Health Insurance (popularly known as 'Medi-claim' Policy) offers protection from unexpected medical emergencies and costs. Health insurance therefore, can be a source of support as it takes care of the financial burden your family may have to go through. It will help you tackle such situations with ease by providing you with timely and adequate medical care.
However, it is estimated that only 17% of the total population in India is covered by Health Insurance.
At the same time surveys have shown that demand for Medicare in India is growing at over 25%.
Let's take cardiovascular ailments which are particularly common in India being, as it is, the heart disease capital of the world.
Treating a heart ailment, especially if it involves surgery, can be expensive.
The actual cost of the surgery depends on factors like severity of the heart condition, nature of surgery, type of hospitalization, surgeon's experience and expertise.
Today, cost of a heart surgery in India could vary in the region of Rs 1.5 lakhs to Rs 3 lakhs. Five years later it could be a lot more expensive.
The illustration below highlights how cost of heart surgery can be expected to rise over the years.
Rising Cost of Medical Emergencies
Cost of heart surgery and rise in costs are estimates and do not represent actual values
|Cost of heart surgery today
|Annual rise in medical cost
|Future value of heart surgery after 5 years
|Future value of heart surgery after 10 years
|Future value of heart surgery after 15 years
As is evident from the illustration after 5 years the Rs 2 lakh heart surgery will cost over Rs 3.22 lakhs. After 10 years it will be Rs 5.19 and Rs 8.35 lakhs after 15 years.
If the individual hasn't saved that much money, he would be forced to dip into his savings and investments or worse borrow money.
Thus, the best way of tackling medical emergencies is by investing in a good Health Insurance. It offers a lot of flexibility both in terms of coverage and disbursal. For instance, certain health plans cover as many as 30 critical illnesses and over 80 surgical procedures. Payment towards illness/surgery is disbursed regardless of actual medical expenses. The policy continues even after the benefit payment on selected illnesses.
With health plans, individuals are assured of a more secure future both health-wise and money-wise.