With a growing increase in lifestyle-related diseases, the risk of having hospitalization is increasing.To make matters more complicated, the cost of healthcare is rising even faster than the general level of inflation.
As a result, taking care of a medical emergency or being afflicted with a serious aliment can not only take a toll on one’s general well-being but also their financial stability. This is why it is important to not only have a health insurance plan but additional back-up as well, in this case, in the form of a fixed benefit plan.
It is important to remember that while a fixed benefit health insurance plan covers a specific insured event, it does not cover aspects like pre-hospitalization and post-hospitalization expenses, and day-care expenditures.
This is why you should always ensure that you have a basic indemnity policy in place, over and above which, you can opt for a fixed benefit plan. To put it simply, a fixed benefit plan is for those individuals who want to enhance their existing health cover.
A fixed benefit plan pays a certain stipulated sum on a pre-defined event that has been insured. In a sense, it works like an income supplement. It could be in the form of a hospital cash policy, personal accident cover or a standalone critical illness cover.
For example, a critical illness policy will pay the policyholder the sum assured if the individuals covered under the plan contract any of the critical illnesses listed in the plan. Thereafter, the plan will terminate. To ensure that the plan chosen covers a range of likely diseases, you should pick a plan that covers at least some of the commonly known critical illnesses. The payout from the insurance provider has no relation to the actual expenses incurred, in a fixed benefit plan.
Often, policyholders are not able to claim medical insurance and expenses that are not related to hospitalization, which is where a fixed benefit plan comes in handy. It also compensates individuals for income lost due to hospitalization. This is particularly beneficial for self-employed professionals or those who do not get this benefit from their employer.
A regular health plan provides a wider coverage, as a fixed benefit plan only covers specific illnesses. Thus, if you are to be hospitalized for a minor surgery, or because of accidental injuries, your health insurance plan will come into play.
Also, when it comes to a fixed benefit plan, once the claim is paid, the plan ceases to exist. However in the case of a regular health insurance policy, you can claim the amount up to the sum insured within the policy year and also renew the policy for life if you like.
So for example, if the sum insured is INR 3,00,000 and the bill amount is INR 70,000, the balance INR 2,30,000 will remain unutilized but the policyholder will be able to use this amount to claim any other hospitalization costs that might crop up during the coverage period. Additionally, fixed benefit plans are more expensive than a regular indemnity-based policy.
Your health insurance plan, which can be in the form of a family floater or mediclaim policy, should thus be the main cornerstone of your health insurance investments. Over and above that, you can consider opting for additional security by purchasing a critical illness plan to protect yourself against lifestyle-based diseases and a hospital cash policy to meet incidental costs while you are hospitalized.
Every year, Insurance Regulatory and Development Authority of India (IRDA) announces a list of health insurance companies. There are few important features that help it to rate the insurance companies, such as their perf...read more
Maternity or pregnancy is an important phase of life, and one needs to prepare in advance to embrace parenthood. Though rearing a child is an expensive affair and may require good financial backup to meet the requirement...read more
A quiet revolution has swept through India’s health care sector in the past five years- best evidenced in the fact that now nearly 27% of the nation’s population is insured. The Indian healthcare sector is projected ...read more
From the air we breathe to the food we eat, everything is intentionally or unintentionally subjected to adulteration. Due to this, the disease rate in India is rising drastically. Naturally, more and more people are visi...read more
There has always been a doubt in customers mind about whether the private company will keep its side of the bargain i.e. it will settle the claim or not. A customer spends premium annually which will cover his medical ex...read more