Falling sick can happen to anyone at any time. And in India, healthcare costs are rising steadily every year. This makes having a mediclaim or health insurance policy essential to protect yourself and your family from massive unexpected medical bills.

A mediclaim policy works by providing financial coverage for medical expenses in case you or your family members fall ill or get injured. It covers hospitalisation costs, treatments, diagnostic tests, medicines, etc. In this blog, we'll discuss the key benefits of having a mediclaim policy in India and the important factors you must consider when buying one.

Benefits of Mediclaim Policy

1. Financial Security During Medical Emergencies

The primary benefit of a mediclaim policy is that it provides financial security when you or your family members need medical care. With healthcare inflation at 15-20% per year, hospital bills can escalate rapidly, even for minor procedures or tests.

A good mediclaim policy covers most medical eventualities, including:

• Hospital room rent and boarding
• ICU charges
• Surgeon's fee
• Medicines
• Diagnostic tests
• Post-hospitalisation care

2. Cashless Hospitalisation

Most mediclaim policies today offer cashless hospitalisation where you don't need to make any upfront payments to the hospital. The insurance company directly pays the hospital once they approve the claim.

This facility is extremely convenient, especially during medical crises when you want to focus solely on recovery rather than stress about making payments.

3. Tax Benefits

The premiums you pay towards mediclaim policies are eligible for income tax deductions under Section 80D. This allows you to save money on taxes while also securing your health. So, a family of four can save huge taxes if they buy health insurance for themselves and their parents.

4. Options to Increase Coverage

Many insurance companies offer cumulative bonuses if you have a claim-free year. This means they will increase your sum insured by a certain percentage yearly.

For example, if you have a ₹5 lakh policy and you don't make any claims in Year 1, the insurer may increase your coverage to ₹5.25 lakhs in Year 2. This encourages you to maintain good health while also improving your coverage.

5. Wide Range of Add-Ons

There are numerous add-ons you can choose for your mediclaim policy based on your specific needs:

• Critical Illness Cover: For dreaded illnesses like cancer, stroke, renal failure, etc., which require prolonged treatment
• Emergency Ambulance: Transporting critically ill patients via air ambulance
• Restoration Benefit: Restore your base sum insured if it gets exhausted during a claim

Choosing relevant add-ons allows you to customise your policy for enhanced protection.

Key Factors to Consider When Buying Mediclaim

While buying a policy, keep the following parameters in mind:

1. Adequate Sum Insured

Calculate your family's yearly medical expenses and opt for an adequate sum insured to ₹5-10 lakhs or more—based on your lifestyle and needs. Also, factor in inflation to determine an optimal sum insured.

2. Cashless Hospitals

Look for an insurer that has tie-ups with top hospitals in your location so that you can utilise cashless services whenever needed.

3. Claim Settlement Ratio

Check insurers' claim settlement ratios when buying a policy. Higher ratios are better, as they indicate that policyholders are able to make successful claims.

4. Waiting Periods

There are usually waiting periods of 1-3 years for certain illnesses. Check policy documents carefully so you are aware of exclusions. If you want to get a policy with zero waiting period, choose ACKO.

5. Premium Payment Mode

Opt for longer-duration premium payment modes (2 years, 3 years), as you get discounts compared to the yearly mode. This keeps your budget intact.

6. Renewability

Buy policies with lifetime renewability so you continue to stay protected in your later years.

Conclusion

Rising healthcare costs make mediclaim policies invaluable for financial protection against medical emergencies. When buying one, analyse your needs and compare policies on parameters like claim settlement and renewability. Check out ACKO Health Insurance Plans for comprehensive coverage at affordable premiums.