In everyone's life, there is always a possibility of getting sick or of a medical emergency. You or your family member might be at the mercy of a chronic condition that may require long-term care. The medical treatment in India is very high, and medical bills can put your off-track in your financial journey.
Fortunately, you can have health insurance. It ensures your family is protected from the financial burden of the treatment. Health insurance acts as a cover for medical expenses so you and your loved ones can continue to enjoy life.
Cashless Treatment - Definition
When someone in the family is hospitalized, you want to be with them. You don't want to wait in the ATM queue to withdraw money to get them admitted. If the amount required is high, you may be calling your friend and relatives for cash for hospitalization.
No one likes to be in this situation, especially during a medical emergency. Cashless treatment is the solution to the above problem. When you opt for cashless treatment, the insurance company settles the bills with the hospital, and you don't have to pay the amount to the hospital to admit the patient or for treatment.
The complete treatment may not be cashless as there is a limit to the maximum sum assured under a comprehensive health insurance policy.
Can you Avail Cashless Treatment Anywhere?
The cashless treatment is available only at the selected hospitals. Insurance companies tie-up with different hospitals after analyzing their medical services. You can only avail cashless treatment options with hospitals your insurance company has tie-up with (known as network hospitals).
Cashless treatment can be done in the following two ways:
1. Planned Hospitalization:If you need to get yourself or a family member treated and will require hospitalization, you should determine the list of network hospitals in your city. You can check the policy document or check with your insurance company to know the list.
Get the pre-authorization form from the insurance desk at the hospital and fill in the required details. Once filled, submit the form to the insurance desk at the hospital for review. After the request gets approved, the insurer sanctions the amount for treatment to the hospital.
2. Emergency Hospitalization:In a medical emergency, you should carry your health insurance card to the network hospital for cashless treatment. It should have your policy number and coverage type. To expedite the process, fill in the authorization form given by the hospital.
Even if your cashless treatment request is approved, it may not cover all the expenses. Expenses like hospital admission fees, service charges, ambulance charges are generally not included in the coverage.
Does your Health Insurance Work Out of India?
Most health insurance plans in India are designed to cover your medical expenses India. It means that if you avail of healthcare facilities like hospitalization, OPD treatment, etc while travelling abroad, your health insurance policy will not cover it. In general, your health insurance does not work outside of India.
There are specific health insurance plans that provide worldwide coverage to you. If your health policy comes with global coverage, your insurance company will pay for your medical bills incurred while travelling abroad (given all policy terms and conditions are met).
What to do when Cashless Treatment is not Available?
The cashless treatment makes the already difficult journey easy for you. However, if for any reason the network hospital is not providing you cashless treatment, there are two options will you:
- You can go to another network hospital to get the cashless facility. It will ensure you don't have to pay from your pocket.
- In an emergency, the above option may not be possible. In such cases, you can settle the hospital bills and claim the amount later from the insurance company.
Other Insurance Plans to Consider
You need to protect your loved ones 360 degrees. Hence, it is essential to have other insurance plans for all-around protection. If you are the only breadwinner in your family, the family will go through tough times if you are diagnosed with critical illnesses. Hence, opt for an insurance plan that offers you coverage against critical illness. Canara HSBC Life Insurance Health First Plan gives you the option to cover yourself against cancer conditions, heart ailments, and other major critical illnesses.
Under cancer and heart cover, if you are diagnosed with any of these conditions, all your future premiums are waived off. Also, you get additional monthly income to take care of your family (you need to opt for this).
Health and term insurance plans are one of the first investments anyone should have as they are the long-term shields to protect you financially. Also, you should have the right amount of sum assured for the insurance plan.
For term insurance, the sum assured should be 10 to 15 times your annual salary. So, if your annual salary is Rs 8 lakh, you should opt for a plan with coverage between Rs 80 lakhs and Rs 1.2 crore.
For health insurance, the rule of thumb is to have coverage of about 50% of your annual income. If your yearly income is Rs 12 lakh, your health insurance policy should give you coverage of at least Rs 6 lakh.
With the rising cost of treatment and medicines and uncertainties in life, insurance is not an option. You should buy the right insurance plan now and secure the life of your loved ones.Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.