One can witness the growth in medical expenses in the last few decades for medical facilities. Most people ignore health insurance plans, but they form the preliminary step in your financial planning.
A health insurance policy gives you support for your general well-being, along with an added financial assistance to you and your family in times of need. Such steep costs of healthcare can wipe out all your savings and even leave you in debt. Getting a mediclaim which can be like critical illness insurance or cancer insurance is the need of the hour.
Prima facie as simple as it appears, there is a confusion among the vast majority in selecting a fixed benefit health insurance or indemnity health insurance plans. Both plans differ significantly in premium amounts, the sum assured, medical treatments covered, and much more.
Fixed Benefit Health Insurance
Fixed benefit health insurance does not indemnify the insured for the medical expenses so incurred. Instead, it just pays a fixed amount [the amount of sum insured] when the ailment strikes. Such diseases are predetermined at the time of availing the health insurance plans. Fixed benefit health insurance help in bridging the gap between your regular insurance plan and those ailments not covered by it. You can opt for a fixed benefit health insurance along with regular health insurance to achieve blanket protection for all your medical needs.
Availing critical illness insurance like cancer insurance or heart insurance for pre-existing medical conditions offers all-round protection along with an added peace of mind. It removes the sub-limit that most policies have generally mentioned in the fine print, covering non-medical expenses like travel and nutritional requirements along with loss of livelihood during treatment and recovery stage. You surely have important things to worry about when your loved ones are undergoing medical treatment.
Indemnity Health Insurance
Indemnity health insurance or commonly referred to as ‘fee-for-service’ is a traditional form of health insurance. The insurance company pays for the medical expenses incurred subject to specific terms and conditions varying among different policies. Costs incurred are reimbursed depending on the limits specified in terms of your policy. You can select the medical professional of your choice along with the various treatment facilities available as per the health insurance policy.
It is imperative to know about deductibles and co-payment clause that may be attached tour indemnity plan. A deductible is where the insured pays a pre-decided amount at the time of claim. In contrast, under co-payment, a certain percentage of hospitalization expenses are borne by the insured. Indemnity plans are best suited for those who like to enjoy the freedom associated with selecting the medical facilities and other services.
Availing a comprehensive mediclaim cover while maintaining a balance between both types of insurance policies is the base logic behind health insurance. Make the best choice of health insurance plans that suit your needs as both types have their unique advantages. Choose wisely!