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Are you aware of the guaranteed renewability feature in health insurance?
If not, this blog post is worth reading.
These days, Health Insurance policies come with guaranteed renewability feature.
This is a kind of rule, which allows policyholders to renew their policy throughout their entire life.
It’s a sign of great relief, especially for those with no post retiree mediclaim plan.
Let’s throw light on this rule.
Guaranteed Renewability
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced the ‘Guaranteed Renewability’ of Health Insurance Policies in India for life with continuity of benefits. This has been done for the benefits of policyholders.
However, this facility doesn’t just benefit policyholders, but policy providers too because it ensures a longer flow of insurance premiums.
Delve a bit deeper to understand what the Guaranteed Renewability rule entitles the policy buyer, its impact on insurers, and the pricing factor.
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Taxes are one of the major revenue for a country in where taxes are collected from citizens, companies, investors and so on to generate economy. There have several impacts of taxes due to economic growth whether it is positive or negative impacts. According to Bofah (2003), taxes refer to the revenue that is collected by the government to provide services and finance themselves. According to the theory of tax competition, the government will reduce the taxes on mobile asset through the occurrence of globalization due to rise in economic growth in a country. Change in tax rate also will give the different impact to an open economy. According to Bretschger (2010), he found negative impacts of corporate taxes on openness and total tax revenue to the economic growth in 12 OECD countries. He also mentioned on the tax competition theory that argues that, when tax rate of capital is reduced, it will cause the capital inflow to a country. This is because; the tax rate is one of the cost for capital holder (Bucovetsky, 1991 and Wilson, 1991). These two researches were found that private return on investment is influenced by the changes in capital taxes.