Health Insurance – Tool For Financial Sustenance Of Your Loved Ones

Ms. Kritika Desai is a primary school teacher and her husband Mr. Anant Desai, a clerk. Ms. Desai always used to worry about the increasing costs of medical and education. She was a wise woman who was acute at foreseeing things and believed in planning. She therefore decided with ther husband to purchase health insurance for entire family. Mr. Desai was however reluctant but she managed to convince him to get a comprehensive health insurance policy for the entire family. Mr. Desai however was fed up paying the high monthly premium he thought to be of no good.

Last month, their son suddenly underwent a hospitalization treatment. The costs were really high. However, their comprehensive health insurance plan saved the family from huge financial expense as the policy itself covered the hospitalization treatment. This made Mr. Desai aware about the significance of this policy.

One must remember that it’s ultimately about his health. Health is wealth. Rising expenses in medical sectors can impede one from availing the required treatment & medical needs during any emergency event.

Comprehensive Mediclaim insurance is the one which will ensure maximum financial coverage for the family.
Advantages of health insurance-
You get timely help and arrangement of funds during emergencies providing great financial assistance

  • It prevents your savings cycle
  • It provides great financial assistance for critical illnesses like cancer & stroke. During critical illnesses like cancer & stroke, one gets financial assistance for his/her treatment. He/she also gets financial assistance for other medical costs as well as his/her miscellaneous needs
  • There’s another great benefit which is related to tax savings. A person is eligible for tax savings as per section 80D of Income Tax Act.

Health insurance policy Vs Mediclaim policy
Firstly, the Mediclaim insurance forms a type of health insurance.
Usually, insurance companies offer 2 types of insurance options. They are indemnity products & benefit products offered by companies.
Indemnity products-
In terms of indemnity products, actual treatment cost is borne by insurance provider. It goes up to sum assured.
The policy holder is required to provide all current medical bills & other vital documents in order to get the claim.
For instance, a person is liable to get a sum assured of amount of Rs 3lacs as per his policy. His cost of treatment is Rs1 lakh. The insurance company will pay only Rs 1 lakh which is actual price of treatment.
Benefit products-
In terms of benefit products, the insurer gives lump sum amount to insured person. This can also go up to sum assured value.
A critical illness policy forms one type of a benefit product. For instance, an insured is found to be diagnosed with cancer. The sum assured amounts to Rs 50 lakhs. The insurance company will pay total amount of Rs 50 lakhs in lump sum to the insured. Submission of bills isn’t required. Once the amount’s settled, policy terminates.