Can We Have Death Covered by Health Insurance?
Regrettably, no. The insured's death is not covered under health insurance plans in India. This means that, in the event of the insured's passing away, there will be no death benefit paid to the insured's family. In fact, if no other family members are protected, the health insurance policy will expire.
Do you know why? Plans for health insurance are made to take care of a person's medical requirements. It offers protection for any medical, hospitalisation, or surgical requirements a person may have. Depending on the selected plan, it will cover the insured's medical costs in the event of a medical emergency, pre-planned hospitalisation, OPD consultations, and diagnostic tests.
As a result, the insured receives no coverage benefit upon passing away under a health insurance policy. No death benefit will be given to the insured's family regardless of whether they have critical illness insurance, senior citizen insurance, family floater insurance, or individual health insurance.
Maybe understanding the difference between health insurance and life insurance in terms of death coverage is critical.
Understand the Difference Between Health Insurance and Life Insurance for Death Coverage
Health Insurance
Health insurance is an agreement between the health insurance company and insured wherein the former protects the latter financially in the event of a medical emergency. The insured pays a certain premium for health insurance.
When you own health insurance, you can either have your out-of-pocket medical expenses refunded or have the insurance company pay the medical costs straight on your behalf, depending on the type of health insurance claim you choose - cashless or reimbursement. A cashless claim, which you can file for admissions to the network hospitals of the insurer, requires no upfront payment up to the sum insured limit. Whereas reimbursement claims require paying the medical expenses and getting them reimbursed by the insurer upon discharge. Certain health insurance policies will also cover the cost of your prescription medications.
There are Three Types of Health Insurance
Individual Health Insurance
This policy is designed for a single person to protect and cover him/her against different illnesses, accidents, hospitalisation expenses, and other medical emergency situations that may occur over their lifetime.
Family Floater Health Insurance
Family floater health insurance policy is tailored to the whole family and is paid for with a single premium.
Senior Citizens Health Insurance
As the name implies, Senior citizens health insurance is a form of health insurance policy tailored for those aged over 60.
Life Insurance
Life insurance is similar to a personal vault that your family can access if you are not present to meet their needs. The life insurance for which the insured paid premiums is a contract between the insured and the life insurance company that, in the unfortunate scenario of the insured's death, bears fruit in the form of cash benefits to the beneficiary/nominee.
In most circumstances, death benefits are tax-free. As a result, the insured payment reaches the family with no significant deductions. Life insurance provides coverage for your whole life. Consider it as a future security plan for your family.
Life Insurance is Classified into Two Types
Whole life insurance frequently has fixed premium payments and offers a fixed sum promised to the beneficiary that is tax-free. Because of its consistency and low or no-risk strategy, this insurance is less expensive than universal life insurance.
Universal life insurance also gives a death benefit to the nominee, but it can also be viewed as an investment policy.
The distinction between Life Insurance and Health Insurance
| Life Insurance | Health Insurance |
| Life insurance provides complete insurance throughout your life and is not confined to a certain expense. It covers in the case of the insured's death, when the sum promised is paid to the beneficiary. | Health insurance is typically confined to simply catering to your medical/surgical/hospital needs, with only medical emergency coverage provided as and when needed. It does not extend beyond your medical expenses. |
| Depending on the type of life insurance chosen, the premiums are both set and variable. Some life insurance policies additionally include future investment value coverage for increased cash value. | The majority of the premiums are fixed. Health insurance covers medical expenses incurred during a medical emergency. The goal of these strategies is to protect, not to invest. In some circumstances, a no-claim incentive is available. |
| Life insurance is typically for a set period of time. It is usually cancelled after the period of the insurance expires. | The duration of this type of insurance is not fixed. Normally, the insured renews the policy annually in order to continue receiving the protection. |
| In some situations, by paying a small additional premium, the money you invest might be returned to you tax-free at maturity if you outlast the policy term. | There is no refund at the conclusion of the policy term. The money is only returned as reimbursement for expenditures incurred throughout the term due to illness or other medical expenses. |
Conclusion
Death can strike anyone at any time. Unfortunately, no health insurance policies cover death. You can, however, purchase a life insurance policy to protect your loved ones. Just keep in mind the aforementioned considerations before purchasing insurance to protect your family's future.
Read more- Which Should Be a Priority: Life Insurance or Health Insurance?
Cashless claims would go through by submitting your health insurance card, photo identity proof, pre-authorisation form. If the insured member dies, the health insurance company may want a death certificate to process your cashless claims. A death certificate is also required when filing a reimbursement claim for the deceased insured member.
Yes, a death certificate from the policyholder is required to file a life insurance claim.
As long as the death is reported and the payment is paid on time, a family floater plan typically maintains coverage for the remaining insured family members. To find out if this is the case with your plan, contact your insurer.
Depending on the terms and conditions of the plan, health insurance may continue until the policy expiration date. To continue coverage, the other insured individuals specified in the plan must renew their health insurance.
If your spouse was covered by your health insurance coverage when they were sick, you could be entitled to reimburse the medical bills incurred on her treatment. You might need to request a succession certificate from the court of law if you are not chosen as a nominee. Normally, the claim amount should be given to the deceased person's next of kin if this certificate is granted and produced.