficiency. Ensure that the coverage is high enough to pay for the expensive treatments. If the coverage is low, supplement it by enhancing the coverage at renewal. Alternatively, opt for a super top-up policy which would boost the sum insured while keeping the premiums affordable. 

So, do your bit towards increasing the penetration of health insurance coverage in India. This would not only bump the survey numbers, but it would also be financially rewarding for you.

‘Family’ is the one word which holds your entire world together. While most of you toil day in and day out to provide for your family, a medical emergency might put a big question on the adequacy of such a provision. When any member of your family falls ill, you ensure that the member receives the best treatment. But without a comprehensive health insurance plan, can you afford the cost of such treatments?

Why take a chance when a family floater health insurance policy is available?

A family floater health plan is one that covers all family members under a single policy. Every member can enjoy coverage up to the sum insured and the premiums are affordable. In today’s age, a comprehensive family floater policy has become the need of the hour. Here are some reasons why:

1. High medical costs

   Medicine is advancing by leaps and bounds. So are medical costs. Today, a simple hospitalisation can easily cost tens of thousands and if any treatment is involved, the costs end up in lakhs. As per studies, the average cost of private hospitalisation in an urban area is Rs.31,845/day. (Source: Times of India) Add to it an extended hospital stay and you are looking at a considerable figure. 

   In the face of these high medical costs, you need security which ensures that if there is any medical emergency, the costs would be handled. A comprehensive family health insurance policy gives you this security and becomes important.

2. Increasing illnesses

   While on the one hand medical costs are rising, on the other hand, illnesses are also increasing. Whether it is lifestyle-related illnesses or hereditary conditions, you can find diabetes, asthma, hypertension, and other conditions in almost every household. These conditions increase the chances of medical emergencies and need to be provided for. A health insurance policy covers the complications arising out of these conditions and helps you cover your medical bills.

3. One family, one policy

   The benefit of a comprehensive family floater policy is that it covers all the family members under a single policy. This cuts down on the need to manage multiple policies for multiple family members. Moreover, every member gets insured up to the sum insured allowing them to avail of quality treatments whenever needed.

4. Affordable 

   A family floater policy is cheaper than independent individual policies for each family member. Even when you opt for a comprehensive scope of coverage, the resultant premium can be made affordable with the instalment premium payment option offered under the plans. 

5. Comprehensive coverage

   As the name suggests, a comprehensive health plan provides an all-inclusive scope of coverage, right from the time that you have prescribed hospitalisation till the time that you recover. Moreover, there are other coverage benefits too which enhance the scope of coverage further, like sum insured restoration, maternity cover, OPD cover, air ambulance, and the like. This ensures that all your medical costs get covered under the policy and your out-of-pocket expenses reduce.

6. Customisable 

   Insurers understand that the coverage needs of different families vary. Hence, they allow you to customise the policy as per your requirements. You can choose the family members who should be covered under the policy. Some plans even allow you to include your extended family under the coverage. The choice of the sum insured and tenure is also in your hands. Then there are optional coverage features, called add-ons or riders, which you can add to the base coverage for wider protection at an additional premium.

   Thus, comprehensive family floater plans allow you to customise your policy so that you get the coverage that you need.

7. Tax benefits 

   Lastly, you also get tax benefits on the premium that you pay for a comprehensive family floater plan. The premium, up to INR 25,000, is allowed as a deduction under Section 80D if you are aged below 60 years. For higher ages, the limit increases to INR 50,000. If you also include your parents, you can claim an additional deduction of INR 25,000/50,000 (depending on your parents’ age). You also have INR 5000 for preventive health checkup within the limit of INR 25,000.

These deductions bring down your taxable income and help you save tax.

A comprehensive family floater plan should, thus, feature in the financial portfolio of every family. It not only provides financial security, but it also allows your family to avail of the best treatments without worrying about their affordability.