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Embedded Value: life and health insurance are more essential today

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Insureds must also ensure that they inform other family members of the policy taken out, its benefits and where the document is kept.

The second wave of the Covid-19 pandemic is sweeping our country. Every day we hear about lives lost due to lack of oxygen or ventilators or even medications specifically needed to treat covid positive patients.

We also hear of young lives, the breadwinners of the family, losing the battle against this dreaded disease leaving behind trails of misery for their loved ones. Behind all this miseries, the most significant reason is the lack of preparation on the part not only of the state, but also of individuals.

Even though instruments are available in the market to protect one’s financial interests in such devastating situations, people hardly bother to consider such products or options. The pandemic has taught a lesson that adequate insurance protection for the life and health of individuals is the most important protection that must be provided against a worst-case scenario. Therefore, insurance is often seen as a necessity alongside bread, clothing, and shelter.

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Need health insurance
Everyone wants the best health care, but it is not free. A health insurance policy is useful in difficult situations when an emergency requires immediate hospitalization. A mediclaim policy can cover most of the expenses depending on the terms and conditions of the policy. Most insurers have ties with hospitals and in such a situation the patient is not required to pay any amount except a small amount as a security deposit.

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The insurer public should be aware that the policies offered in the market have several limitations in fine print. As a general rule, insurers take risks after 30 days from the start date, they exclude coverage for the pre-existing disease for a few years at the start of the contract and they put a condition so that for each loss the policyholder owes him -even pay the hospital up to a certain percentage of the total eligible expenses.

Policyholders should keep these conditions in mind.
Every family must adopt a health policy during and after the Covid pandemic and this must become a permanent habit. Insureds must also ensure that they inform other family members of the policy taken out, its benefits and where the document is kept.

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Need life insurance
On the other hand, a life insurance policy must be taken out well on time and the premium must be paid when due. In addition, the policyholder should get into the habit of reviewing his existing insurance portfolio from time to time and not hesitate to extend the risk coverage with new policies or riders. Initially, the focus should be on maximum risk coverage at minimum cost. Saving through life insurance is a secondary problem. It should also be ensured that the appointment under each policy is updated and if a policy is assigned for a loan etc. this information should be available from the family.

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Insurers’ claims
The filing of a health insurance claim begins with immediate notification to the insurer’s office of the insured person’s hospitalization. Third party administrators who are usually represented by an employee in hospitals take charge of the matter and ensure that the hospital provides services without requiring family members to pay the fees instantly.

Good hospitals have connections with major insurers and ensure smooth bill settlements with patient insurance coverage. Some claimants may face complications, however, but this could be resolved at the insurer’s office. However, health insurance protects them from financial crises. Covid patients are fully covered by any standard health insurance policy. For this pandemic, a separate policy is not necessary.

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The death of the policyholder due to Covid is covered by any life insurance policy. The procedure for resolving claims for cases where the cause of death is Covid is similar to handling claims resulting from death from natural causes.

The writer is the former Managing Director and CEO of SUD Life

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