Rima and Liana, two friends, sat in a cosy cafe sipping on their masala chai.
Rima was always on the lookout for opportunities. Liana, on the other hand, preferred planning, and security. As the conversation meandered through their latest escapades and work endeavours, it took an unexpected turn towards health insurance.
Rima, with a curious expression, Liana asked, what is health insurance? Why people keep talking regarding it and why must I bother?
Liana said, “Health policy is like a net for your well-being. Just consider this: you are eyeing one of your adventures, and by fluke, you meet an accident. Health policy comes to the rescue by covering your healthcare expenditures, so you do not have to exhaust your pockets on your health.”
Rima’s eyes widened with understanding. “So, it’s like a financial cushion for unexpected medical costs?”
“Exactly,” replied Liana. “But do you know, there is a common myth. People often utilise the terms “health insurance” and Mediclaim” interchangeably. They are not the same.”
Curiosity painted Rima’s face as Liana dove into an enlightening explanation.
Difference between mediclaim and health insurance
Preventive care
Health insurance often takes a proactive approach by including preventive care benefits in its coverage. This can entail coverage for vaccinations, routine health check-ups, and participation in wellness programs. By encouraging policyholders to focus on preventive measures, health insurance aims to foster a culture of wellness, promoting early detection and management of health issues.
Coverage scope
Mediclaim policies are designed to cater primarily to hospitalisation-related expenses, encompassing costs like room charges, surgeries, and medical treatments incurred during a hospital stay. On the other hand, health insurance offers a more extensive coverage scope. It not only addresses hospitalisation but also extends to cover pre-hospitalisation expenses like diagnostic tests and consultations, as well as post-hospitalisation costs such as rehabilitation and follow-up consultations. This broader facet ensures a comprehensive net for safety for the policyholder.
Additional riders
One of the unique features of health insurance is the option to enhance coverage through additional riders. These riders allow policyholders to customise their policies to suit specific needs. Whether it’s adding coverage for critical illnesses, accidental injuries, or other specific risks, the inclusion of riders enhances the overall scope and flexibility of the insurance policy.
Family coverage
While Mediclaim policies are generally customised for individual coverage, health insurance policy uses a family-centric approach. This enables policyholders to extend cover to the family, allowing the well-being and health of the whole family under the same policy. This family cover feature offers a comprehensive solution for managing the health-linked risks witnessed by the household.
Policy duration
Medical insurance typically follows a yearly renewal cycle, requiring policyholders to renew their coverage per year. On the contrary, health policy provides flexibility in insurance duration. Policyholders can go for longer loan tenures such as two or more years, offering convenience and continuity while lowering the stress of constant renewals.
Daycare procedures
Health insurance recognises the evolving landscape of medical treatments and extends coverage beyond traditional hospitalisation. It includes coverage for daycare procedures—medical treatments that don’t require overnight stays. This can involve minor surgeries, dialysis sessions, and chemotherapy treatments conducted in a day setting, providing flexibility and convenience.
Critical illness cover
Health insurance policy goes beyond the traditional cover offered by medical policies. It often involves cover for critical diseases like health diseases, cancer, and organ transplants. This added cover provides a lump sum amount to the holder, allowing them to cope with distinct financial challenges linked with severe medical conditions.
Maternity coverage
Identifying the significance of maternity care, medical policies might involve coverage for expenditures linked with childbirth. This involves hospitalisation expenses, post- and pre-natal care, and delivery expenditures. Maternity cover ensures holistic support for family members during the considerable life event of welcoming a new family member.
Renewal age
Mediclaim policies may come with limitations on renewal age, specifying the maximum age until which the policy can be renewed. In contrast, health insurance policies often provide the flexibility of renewal throughout the policyholder’s life. This feature ensures that individuals can maintain continuous coverage, even as they age and potentially face increased health risks.
Premium variation
Health insurance adopts a dynamic approach to premium calculation, taking into account various individual factors. The premium may vary based on the policyholder’s age, lifestyle choices (such as smoking habits), and medical history. This personalised approach ensures that the premium reflects the specific risk profile of the individual, contributing to a fair and tailored insurance experience.
With clarity, Rima realised the importance of health insurance. Liana continued, “Now, let me tell you why having health insurance matters so much.”
Why Avail Health Insurance? How health insurance works?
Timely medical attention
Facilitates prompt medical care without worrying about costs.
Financial security
Protects you from exorbitant medical expenses, ensuring financial stability.
Preventive healthcare
Encourages regular health check-ups, preventing potential health issues.
Critical illness support
Offers a safety net for critical illnesses, easing the burden on the policyholder.
Family well-being
Extends coverage to family members, prioritising their health too.
Flexibility with providers
Allows flexibility in choosing healthcare providers without compromising on coverage.
Peace of mind
Provides mental peace, knowing that health-related financial concerns are taken care of.
Lifelong renewal
Ensures continuous coverage throughout life with options for policy renewal.
Tax benefits
Eligible for tax deductions under Section 80D of the Income Tax Act.
Maternity coverage
Supports maternity expenses, making the journey to parenthood smoother.
As Rima absorbed the information, she realised the impact health insurance could have on her life. Liana concluded, “Think of it as an investment in your well-being. It is not just about today; it’s about securing your future.”
So, Rima and Liana had uncovered a crucial aspect of adulting—prioritising health. They left the cafe with knowledge, ready to make informed decisions about their well-being.
In a world filled with uncertainties, health insurance emerged as security, ensuring that Rima, Liana, and countless others could go through life’s adventures without compromising on health or financial stability.
