Health insurance: Sooner the better
- India’s surgical strikes along LoC show intent to act strongly against terrorists
- US NSA Susan Rice calls up Ajit Doval, says 'expect Pakistan to take action against terror'
- PM Modi holds Cabinet Committee on Security meeting; Rajnath, Jaitley, Doval present
- Narendra Modi's review meet on MFN status to Pak postponed to next week
- Day after sharing terror information with Pakistan, NIA revises details
There are increasing number of people falling prey to lifestyle diseases at a young age. At the same time, the cost of health care is rising exponentially. As a result, paying off healthcare bills is crippling Indian households. Keeping this scenario in mind, investing in a comprehensive health insurance plan to safeguard the interest of the family, has become imperative.
It is, however, critical to have a sound understanding of the structure and the benefits of different health insurance products before investing. Health insurance plans can be broadly classified in two categories, namely, indemnity-based and benefits-based. Under an indemnity based plan the insured is paid the entire amount that he spends on medical treatment, provided it is equal to or less than the sum assured. Benefits based plans are mainly critical illness plans under which the insured can claim the entire sum assured for the treatment of a critical illness specified in the policy.
Indemnity (typically like a mediclaim) and critical illness plans serve two different purposes, and both must be included in the health insurance portfolio. Investing in mediclaim can prove extremely useful in case of minor ailments such as food poisoning or appendicitis, as all the hospital expenses including tests etc are taken care of by the insurer. However, they become futile in case the insured contracts a critical illness such as cancer which demands much larger expenses over long-term.
A critical illness (CI) plan can be extremely beneficial in this case as the lump sum received by the insured can be used to get the illness treated by best professionals.
Before investing in any policy, the sum assured, the entry age, the diseases covered, the term and the premium are some of the critical factors one must consider. While a policy with low premium should be considered, the number of critical illnesses covered must also be given due importance.
- The emergence of Akhilesh Yadav as a popular leader is an indicator of the same-old in the SP
- Poverty caused by expenditure on health has doubled in India in the past 15 years
- India’s aggressive response to Nawaz Sharif’s lies at the UN was a clear indicator of the things to come
- People, policymakers can be led by subtly influencing their choice architecture
- Edit - Defining moment
- Edit - Come clean