Atul was a worried man. His wife had just been admitted to the hospital for severe stomach pain. The doctors had advised an immediate operation, as otherwise her condition might worsen.
Apart from his wife’s health, what was also giving Atul the shivers was that his emergency fund may not be enough to fund the operation costs, leave aside the cost that he would have to incur for his wife’s stay in the hospital after the operation.
What if you were Atul?
God forbid you get into a situation like Atul. What will you do?Now, why think of that situation? Simply buy a health insurance policy to secure your and your family’s healthcare needs in case a situation arises in the future?Before we get into the benefits of health insurance, let us briefly look at the two categories of health insurance products:
1. Mediclaim Policies: Also known as indemnity health plans, a mediclaim policy reimburses the expenses incurred on hospitalisation as per the actual hospital bill amounts. If you are covered under such a policy, you can get claim for your hospitalisation expenses depending on your claim details, terms/conditions of the policy and coverage amount. This type of Health plans are sold by general insurance companies. Although they may be marginally cheaper than other health insurance products, payout is not guaranteed.
2. Fixed benefit health insurance plans: Unlike indemnity plans, these plans provide guaranteed fixed benefit payouts irrespective of the actual hospital bill amount. These plans focus on helping the insured meet the cost of two major heads of medical expenses – hospital room charges and cost of surgery. The plan has a fixed payout for each day of hospitalisation and a fixed payout for different categories of surgeries. These are called fixed payouts because the insured, in the case of a valid claim, will get this amount from the insurance company, irrespective of the actual expense incurred.