Until a century ago, the medical field was still in its infant stage. People diagnosed with illnesses like cancers, heart ailments, and kidney diseases almost always lost their lives. But the 20th century brought with it medical advancements unlike the world had ever seen before. Today, there are vaccines and cures for almost all diseases. But these developments have also impacted medical costs, and getting treatment today can prove incredibly expensive. The only way to save yourself from losing your lifelong savings is to invest in health insurance. Let’s find out how a comprehensive health insurance policy can reduce your financial risks.
The Risks of Not Investing in a Health Insurance Plan
Not investing in a comprehensive medical insurance plan can prove to be detrimental to your financial health for many reasons:
- You’ll have to pay every last rupee of the medical expenses from your pocket.
- A life-threatening illness can exhaust your savings.
- Hospitals may not admit you for treatment if you can’t pay your bills.
- You may need to mortgage your assets to pay off high medical bills.
- You may fall into a debt-trap, paying off loans obtained to fund expensive treatment.
- You may become ineligible for coverage following a serious illness, even if you’ve recovered.
- The stress of uninsured expenses can pull you into a vicious cycle of health complications and treatment costs.
Investing in Health Insurance to Reduce Your Financial Risks – The Tips You Need to Know
Your comprehensive health insurance plan is that friend you can turn to when you need medical care. It gives you the confidence to seek the necessary treatment without breaking the bank or depleting your savings. By employing the below-mentioned strategies, you can mitigate your financial risks associated with medical costs.
Buy Health Insurance Coverage at a Young Age
Health insurance is not an investment you must postpone for tomorrow. You must buy it from the moment you can afford it; typically as soon as you begin earning. Buying insurance when you are young enables you to enjoy affordable coverage since insurers typically charge a lower rate from young buyers. Plus, you can easily ride out the waiting period.
Ensure Your Entire Immediate Family Is Covered
Diseases and illnesses do not discriminate. They can affect anyone, at any time. If you do not wish to invest in individual health plans, you can always invest in a family floater policy. This way, you can cover all your loved ones under a single plan. The sum insured under such policies can cover all insured members and pay for medical costs if something happens to them.
Invest in Senior Citizen Health Insurance to Address Age-Related Concerns
Old age is when you are most likely to fall ill. Your chances of filing claims also multiply as you grow older. With senior citizen plans, you can enjoy the benefits of financial risk management in health insurance since these plans cover you against various age-related health conditions. You can thus seek the necessary treatment without breaking your savings or dipping into your retirement corpus.
Combat Inflation by Investing in a Policy With a High Sum Insured
In medical insurance, the sum insured is the maximum amount the insurer pays when you file a claim. The higher the sum insured, the better the coverage benefits. Considering the ever-rising inflation and associated medical costs, you must look to the future and choose a policy with a high sum insured. A policy with a sum insured of ₹50 lakhs and above can help combat the inflating medical costs.
Did you know? Absence of health insurance coverage may make you ineligible for treatment in certain hospitals. You may have to deposit a substantial amount to qualify for treatment.
Choose a Top-Up Plan for Added Coverage
If you can only afford a base health insurance policy with a low sum insured, don’t lose hope. You can always choose a top-up plan. This allows you to get added coverage for a fraction of the cost. The only condition is that you can encash the top-up plan after exhausting the sum insured on your basic health plan. You can purchase top-up plans with most types of health insurance policies.
Get a Comprehensive Health Insurance Plan Offering All-Around Coverage
If financial risk management in health insurance is your primary concern, you must choose a comprehensive health insurance policy that covers most costs. A good policy covers all kinds of expenses — from hospitalisation costs and surgeon’s fees to outpatient treatments, diagnostic tests, follow-up consultations after surgery, alternative treatments, and more.
Enhance Coverage by Adding the Necessary Riders
Your medical coverage needs keep changing with age. There may come a time when you want to get married and expand your family. You may also become the primary breadwinner while your spouse focuses on child-rearing. To keep up with these changes, you can add riders like maternity coverage and personal accident insurance to your existing policy.
Plan for Expenses Related to Critical Illnesses
The worst kind of illness is one that engulfs your body and takes over it — also known as a critical illness. Such illnesses can be harsh on your body and your pocket. One way to prepare yourself against the costs associated with critical illness is to invest in standalone critical illness plans or comprehensive health plans with critical illness cover.
Did you know? Inflation may make today’s high sum insured seem meagre tomorrow. To combat inflation, you should choose policies with sums insured of ₹50 lakh and above.
Choose Insurers Offering Cashless Claim Benefits
While you can arrange funds for a planned treatment, the same may not always be possible during emergencies. It is vital to ensure you buy a policy with cashless claim benefits. With this facility, you can start treatment immediately without making any cash payment upfront. Just remember: seek treatment at a hospital in your insurer’s network.
Don’t Just Depend on Group Health Insurance
Your employer may provide health insurance as a perk, but such policies generally come with lower sums insured. You can only enjoy the benefit as long as you are employed. The moment your employment ceases, so does your insurance cover. So, you must have a backup — an individual or family health insurance plan.
Don’t Lose Your Savings or Your Sleep – Buy Your Manipal Cigna Health Insurance Policy Today
There is no telling when a medical emergency can strike. When it does, it is always best to be prepared with a comprehensive medical insurance policy. If you are looking for affordable health coverage with excellent health and wellness benefits, you need not look further than Manipal Cigna Health Insurance. We offer comprehensive health plans designed to cover all kinds of medical expenses — from diagnosis to post-hospitalisation costs. Plus, our simple claim settlement process makes it easy for you to file claims and submit documents online.
Don’t cut corners while seeking medical treatment. Invest in Manipal Cigna Health Insurance today.
FAQs
Why is health insurance considered a financial risk reducer?
Health insurance takes a big part of the financial pressure off you. Instead of worrying about how you’ll pay for an unexpected surgery, long hospital stay or a sudden emergency, you pay a fixed yearly premium and the insurer handles the covered bills. It protects your savings, keeps you from taking loans during medical crises and gives you a clear buffer against unpredictable expenses.
What happens if I delay buying a health-insurance policy?
Waiting too long usually means you’ll have to pay more later. Premiums increase with age, and any health issue you develop in the meantime may come with long waiting periods or even exclusions. In some cases, if the illness is serious, insurers may refuse to offer cover at all. Buying early simply keeps the door open and the cost lower.
Is having only group health insurance enough?
Not really. Employer-provided policies are helpful, but the coverage is often limited and disappears the moment you switch jobs or take a break from work. If a major illness strikes during that gap, you may not have enough financial protection. A personal plan ensures you’re covered at all times, no matter where you work.
How can top-up plans help increase coverage affordably?
Top-up plans sit above your basic health cover and add extra protection without costing too much. They activate only after your main policy’s sum insured is used up, which makes them an affordable way to expand your total coverage. For families or individuals who want higher protection without doubling their premium, top-ups are a smart option.
Why should young adults invest in health insurance early?
Buying young locks in lower premiums and higher coverage because insurers see you as low-risk. You’re also less likely to have pre-existing conditions, which means fewer medical checks, fewer exclusions and shorter waiting periods. By the time you actually need the cover, most waiting periods are already over, giving you full protection when it matters.
