People in India are becoming more susceptible to be diagnosed with serious medical conditions like cancer, heart-related problems, etc. The cost of treatment of these types of conditions is also expensive and hence, in order to counter it, it has become extremely important that an individual purchases a health insurance policy which also covers major critical illnesses.
However, the treatment of major critical illnesses can go for a very long time and hence, at times the coverage chosen by you may not be enough. Thus, in order to ensure that you are always prepared to take care of rising medical costs and not rely simply on your health insurance policy, there are certain financial decisions that can help you prepare better to deal with critical illnesses. We will have a look at how you can prepare your finances in a better manner to manage the costs related to the treatment of critical illnesses.
Choose a proper health cover: One of the most basic factors that you need to keep in mind while purchasing a health insurance policy is to ensure that the cover amount chosen by you is enough to take care of your medical expenses. The idea behind the purchasing of a health insurance policy is to make sure that you do not have to touch your hard-earned savings while taking care of the medical expenses. Purchasing a health insurance policy allows you to gain tax benefits as well. You must choose a cover amount which covers most of the medical expenses.
Purchase a mix of regular health and critical illness policies: Do not only purchase a regular health insurance policy and be done with it. Instead, you must purchase a top-up plan or a critical illness rider plan. Your critical illness rider is supposed to complement your regular health insurance policy and is extremely helpful in case you are diagnosed with a critical illness. For example, you can purchase a benefit option, where you will receive 1% of your cover amount for a period of five years once you have submitted a claim for a major stage of cancer. There are critical illness policies which pay out a lump-sum amount when you are diagnosed with a critical illness and allow you to save your hard-earned money.
Read the fine print of your policy document: You must read the fine print of your policy document before signing it. Check for the illnesses before purchasing the policy document. Your whole health insurance policy will be rendered useless if you find out later that the plan does not cover an illness with which you may possibly get diagnosed with.
Waiting period and survival period: Check the waiting period and the survival period before purchasing a health insurance policy. The waiting period is the time period during which the insurance company will not provide you coverage. The survival period is the time period during which you will have to survive if you have been diagnosed with a medical condition, post the completion of it, the insurance company will provide coverage. A plan with a longer waiting period and survival period can be detrimental to your finances. You will have to resort to paying from your own pocket if you require immediate treatment with the waiting period and survival period still being active.
Do invest in other avenues: You can invest in other investment avenues keeping in mind the cost of your medical treatment. You can invest in funds with long-term options such as provident fund, public provident fund, the National Pension System, endowment policies, ULIPs, etc. You will have to invest in options keeping in mind not only your long-term goals but also your financial capabilities and appetite for risks. These instruments allow you to withdraw a certain sum of money which can help you clear your medical expenses.
Hence, these are some of the factors that you can keep in mind which will help you finance the cost of your medical treatment in a proper manner. You must plan in a proper manner which starts from choosing a proper health cover to choosing a plan with a shorter waiting period and survival period. You must ensure that you prepare your finances in a manner that allows you to take care of your medical costs whenever the need arises.