The buzz around health has gone up in the last two years. The pandemic brought the world to a standstill and no wealth mattered more than your health. Hence, it is important to keep a backup your health with some form of protection. Healthy lifestyle and good eating habits are a few sustainable ways; however, it is best to be prepared using medical insurance plans.
Health insurance policy ensures financial coverage for the different ailments covered under the policy. Illness is an unpredictable occurrence, and a health insurance cover is the best backup option. It helps you relieve of any financial stress that a hospitalisation to you or your family member brings.
A few buyers contend that emergency funds are an alternative to buying health insurance covers. This article discusses the three options that you can pick from—individual plans, group policies or emergency funds.
Contingency funds
Health ailments not only mount mental stress, but also financial stress in the process. Hence, it is best to have a handful of cash always ready. But the concern with rising medical inflation is no one can accurately predict the cost of treatment. Hence, it always leaves a room for doubt regarding the sufficiency of such contingency funds. While contingency fund does not mean only cash, it can also be in the form of liquid savings like an FD investment, savings account balance or other liquid funds.
In addition to that, a second case of hospitalisation in the family within a short time frame will mean lower savings available for such subsequent treatment. Since ailments are unpredictable in nature, it is impossible to estimate when and how much amount will be adequate. Therefore, it is essential to create a contingency fund, but shouldn’t be exclusively relied upon. * Standard T&C Apply
Group insurance plans
Group insurance plans are also popular as a corporate insurance policy for its offering to employees in the corporate sector. This policy offers coverage to all those associated with the group. These individuals can either be members of such group or subscribers to it. While the coverage in a group insurance plan is essentially offered to its members, it can be extended to the family members too. With a large number of buyers that purchase a group insurance plan, the prices for such policies are affordable. Although the validity of such coverage remains only till you are in employment or associated with the group. Thus, it is not advisable to solely depend on a group insurance plan too. * Standard T&C Apply
Individual insurance plans
Among the different types of health insurance plans that are available, an individual policy is a steppingstone for understanding health insurance plans. Offering coverage for only one beneficiary, i.e., the policyholder, it offers the maximum level of customisation offered under a health insurance cover. Individual policies are available in different types which can either be a government sponsored scheme like Arogya Sanjeevani Bima cover, or others offered by private insurance companies. * Standard T&C Apply
When you compare all the three options, no option is mutually exclusive and hence, a contingency fund with a group insurance coverage that extends to your family members along with an individual plan is an all-round solution to tackling medical ailments. To manage the premiums for these plans, a health insurance premium calculator is useful. When you combine all three alternatives, the quantum of contingency fund can be lowered considering you have the backup of health insurance plans. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
