The terms "health" and "wellness" have become very popular in India. People are more likely to pursue a healthy lifestyle as there is a greater understanding of holistic health. However, your defence against medical disorders is insufficient without an appropriate health insurance plan.
We present you with this healthcare plan tutorial since scepticism about insurance is mainly caused by misinformation. We'll discuss fixed benefit health insurance and all its nuances here.
The Need for Fixed Benefit Health Insurance
It is crucial to remember that although a fixed benefit health insurance plan may cover a particular covered event, it does not cover things like pre-and post-hospitalisation costs, as well as daycare costs.
Hospitalisation is becoming more common due to the rise of disorders linked to modern lifestyles. Complicating matters further, the cost of healthcare is increasing much more quickly than the overall inflation rate.
Because of this, you should always ensure that you have a primary indemnity policy. If necessary, you can then choose to add a fixed benefit plan. To understand it simply, a fixed benefit plan is for people who want to improve their current health insurance.
How Does This Plan Work?
A fixed benefit plan compensates a lump sum predetermined payment on a pre-planned situation that has been insured. It functions somewhat as an additional source of income. A hospital cash policy, a personal accident insurance policy, or a standalone critical illness insurance policy could all be used as examples.
For instance, if a person covered by the plan develops any critical illnesses stated in the plan, a critical illness policy will compensate the policyholder the sum insured. The plan will then come to an end. Therefore, you should choose a plan that at least partially covers the most well-known critical illnesses to guarantee that it will cover a wide range of possible conditions. In a fixed benefit plan, the insurance company's reimbursement has no relationship to the actual costs incurred.
A fixed benefit plan can help policyholders who are unable to claim health insurance or expenses that are not linked to hospitalisation. Additionally, it makes up for lost income for patients due to hospitalisation. This is especially advantageous for self-employed individuals or those not provided this benefit by their employer.
Why Buying the Fixed Benefit Health Insurance Plan May be Beneficial?
- Medical emergencies increase the length of a patient's hospital stay and demand more money. This is mainly true for those with a life-threatening ailment, which is on the rise lately.
- Critical illness cases have increased significantly in India over time. Furthermore, according to 2020 research by the Indian Council of Medical Research (ICMR), mortality from critical illnesses will likely continue to rise further. Therefore, we must take the needed steps to protect our loved ones from such illnesses. Furthermore, this is where fixed benefit health plans could be particularly useful.
- If the insured person develops any critical illnesses listed in the critical illness policy, the health insurance plan will pay the policyholder the sum assured. Let's use an illustration to explain this further-
- Let's assume Ms Sharma enrolled in a critical illness health insurance plan with INR 10 lakhs. She was identified as having one of the severe illnesses covered by the policy. Therefore, regardless of the costs she may incur, she will receive a lump sum payment of INR 10 lakh as a claim settlement. The policy expires when she receives the total amount insured under the plan.
- Additionally, you should ensure that your fixed benefit health insurance plan adequately covers a variety of likely ailments when choosing one. Therefore, we advise you to select a plan that at least partially covers the most prevalent critical illnesses.
- A well-planned financial structure is also required due to the growing expense of medical care. Here, you might consider a fixed-benefit plan as an addition to your current health insurance.
- It also covers non-medical costs that can develop due to a decrease in income or a loss of livelihood during hospitalisation and recovery. Additionally, this plan is advantageous for you if you are predisposed to specific medical disorders due to genetics, lifestyle, etc.
Some Points About Fixed Benefit Health Insurance to Remember
Usefulness
For selected critical illnesses or medical conditions, this plan reimburses the amount insured.
Prerequisite
According to the policy's requirements, a policyholder must be diagnosed with a particular medical condition. To get the covered amount, one must submit a diagnosis report signed by a licenced physician.
Features of the Policy
This policy offers a lump sum payout that increases cash flow. This payment especially comes in handy in cases of serious illnesses whose treatment necessitates significant financial resources. This plan compensates you for any income you lose while receiving treatment and recovering. It enables the insured to pay for family bills and nursing costs and to support their children's education. The paperwork for a claim is straightforward. Also, fixed benefit health insurance does not have sub-limits to provide coverage for a specific medical condition. These plans come with a variety of policies that address various medical needs.
Limitation
- Only some diseases or conditions are eligible under a fixed benefit health plan.
- Inadequate coverage—the plan will pay a fixed payment only in the case of the surgery requirement.
- The insurance company's reimbursement isn't comparable to the actual costs incurred.
- Not all fixed benefit plans offer comprehensive coverage.
Conclusion
Your family's financial protection against the cost of medical care or emergencies should be your primary concern when purchasing health insurance. Your objective should be to minimise the financial burden while protecting your family with a strong health insurance strategy. Choose a conventional health insurance plan or add the fixed benefit plan as an add-on for comprehensive coverage and greater reimbursement for treating serious illnesses. Alternatively, you can purchase them separately based on your needs.
