MS. Priya Deshmukh, Head Health Products, Operations & Services, ICICI Lombard Gen Insc.Co. ltd. 

Health insurance helps you save costs by covering expensive medical treatments and offering preventive care services to keep you healthy and avoid major expenses. It provides financial protection against unexpected health issues, ensuring you receive timely medical attention without breaking the bank

Our forefathers always said, “Health is Wealth” or “Jaan hai toh jahaan hai”. They emphasized on the importance of good health and encouraged taking timely precautions to secure one’s wellbeing. And rightly so, considering the dynamically evolving world that we are currently thriving in – health and financial stability are the pillars of a comfortable and peaceful life.

Rising healthcare costs in India – an overview

 The rapid profit driven corporatisation of hospitals in the last few years has led to a surge in health care costs in India. Recent reports have also stated that India has the highest rate of medical inflation across all its contemporaries in Asia- an alarming 14%.  To put things in perspective, without adequate medical insurance, a conventional middle-class family in the country can end up incurring lakhs of rupees in treatment and hospitalisation in a multi-speciality care facility in the country.

The growing medical inflation in India reinstates the need for health insurance as a solid instrument that helps you save a substantial corpus of money in times of emergencies.

Benefits of proactive health management and different aspects of health protection

 Modern health insurance encourages proactive health management. These plans not only cover illnesses but also preventive health check-ups, tests, vaccinations, and screenings, which can detect potential health issues early on. Early detection and treatment of health conditions can prevent them from developing into more severe and costly problems. By covering these preventive measures, health insurance thus helps individuals maintain better health and avoid expensive treatments in the future. Naturally, making health insurance a financial saving as well as risk mitigation tool.

Moreover, this is no longer limited to physical health conditions only. Modern medical cover goes above and beyond. It encompasses different aspects of health protection like mental health, wellness, dental/ oral care, vision health, nutritional health and other forms of health that focus on holistic wellbeing.  Many insurance plans offer wellness programs, telemedicine services, and discounts on gym memberships, promoting a healthier lifestyle. This proactive approach not only improves overall well-being but also reduces the likelihood of major medical expenses, thereby saving money in the long run.

Modern health insurance plans – cost benefits and savings

The evolution of health insurance in India took giant strides post 2019. Until 2019, health and general insurance companies were quite reluctant in covering treatments or procedures that were new or ‘out of the ordinary’. This changed after the Insurance Regulation and Development Authority issued significant amendments in 2019.

This introduced the era of modern health insurance plans. Policies, which were more inclusive and covered treatments that not only related to physical, tangible health but also mental or intangible health.

Savings through modern health insurance plans

Ever wondered how modern health insurance plans can also be a great tool for saving money? Here are some ways

1. Cashless treatment: One of the greatest boon of modern medical cover is the introduction of cashless payments. It enables policyholders to get medical treatments without having to pay any money simply by quoting their policy number. The hospital directly settles the bill with the insurance company thus reducing the financial burden during medical emergencies.

2. No claim bonus: To reward policyholders who do not make claims, many insurers offer a no-claim bonus. This can be in the form of a reduced premium or an increased sum insured for the following year, incentivizing healthy living and prudent use of health services.

3. Top up and super top up plans: Top-up and super top-up plans provide additional coverage once the basic sum insured is exhausted. These plans are cost-effective ways to enhance coverage, especially useful for covering major medical expenses without significantly increasing premium costs.

4. Wellness and preventive care: Insurers are increasingly focusing on wellness and preventive care. These programs often include free health check-ups, gym memberships, diet counselling, and smoking cessation programs. By encouraging a healthy lifestyle, these features help policyholders avoid serious health issues, ultimately leading to lower healthcare costs.

5. Customisable coverage: Modern health insurance plans offer a high degree of customization, allowing policyholders to tailor coverage based on their specific needs. Whether it’s adding riders for additional protection or choosing specific coverage options, this flexibility ensures that individuals get the most relevant and effective insurance coverage.

Conclusion

Maintaining good health and financial savings are deeply interconnected, and comprehensive health insurance plans play a crucial role in bridging this gap. By investing in a robust health insurance plan, individuals can ensure access to quality healthcare without the worry of financial ruin.