Medical emergencies can strike without any warning. They do not just affect your health but also put a major dent in your finances. In India, out-of-pocket health expenditures account for 62.6% of total health expenditure, which is one of the highest in the world. It leaves millions of families vulnerable to financial hardship when medical crises occur.
This is where health insurance comes in. Let us understand what it is and how it helps to protect your finances.
What is Medical Insurance?
Medical insurance or health insurance covers the cost of medical and surgical expenses. It helps you pay for hospitalisation bills, doctor fees, medicines, diagnostic tests, pre- and post-hospitalisation expenses, and daycare procedures, to name a few.
There are different types of health insurance plans, such as individual plans, family floater plans, senior citizen plans, and critical illness covers.
How Does Medical Insurance Ease Costly Medical Burdens?
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Coverage for Expensive Hospital Treatments
The modern methods of treatment are expensive. Whether it is dialysis, surgery or cancer therapy, the bills can quickly add up. A good health insurance plan takes care of these costs, so you do not need to think twice about getting quality treatment for your condition.
For instance, ICU care for COVID-19 patients across major cities in India crossed Rs. 2 lakhs in many cases. Those with insurance did not have to worry about the payment.
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Provides Cashless Hospitalisation
Insurers have tie-ups with thousands of hospitals. If you go to one of these network hospitals, you can get cashless treatment. It means that you do not have to pay any out-of-pocket expenses except for non-covered items in the policy, such as personal use items or food. The insurer pays the hospital directly.
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Covers Pre- and Post-Hospitalisation Costs
It is not just the hospital stay that costs money. There are associated tests, medicines, and follow-up procedures before and after admission to the hospital, which also add up.
When you get the best health insurance plan, you get 60 days (before) to 90 days (after) coverage, reducing your total out-of-pocket spending.
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Daycare Procedure Coverage
Many modern treatments do not require full day stays at the hospital. For instance, cataract surgery, chemotherapy, dialysis and even some less invasive cardiac procedures get completed within 24 hours. They are called daycare procedures and do not require an overnight hospital stay.
Medical insurance can help cover these procedures as well, which means even for short visits to the hospital, you do not have to burn a hole in your pocket.
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No Claim Bonus
If you do not claim your policy in a year, many insurers offer a No Claim Bonus. This increases the sum insurance coverage by 50% or even more without raising the premium. It simply means that you get more coverage for the same price over time. This is a very smart way to stretch your money without further expenditure.
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Covers Emergency Services
Emergencies like accidents require immediate attention, which often includes ambulance services. Insurance policies usually cover emergency ambulance charges, which can range in cost depending on distance and urgency.
It may seem like a small amount, but during an emergency, it can add up to the total bill. Hence, with health insurance, you do not have to worry about paying for this.
What to Look For While Choosing a Plan?
- Sum Insurance – Select the amount which matches the medical costs in your city.
- Network Hospitals – Check if your preferred hospital is on the insurer’s list.
- Claim Settlement Ratio – A higher claim settlement ratio speaks well of the insurer and highlights reliability.
- Daycare Coverage – Look for policies that cover modern treatment that do not require 24-hour hospitalisation.
Who Should Buy Medical Insurance?
The simple answer is everyone. Medical emergencies can happen at any age. However, here are certain priority groups:
- Young Adults – Starting early leads to lower premiums. You can get higher coverage at an affordable price when you are healthy.
- Families – A family floater plan is one of the common health insurance plans for family that covers all family members under a single premium. It is ideal for couples with children.
- Senior Citizens – Older adults are more prone to illnesses. There is health insurance for senior citizens which offers higher coverage and includes age-related treatments.
Conclusion
Medical insurance is not just a backup plan but a smart financial decision. It protects your savings, gives access to quality healthcare, and brings you peace of mind during tough times.
With rising medical inflation in India, which stands at a rate of 13%, having a health insurance policy can make the difference between financial security and falling into a debt trap.
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