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Who will pay when you’re sick? Read how health insurance can save you from wealth damage

The current pandemic that has struck millions of people with the deadly coronavirus has made the whole world sit up with worry for their healthcare. Hospitals that have been overwhelmed have increased costs for treatments and huge medical inflation that is increasing 12% every year. If not anything it has made us realise that a medical emergency can come anytime and the best way to deal with any of it is through the help of a healthcare plan.

To protect your family, you need quality treatment and superior medical facilities. Access to such good services comes with bearing the financial cost of it. Medical emergencies always bring a lot of tension and worry. So, getting a health insurance plan is the best option that can assure a worry-free future for you and your family. Health insurance apart from covering your costs is the only thing that can protect you from medical inflation.

For instance, one of my client before coming to me had medical insurance unfit for his medical emergency. He had to redeem 60 lakhs from their retirement corpus to get treatment. And another had to take a loan of 50 lakhs to pay his hospital bills. All this because of an unreliable health corpus. Getting appropriate health insurance does not only covers your health but also protects your wealth.

To understand how a health insurance plan works, you have to be clear of how they work and how they can protect you and your savings.

  1. Cashless Hospitalisation
    Cashless Hospitalisation is a health insurance service under which hospital facility costs are paid by the insurer to the hospital on the approval of a Third Party Administrator.
  2. Reimbursement
    In reimbursement, the cash paid to the hospital for their services will be reimbursed afterwards. Reimbursement can only be claimed after submission of documents to the Third Party Administrator.
  3. Third-Party Administrator
    A third-party administrator is a healthcare company authorised by IRDA/ It links the insured and insurance company when processing and settling cashless claims. Value-added services like Ambulance Costs, Helplines and medical supplies are also provided by third party administrators.
  4. Health Card
    The Health Card is like an identity card under Health Insurance through which you can get cashless hospital facilities.
  5. Network Hospitalisation
    Many times Hospitals have a direct connection with insurance companies so they can provide cashless treatment in their agreement with the insurance company.

Now that you have understood how health insurance can be claimed and how it works. Health Insurance has a lot of benefits and advantages that can protect your future especially in the time of emergencies that cost a lot.

Insurance is just risk management, we transfer risk from our family or from our business who can’t afford it to an insurance company who can afford it.

  1. Protects your savings
    For unforeseen illnesses and emergencies such as the pandemic, health conditions can empty your savings for even small medical tests and medical bills. With a suitable health insurance plan, you can pay for your hospital bills without having to take a chunk of money from your savings. Health Insurance even helps in availing tax benefits for an amount of up to 25,000. The tax can be claimed on premium paid to cover for self, spouse and/or children. The deductible premium limit goes up to 50,000 for claiming insurance for senior citizens.
  2. Safeguards family health
    Health Insurances brings an umbrella plan for all of your dependant family members. This plan protects the whole family in case of emergencies, and hospitalisation costs, free health check-ups, the inclusion of pre-existing diseases etc.
  3. Counters Inadequate Insurance Cover
    If you already have health insurance check exactly how much coverage it offers and what it protects you against. Be sure that your health insurance covers possible diseases and illnesses that run in the family that can help you in times of emergencies. Because Medical costs are increasing considerably, and having better health insurance ensures your health. It is okay if you do not have a good plan now, but increasing the cover slowly with time will always help you.
  4. Saves you from Medical Inflation
    With the advancement in the medical world and its technologies, new diseases coming in, the cost for treatments will rise as well. The cost of consultation, medicines, medical tests, ambulance and room cost etc. will also increase over time. You will need proper health insurance to help cover your finances from these costs and beat the burden of medical inflation because quality treatments put a huge hole in your pocket that only health insurance can help you bear.

My final advice to you is to stay insured for a safer tomorrow. Get critical insurance for critical health insurances can strike anytime without informing you. Put no second thought to it and buy health insurance right away. If you are financially handicapped you will have to skip operations and medical treatments which will only risk your and your family’s life. Protecting your family is a priority and it should not be taken lightly. Health insurance from a trusted company is the best possible investment to make.

Manoj Amarwal

Saarthi Dream
(Saarthi for your financial dream)