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Health Insurance or Health Fund?

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16 Sep, 2021 by  Rahul singh

This is a long debated question and I have not found a satisfactory answer. Should I buy a 5 lac SI Family Floater or create a 5 lac FD and keep adding some amount to it monthly? A mediclaim comes with many T&C and limitations which leads to eventually paying some amount from pocket let alone trauma of rejections and delays while in a FD all that is required is to withdraw, no questions asked! Also if health insurance is the answer, is it better to take a arogya sanjeevani and put remainder premium in fixed instrument.

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Health Insurance

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16 Sep, 2021
harivansh agrawal

beshak has written a fantastic article on that do check that

https://www.beshak.org/insurance/health-insurance/articles/saving-for-own-healthcare-vs-buying-health-insurance


For financial emergency be it medical or anything you should have an emergency fund no matter what so I think to buy full comprehensive health insurance and also prepare an emergency fund to be double insured if your budget allows so..


Regarding arogya sanjeevani and a more comprehensive plan, I think if you are completely new to health insurance and do not know many jargons go for Arogya sanjeevani policy as they have standard terms and conditions across all insurance so if you buy from care or max bupa the policy wording would be same

but if you ask me I will always go for more comprehensive insurance due to room rent capping of 5000rs in 5lac sum insured in arogya sanjeevani policy and also there is 5% co-pay in each admissible claim which is very painful to see when you make a large claim

Secondly, I know Arogya sanjeevani is cheaper but think about all the strings it comes attached with.


No insurance company will reject the rightful claim if you make all the disclosures in the proposal form this is the single most important thing that you can do on your behalf as a customer

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16 Sep, 2021

Hi Rahul,


Medical Emergency fund is no replacement for Health Insurance. Remember, the emergency fund can be used only once and at some point it will exhaust. Whereas, the Sum Insured in Health Insurance is replenished every year.


Do not be disillusioned with health insurance. Instead, take the following care -


  1. Make honest disclosures while filling the proposal form. Fill it yourself (don't depend on someone else) & double check every detail.
  2. Try to undergo medical tests as part of application process. If it's optional, choose to do it.
  3. Read your policy documents carefully after you get them. Ensure that all health related declarations made by you have been correctly recorded especially any PEDs. Seek clarifications from the Insurer within first 15 days if there is any discrepancy.
  4. Request a copy of call records if you buy insurance online. This is also saved at Insurer's end for as long as the policy is active & you can ask them to retrieve details in case of a discrepancy.
  5. Keep your policy copy & Health cards accessible to you and key family members. Opt for an e-Insurance account for easy management of your insurance.


With all of this, you should be fine. Harivansh has rightly said in this thread that no Insurer denies claims for fun. Fulfil your part well as an Insured and the Insurer will fulfil their part.


Warm Wishes,

Asad



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17 Sep, 2021

Dear Rahul

Recommendations :

1. Create medical emergemcy fund of Rs 5 to Rs 10 lakh .

2. Go for super Top of rs 50 lakh with Rs 5 lakh deductible .

3. Buy critical illness of Rs 10 lakh

3. Use health insurance and CI premium for tax benefot under section 80 D . Your cost reduces by 30 % .

Combination of fund + Super Top up + critical illness .

Hope this satisfies


Shailesh

Insurance Samadhan

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