Health Insurance - Why Do You Need a Health Insurance? | ICICI Prulife

Understand Health Insurance

Health Insurance Basics ď ľ

Health insurance acts as a financial shield and covers your medical expenditure in case you fall ill. Pay your premiums on time and the policy gives coverage to the policyholder subject to fulfillment of other terms and conditions. Fixed benefit health insurance policies pay a fixed amount of money following a claim and without any submission of bills from the policyholder, while traditional policies provide reimbursement for the money spent on actual medical treatment. Health insurance in India is offered by general insurance companies and life insurance companies.

Difference between Mediclaim Insurance and Fixed benefit health insurance plans 

Mediclaim Insurance policies are indemnity-oriented plans. They reimburse the policyholder the cost of medical expenses up to the sum assured. The policyholder is required to submit hospital bills detailing the actual expenses incurred, and a successful claim can be either cashless i.e. directly to the healthcare provider, or to the policyholder as a repayment. These policies may have some limitations while providing cover for critical illnesses, heart and cancer disease which may require special health insurance cover or fixed benefit cover plan.

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In comparison, fixed benefit health insurance plans give you cover against specific diseases or conditions including heart ailments and cancer. These new-age policies give you the claim amount on first diagnosis irrespective of the actual medical costs. You don’t need to find a network hospital or file for reimbursement claims.

This is because fixed benefit health insurance plans send you the cover amount as soon as a diagnosis is made. So, you can get treated at a hospital of your choice.

Why do you need a health insurance plan? 

Medical emergencies - They can cause huge financial burden to people if they do not have health insurance. The cost of medical treatment rises each year and there are several disease which need extremely expensive treatment.

Health insurance can cover your treatment expenses in such cases.

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Increase in medical costs - Healthcare treatment costs are rising. Total cost of cancer treatment can be `23 lakh* if you include chemotherapy, targeted therapy and PET scans. Heart ailments can cost `20 lakh including surgeries and post hospitalization follow-up. You need an alternative way to get treated. This is where regular health insurance helps.

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A necessity - In today’s economy, one cannot rely solely on traditional avenues like family support and emergency savings. The high cost of medical treatment has made health insurance a necessity for your health and financial security.

Why do you need a fixed benefit health insurance plan? ď ľ

Extra protection - Regular health insurance plans can provide you with financial relief when you have incurred treatment charges. Fixed benefit health plan works as a filler to pay for any possible expense that is not covered by the regular health insurance plan.

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Timely treatment - Early intervention is more likely when you have fixed benefit health insurance. With a regular insurance plan, a high medical expenditure most often prompts people to delay their treatment. This wait can lead to the condition becoming more serious, and even life-threatening.

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Complete freedom - Since the payment is based on diagnostic report, you are 100% free to choose the place, time and medium of treatment.