Need for medical insurance

"Medical insurance" is an insurance, in which the person who purchases the insurance is covered for all his medical expenses and their by need not spend for any of his medical or hospitalisation bills. Many people tend to shy away from this very important type of insurance. Almost every company in India offers group employee medical insurance and hence people feel that they do not need any insurance at present. This notion is completely wrong. People do not think what will happen if they loose their job or after they retire.

For eg: A person in the age group of 20-25 needs to pay Rs6000/- per year for a medical insurance of 3 lacs, where as a person in the age group of 50-55 needs to pay Rs15,000/- per year. If a person is having medical insurance for a longer period of time then he/she also gets a 5% discount in the consecutive policy renewal premiums. Also when he reaches the age group of 50-55 he can comparatively pay a lesser premuim for a higher sum insured.

While writing this article another story came to my mind and I felt I should share it with you guys. I once got a call from a friend of mine and he told me that he was in great debt and needed some help to get out of it. I asked him what was the reason that he went deep into debt. The reason was simple, he was hospitalised and as he did not have any medical insurance, he had to spend his own money. All his credit cards where used to the maximum limit. His fault..... not having a medical insurance.

So the first step in the path to achieve financial freedom is to get insured and out of it the top priority goes to the medical insurance. Medical insurance will take care of our sudden hospital bills and will make sure that we do fall down the ladder as we keep on climbing the financial ladder to achieve financial freedom.