For Namita (name changed), the cancer diagnosis came right after when she purchased her dream house. Though Namita had a regular health insurance policy, the medical expenses were so high that she found it difficult to pay for her so’s college fees. Many like Namita invest in a health insurance plan but don’t buy a critical illness policy – they think that it’s a regular health insurance policy. But it’s not. A regular health insurance plan reimburses your medical expenses and covers hospitalization costs and day care procedures amongst others. On the other hand, a critical illness insurance plan offers you a lump sum payment if you unexpectedly become critically ill. With the rise in the number of critical illness cases and the high cost of medical treatment, it’s increasingly becoming important for customers to know how to plan for unexpected medical cost. The right way to go about it is to buy a critical illness insurance policy.
How to Plan for Unexpected Health Cost?
Over here we discuss how the right mix of savings and insurance products can help you protect you and your family from the unexpected costs of a serious illness. Consider these tips to plan for unexpected health cost.
Start planning at the earliest: The most basic way to plan for unexpected health cost is to invest in savings schemes and health policies at a young age. Most insurers charge a lower premium for health insurance plans purchased at a young age, as opposed to older, first-time insurance buyers, who have to pay a higher premium. Moreover, you stand to get an increased sum assured if you don’t file any claims for five consecutive years. Remember to revisit your financial habits, and keep your short and long–term goals in mind. Your financial needs will change as you grow older. Make sure your insurance products are in sync with your future needs and if not, revisit them. .
Invest in a critical illness insurance policy: Investing in critical illness plans is one of the best tips to plan for unexpected health cos. Getting diagnosed with a critical illness can be emotionally and physically difficult. Treatment costs for a critical illness can run into lakhs and financial worries can make it difficult for you to focus on your health. A critical illness insurance policy. offers you a lump sum on diagnosis of a specified illness to support you and your family. Critical illness insurance policies allow you to use the money however you wish. This payout, which is tax–free, can be used for medical as well as non-medical expenses such as paying your child’s school fees or clearing your home loan.
Go for an individual health insurance policy along with critical insurance: Another simple way to plan for unexpected health cost is to invest in a general health insurance policy, along a dedicated critical insurance policy . The critical illness policy only covers you in case you are diagnosed of a few specific ailments like cancer, tumors, kidney diseases, etc. You cannot use it for any general ailments like treatments or surgeries un-related to critical illnesses, and so it is important you have both types of health insurance plans in your investment portfolio. The benefits of having two policies can help you wade through difficult times that a serious illness may bring
How to find the right policy?
When it comes to a serious illness, there are many medical and non–medical expenses that you will have to consider. As such, while thinking of how to plan for unexpected health cost you must consider the various costs. These include the expenses associated with travelling for treatment, home medical equipment, assistance at home, and paying your mortgage while recovering and paying for treatments that are not covered under standard health insurance policies, among other things. Ensure you find a critical illness plan that covers the costs associated with such expenses.
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.