Page 48 - Insurance Times December 2019

deaths occur every day. That is taken into account along PRESS RELEASE
with the number of beds available in Delhi, including bed
occupancy and the average stay of a patient in a hospital. Concern for Children’s Financial
Nowadays, most insurance coverage reimburses hospitals
and doctors based on the principle of DRG (Disease Related Future, Young India’s Key Trigger
Groups). In this, similar disease patterns get reimburse- to Buying Term Insurance
ment.
Max Life Insurance Company Ltd. (“Max Life” / “Com-
Take Ayushman Bharat Yojana. On paper it says that it pany”) revealed that while young India feels grossly
covers a family for up to Rs 5 lakh per annum. But this is underprepared to face the financial instability caused by
not true. Most treatment packages are capped. For a family eventualities of life, their children’s financial future is the
to spend Rs 5 lakh a year will, probably, require all five foremost concern that influences them to purchase term
members of the family getting admitted multiple times a insurance.
year. As per the ‘India Protection Quotient’ survey conducted
by Max Life in association with Kantar IMRB, while ‘get-
The average payout of an admission in Ayushman Bharat ting lump sum at a future date for my child’s education’
Yojana is only Rs 20,000. Packages which provide Rs 1 lakh was a term buying trigger for about 44% urban Indians,
for treatment are for uncommon diseases that afflict once at 48% it was the biggest trigger for millennials with kids.
in a lifetime, for example a heart bypass.
Aalok Bhan, Director and Chief Marketing Officer, Max
Life said: “There are several key milestones in parents’
Internationally, OPDs are covered under yearly insurance life that they go through which children’s are growing,
but with a rider. They do not cover dental treatments, and right from nurturing values, to a good quality education
drug prescriptions are with co-pay (a fixed amount for a
in the early days and then to supporting their higher
covered service paid by a patient to the provider of ser-
education and matrimonial plans. To achieve such mile-
vice before receiving the service). Whenever there is co- stones without any hassles, it is important to undertake
pay, the chances of misuse of insurance policy are low.
financial planning judiciously. It is reassuring to see that
young India understands the need for owning term in-
The Medical Council of India's ethics regulation 7.7 can surance to secure their family’s future. Birth of child is
cancel the licence of a doctor if he or she is involved in the biggest trigger for millennials to buy term insurance,
creating any document which amounts to fraud. Registered which confirms that children continues to be the fulcrum
medical practitioners are in certain cases bound by law to of financial planning for Indian households.”
give certificates, notifications, reports and other docu-
ments signed by them in their professional capacity for As compared to the national average of 47%, awareness
subsequent use in courts or for administrative purposes. of term products is a comparatively higher at 50% among
millennials with kids. The same is an indicator that the
Any registered practitioner who is shown to have signed younger generation, who have young kids, have higher
any such document which is untrue, misleading or im- awareness of benefits arising from ownership of term
proper, is liable to have his or her name deleted from the insurance and are investing in it to ensure that their
register. Similarly, under Indian Penal Code 193, there is a children’s aspirations are not compromised even in case
punishment of up to seven years for issuing fabricated of any eventuality.
documents along with a fine. Millennials with kids prioritize saving for children’s edu-
cation and marriage over retirement planning
Ans. of November '19 Insurance Quiz contest While nearly half of urban Indian millennials in the age
1. Reliance General Insurance group of 25 – 35 years believe in spending more on
2. Shanai Ghosh travel/ luxury and are not even thinking about financially
3 Shriram Transport Finance protecting their families, millennials with kids are far
4. Star health Insurance more conscious of creating corpus to support life stage
5. Bajaj Allianz Life Insurance goals related to their children. A significant 79%
6. Religare and PNB Metlife millennials with kids save for their kid’s education while
7. Beazley 55% save for their kids’ marriage.

48 The Insurance Times, December 2019