As a critical illness policy come at higher cost and covers specific ailments. The type of policy to buy should be determined by your family’s needs. The number of family members and their age is crucial to identifying a policy. With India being one of the cheapest health insurance markets, it’s time to prioritise health insurance.
A health insurance floater policy of Rs 7-10 lakh is quite sufficient in most parts of the country. However, a regular indemnity policy may not be of much use if the policyholder is diagnosed with a serious ailment. For such cases, a critical illness plan is more useful. A critical illness policy come at higher cost and covers specific ailments.
In India, a substantial proportion of the healthcare is provided by the private sector, however, the public insurers like New India Assurance Co, Oriental Insurance Co, National Insurance Co and United Insurance India also retain almost half of the market share in health insurance. Dominant private insurers include Apollo Munich Health Insurance Company Limited, Star Health.
Critical illness policy
Fortunately, India is one of the cheapest health insurance markets across the globe offering comprehensive health insurance policies at affordable prices. Moreover, insurers are now even moving beyond mere hospitalisation coverage to more comprehensive policies that apart from covering out-of-the-pocket expenses even incentivize wellness and promote preventive care.
Apparently, India has one of the world’s highest rates of out-of-pocket spending in health care. The basic cover will now be available through regular health plans as the focus of insurers is developing towards solutions for meeting out of pocket expenses like OPD, pharmacy, diagnostics etc. Apparently, out-of-pocket expenses currently account for 65% of the overall healthcare spends.
Expenses on healthcare
Considering the given facts, we all must make sure that healthcare remains the priority and, especially, for a country like India that has a healthcare system ranked at 112 out of 190 countries. But in our country, the expenses on healthcare can easily exceed; the average income and savings of a middle-class family. Most of the Indians mainly depend on household income; and savings for health care expenses or if need be, borrow money from friends and relatives to pay hospital bills.
The report findings further emphasised on the fact that of all the people covered under a health insurance plan; over 10% are covering by private insurance companies, 26% are covering under the government run health insurance program; Rashtriya Swasthya Bima Yojana and other popular government schemes; while a little over 10% are covering either under ESIS or Central Government Health Scheme (CGHS).