How to Claim Health Insurance Benefits Without Tears?
While the importance of health insurance is well understood to most people, the process of claiming health insurance benefits still remains patchy. How you make a claim depends on which one out of the two types of health insurance claims are you making:-
a) Cashless Claims for Network Hospitals: Filing a health insurance claim through the cashless route is fairly straightforward. All you have to do is inform your insurance company by approaching the TPA (third-party administrator) or the insurance desk at the hospital with your health card and ID card.
Please keep in mind this important point though: Most of us serving in the corporate generally have two insurance policies: one given by the employer and the other purchased on our own. We can use both the policies for claiming benefits if the limit of one of the policies gets exhausted. But for this, you must declare one of the policies as the primary one and the other as secondary well in advance rest it be constructed as a case of fraud where you’re trying to claim benefits from both policies together.
It is typically advisable to utilize your company-sponsored insurance first as it will save the policy renewal cost of your self-purchased policy. Some diseases or treatments are covered after a certain waiting period i.e Maternity Benefits usually have a waiting period of 2 years. Using the older policy first becomes more advisable.
b) Reimbursement Claims for Non-Network Hospitals: In this case, all payments have to be paid for by the insured person initially to the hospital, which is later reimbursed by the insurance company after all paperwork has been processed. Be sure that the policy claim is filed after going carefully through the ‘Checklist of Documents’ to be submitted to an insurance company, which is usually within 2-4 weeks from the hospital’s discharge date. Post successful submission of documents claim gets settled within 45 working days.
(Contributed by Jatin Uppal, Deputy Manager, Hum Fauji Initiatives)
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Money Lessons for Children
As a parent, you want to provide the best for your children. Ensuring their safety, security and laying a solid foundation that they can build upon to achieve success in life, is every parent’s thrust area. However, one crucial aspect that often gets overlooked is teaching your children the importance of money management. By setting a positive example, you can play a pivotal role in shaping your children’s attitudes, thoughts and values toward money. To truly empower your children, it is essential to impart the gift of financial literacy from a very young age.
Learning about money is an important part of growing up. It helps children understand how to make smart choices with their money. Here are some easy money lessons for children to learn:
- The value of money: Children should understand that money is something that is earned and that it can be exchanged for goods and services.
- Saving money is important: Encourage them to save a portion of their allowance or money they receive as gifts. Show them how to put money into a piggy bank or savings account and explain the benefits of saving for the future.
- Budgeting: Teach children how to create a budget and stick to it so that their money allowance lasts the full month. Show them how to prioritize their spending, understand the importance of not overspending and also learn to think about what they need and want, rather than impulsive purchases in the malls or online.
- Earning money is important: Teach them about different ways to earn money, such as through allowance, chores, or part-time jobs. Show them how to set short-term financial goals and work towards achieving them.
- Giving is also important: Encourage children to give back to others by setting aside a portion of their money for charitable causes. Show them the importance of being generous and helping others in need.
- Be open to learning: Encourage children to ask questions and be curious about money. Take the time to explain simple financial concepts to them, preferably through practical examples, and be open to discussing money-related issues.
It’s important to remember that learning about money is a lifelong process, but starting early can give your children a big head start.
(Contributed By Manish Kumar, Relationship Manager, Team Vikrant 2, Hum Fauji Initiatives)
Don’t Buy an Illiquid Asset As Your First Investment
Have you recently heard about the lucrative property deal in your neighborhood and are considering buying it? Let’s check out, should you do so?
Due to beliefs drilled into us since time immemorial and passed down through generations, even very young people first want to purchase a house of their own as their first asset. Even 25- or 35-year-olds, still unsure of where their careers will take them and unwilling to plan for their retirement, want to acquire a retirement house!
What happens then? Most people cannot buy a house straight away due to the massive costs involved. Consequently, they take big loans and young families get down to paying huge monthly installments right from their initial years of employment onwards. Consequently, a life of carefree abandonment gets clipped to worrying about the huge debt, own children are not sent to the best schools because the monthly surplus is low, and there’s no liquidity available for anything else.
What happens when a job loss occurs, if working in the corporate?
How about the ‘concentration risk’ of investing own everything in just one asset class, or rather, one single investment which is against the basic principles of investing?
Most properties produce long-term returns that are ordinary or below average and generally not comparable even to low-risk investment options like fixed deposits. Even if you rent out your property, you typically make far less monthly income than is provided even by the lowly bank FDs.
What about huge capital appreciation in real estate? Need we say more than the fact that most real estate investments have given zero or negative returns in 2013-2021, that’s Nine long years!
If one wants to save at young age, a systematic investment plan in mutual funds will serve the same purpose, but with greater flexibility. The investor has the liberty to skip a couple of installments if there is a cash flow problem, he can draw from the investment in case of an urgent need, and the value of the investment will also appreciate much better over time.
Prudent Investing leads to Riches; Investment with a Herd Mentality leads to Rags.
(Contributed by Aman Goyal, Associate Financial Planner, Team Prithvi, Hum Fauji Initiatives)