Having Own Health Insurance Is Paramount

Queries

Nitin Singh, Email

I have recently started working. What factors should I consider before buying a health cover? Also, I stay with my parents and are covered under their family floater plan of Rs 10 lakh. Both my parents are still working.

Though you are covered under your parents’ floater plan, the Rs 10 lakh limit is shared. In case of simultaneous hospitalisation, this amount may fall short.

Also, the premium for family floater is decided by the age of the oldest member. Start your own policy with at least Rs 5 lakh coverage, and increase it every few years. In your 20s, health insurance is not an expense, it’s the cheapest investment you’ll make. Having your own insurance policy also builds an early claim-free history for you, which helps reduce premiums later.

Look for insurers with consistent high claim settlement ratios (above 90 per cent) in the past three years. Ensure the policy allows future portability and upgrades.

Opt for policies with minimal room rent capping and no co-payment clauses, which can substantially reduce out-of-pocket expenses during hospitalisation.

Col Sanjeev Govila (retd), CEO, Hum Fauji Initiatives

Devi Sharma, Email

I am 22 and planning to go abroad for higher studies. I am a single child; my father has a Rs 25 lakh corpus for my studies. However, the course fee is around Rs 65 lakh. What options do I have without putting my father in debt?

Taking an education loan is a practical starting point, but don’t stop there. Also look for part-time jobs to tackle the debt early. I’ve seen students pay off 80 per cent of their loans before even graduating!

For US public universities, research/teaching assistantships can be considered, often waiving your entire tuition fees, while providing a stipend. Don’t underestimate direct communication—email department heads and professors expressing your interest and financial constraints.

Merit-based scholarships remain worth pursuing despite competition. Some schools specifically provide funding for foreign students with strong profiles.

Consider the timing too. Spring intake sometimes offers better financial aid than fall due to lower application volumes.

Remember, your father’s corpus gives you a solid foundation. Use it strategically.

Dirghayu Kaushik, Co-founder and CEO, Ambitio

Prashant Shekhar, Email

I’m planning to buy an apartment, but my agent is pressuring me to make a quick decision, citing an upcoming increase in ready reckoner (circle) rates. Will a hike in these rates lead to an increase in property prices, or it’s just a sales tactic?

An increase in ready reckoner or circle rates can have financial implications for homebuyers—but it doesn’t automatically lead to price rise of a property.

Circle rates are government-determined minimum values at which properties can be registered. Stamp duties, registration charges are calculated on either the circle rate or the purchase price, whichever is higher. However, market prices are primarily influenced by demand, location, and negotiation dynamics, so a rise in circle rates doesn’t mean that developers or sellers will immediately raise the prices.

Evaluate the property’s actual value, home loan eligibility, and the total cost of ownership. If you’re buying for the long term, a slight increase in registration costs shouldn’t be a deal-breaker. But if you’re already stretching your budget, remember that every rupee counts.

Sunil Dewali, Co-CEO, Andromeda Sales & Distribution