It's a well-known fact that smoking causes an adverse effect on your
health. You must have seen the warning message on all cigarette boxes -
'Smoking is injurious to health'. Smoking tobacco is a root cause of 30%
of all cancer deaths and causes 16 times higher risk of heart attack.
There
are almost 120 million smokers in India. As per World Health
Organization, India accommodates around 12% of the world's smoking
population. The number of men smoking tobacco has increased from 78
million in year 1998 to 108 million in the year 2015. Tobacco
consumption is accountable for the death of 6 million people each year.
Direct tobacco consumption accounts for over 5 million deaths and 0.6
million deaths are due to exposure to second-hand smoke. Considering
serious public health risks, the Government has banned smoking in public
places from 2nd October, 2008.
Not only your health, it also
causes you to pay higher premiums for a health insurance policy, due to
increased health risks and shorter life expectancy. A nonsmoker however,
gets premium discounts as a reward to lead a healthy lifestyle. Being a
smoker, it is advisable not to hide your smoking habit from your health
insurance company, as it helps you to cover the smoking-related health
issues.
There is a wide curiosity among people, how smoking
impacts the health insurance and its cost. Let's educate yourself about
smoking and its impact on health insurance policy.
Smoking - What It Includes
Smoking
includes inhalation of of the smoke of burning tobacco in the form of
cigarettes, cigars and beedi. Whether you are an occasional smoker or
frequent smoker, you will be considered as a smoker under the health
insurance policy.
Smokers can buy health insurance, however an
insurance company may charge extra premium or reject your application
for insurance, depending on the number of cigarettes you smoke on a
regular basis. A smoker may also have to go through additional health
check-ups that can help an insurance company to ascertain the risk
factor and then charge the premium amount accordingly.
How Smoking Affects Your Health and Insurance Premium
Smoking makes the serious impact on your health, some of them are detailed below.
Circulatory System:
Smoking results in increased risk in the heartache and blood pressure.
Building up of fatty acids could resulting to atherosclerosis.
Immune System:
Smoking results in severe and long lasting illnesses. Smokers are more
prone to develop ulcers, cancer, pneumonia, high blood pressure,
bronchitis, and other viral/bacterial/fungal infections.
Respiratory System:
Smoking may damage lung functions and breathlessness. It may cause
damage to the air sacs of the lungs, increased chance of developing
chronic bronchitis.
Oral Health: Smoking can lead to tooth loss, tooth staining, gum disease which may increase the risk of tooth decay.
Cancer: Smoking for a long time also causes cancer to various body organs.
When it comes to a health insurance policy,
an insurance company considers the magnitude of illnesses and deaths
caused due to smoking and that's why, smokers need to pay higher
premiums to avail health insurance cover. Typically, the insurance
companies charge around 15 to 20 percent higher from a smoker
policyholder. Those who smoke would need to undergo additional medical
checks, before the insurer issues you the policy.
Let's understand the difference of premium between a smoker and non-smoker individual.
Ritesh
(non-smoker) at 30 years of age buys an individual health plan with Rs 5
Lacs coverage, for 1 year policy term, the chargeable annual premium
amount is Rs 4,656. However, Raj (smoker) is buying an individual health
plan, he is charged with an annual premium amount of Rs 7,552. An
increase in premium amount is only due to the fact that Ansh lies in the
smoker category of premium. We can see Raj is paying Rs 2896 extra on
account of smoking.
mercredi 22 mars 2017
jeudi 16 mars 2017
How Your Business And Workers Benefit From Supplemental Insurance
As healthcare costs continue to rise, employers have started to
shift the burden of health care costs onto their employees. Some have
even cut back on employer-paid benefits. The health-care law requires
most people to obtain and most employers to offer major medical coverage
with certain essential benefits. Even so, what workers pay
out-of-pocket through these plans keep rising as employers try to
control their own costs.
A 2015 report revealed how employers are still looking for ways to reduce expenses by pushing costs onto workers in the form of increased deductibles, premiums and copayments. By offering supplemental or voluntary insurance to employees, this can provide financial protection in the event of a serious accident or illness. Three reasons why supplemental insurance is essential for employees are:
Healthcare cost increases are outpacing raises
According to a report, 31 percent of employers increased employees' share of premium, 30 percent increased employees' copayments, and 21 percent implemented high-deductible health plans. Those are big expenses hitting employees' wallets, but salary increases are not keeping up. A recent Kaiser Family Foundation study found that deductibles have risen six times faster than workers' earnings since 2010.
Out-of-pocket limits are high, even for higher-paid employees
The average out-of-pocket expense is approximately $7,000 for individuals and $14,000 for families, and that is only for covered essential health benefits. Yet, a whopping 52 percent of employees have less than $1,000 to pay for out-of-pocket expenses associated with an unexpected serious illness or accident, and 28 percent have less than $500.
Workers tend to choose price over quality, which may mean less coverage than they realize
With rising costs, it is tempting to choose health insurance based on the monthly price tag. In fact, 30 percent of employees say monthly premium is the most important factor when choosing a major medical insurance plan each year. A lower-cost plan may mean short-term savings, but could eventually add up to significantly higher out-of-pocket costs.
Employees need a financial safety net. Benefits received from supplemental insurance have long served as a way to help protect employees when they are sick or injured, regardless of their major medical insurance coverage. Some of these benefits include vision, dental, pet insurance, short-term disability, accident, critical illness, and hospital indemnity. Supplemental benefit recipients can use money received from these products to help pay for their daily living expenses, such as rent, mortgage payment, groceries, child care, and medical bills during the time the insured is unable to work.
When companies add voluntary products to their companies' benefits package, they can raise employees' level of satisfaction and help them feel more financially prepared to cope with possible life-changing events. On the other hand, employers can experience lower operational costs and save money in the process. The result is a win-win situation for both employer and employee.
A 2015 report revealed how employers are still looking for ways to reduce expenses by pushing costs onto workers in the form of increased deductibles, premiums and copayments. By offering supplemental or voluntary insurance to employees, this can provide financial protection in the event of a serious accident or illness. Three reasons why supplemental insurance is essential for employees are:
Healthcare cost increases are outpacing raises
According to a report, 31 percent of employers increased employees' share of premium, 30 percent increased employees' copayments, and 21 percent implemented high-deductible health plans. Those are big expenses hitting employees' wallets, but salary increases are not keeping up. A recent Kaiser Family Foundation study found that deductibles have risen six times faster than workers' earnings since 2010.
Out-of-pocket limits are high, even for higher-paid employees
The average out-of-pocket expense is approximately $7,000 for individuals and $14,000 for families, and that is only for covered essential health benefits. Yet, a whopping 52 percent of employees have less than $1,000 to pay for out-of-pocket expenses associated with an unexpected serious illness or accident, and 28 percent have less than $500.
Workers tend to choose price over quality, which may mean less coverage than they realize
With rising costs, it is tempting to choose health insurance based on the monthly price tag. In fact, 30 percent of employees say monthly premium is the most important factor when choosing a major medical insurance plan each year. A lower-cost plan may mean short-term savings, but could eventually add up to significantly higher out-of-pocket costs.
Employees need a financial safety net. Benefits received from supplemental insurance have long served as a way to help protect employees when they are sick or injured, regardless of their major medical insurance coverage. Some of these benefits include vision, dental, pet insurance, short-term disability, accident, critical illness, and hospital indemnity. Supplemental benefit recipients can use money received from these products to help pay for their daily living expenses, such as rent, mortgage payment, groceries, child care, and medical bills during the time the insured is unable to work.
When companies add voluntary products to their companies' benefits package, they can raise employees' level of satisfaction and help them feel more financially prepared to cope with possible life-changing events. On the other hand, employers can experience lower operational costs and save money in the process. The result is a win-win situation for both employer and employee.
How reasonable it is for businesses to want to reduce payroll
taxes and lower health insurance expenses. Contact us for a 15-20 minute
visit to discuss and put together a plan to lower your operational
costs. And, if we do, it will be at no cost. That's right, it won't cost
you a penny. For working individuals who are in a position or want to
do it alone, we have a plan for you, too. With nearly 60 years of
providing financial protection to more than 50 million people, our
office has the experience in making your future somewhat brighter.
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