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3 Cs Of Health Insurance That Make It Indispensable

The Kumar family is in a deep shock. A mild stroke has paralyzed Mr. Kumar’s right side and it will take around 6 months for him to fully recover.

Besides the loss of income, the family’s investments are down by more than Rs.7.50 lakhs on the treatment costs. Plus, going forward, paying the monthly home loan EMIs will be a big challenge, not to mention the day-to-day living expenses.

This is indeed quite tragic.

More tragic, however, is that this is not a one-off case. Instances of medical-related financial bankruptcies are very common.

What makes the situation worse, is the availability of an excellent solutionHealth Insurance. Yet only a tiny percentage of Indians have such a policy. Most people still depend on own resources for medical treatment.

Nowadays, with infinite information available on the internet at the touch of fingers, this ignorance about the benefits of health insurance is really (really) surprising and shocking.

The biggest advantage of a health cover is the COST.

Medical bills, even for a few days of hospitalization or minor surgeries, easily hit the Rs.1-2 lakhs mark. And, for treatment of critical illnesses, the costs are normally in the range of Rs.10 to 20 lakhs. Only the affluent few can manage these expenses, without much financial stress

Moreover, every year these costs go up significantly. In recent times, healthcare inflation has been generally in the range of 10-15% per year.

In contrast, a simple health insurance policy, to protect against minor ailments, would probably cost a mere Rs.3000-7000 as annual premium, for the entire family. And, with just around Rs.10,000-15,000 as yearly premium, you could protect the family even against major medical problems.

As is obvious, the premium payable is tiny, compared to the enormous savings on the treatment costs.

Just think of the huge financial relief for the Kumars, had they been medically insured.

Besides, with health insurance cover you safeguard your wealth for other critical needs such as children's education, marriage, retirement etc.

Cost-Convenience-Choice in health insurance offers excellent protection.

Second advantage is the CONVENIENCE.

Just walk into the hospital, get yourself treated and walk out. The insurance company (or its third party administrator) will settle your medical bills with the hospital. (You may have to, at best, pay for some minor items not covered under the policy). This is known as “cashless” facility.

Imagine if you had to first pay your bills:

You may have to break your fixed deposits, thereby losing interest; or off-load your mutual funds / stocks at low prices, as the markets are down; or redeem other investments at a loss; or borrow money from relatives and friends. And then, go through the massive paperwork to claim your reimbursement.

With the cashless option in health insurance policies, all these extra costs and inconveniences simply disappear.

Finally, there’s the CHOICE.

There are 25+ insurers spread across public sector, private sector and standalone companies.

Plus you have different types of policies such as conventional indemnity-based policies, critical illness covers, daily hospitalization cash plans, OPD covers and illness-specific policies. 

Further, there are options like individual policies, family floaters, top-ups and super top-ups.

With this wide variety, you can build a comprehensive insurance cover against the risk of medical emergencies, in a highly cost-effective manner.

Concluding, this Cost-Convenience-Choice combo in health insurance, offers excellent protection against the financial risks of medical problems and their treatment.

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