One development that can cause a serious setback to a family’s finances is the occurrence of a major or prolonged disease, or the requirement of a major surgical procedure. Increasing privatisation of healthcare has made healthcare more expensive.
Hospitalisation plans: Hospitalisation covers are of two types. In individual policies, the sum insured can only be utilised by the individual in whose name the policy has been issued. Family floater policies cover the entire family. The sum insured can be shared by the entire family during a year.
Top-up policies: These are meant to enhance your level of coverage. They reimburse you when your healthcare costs rise above a certain limit called the deductible. You need to pay out of your own pocket, or your base policy should cover you up to that limit. Once your costs cross that level, the top-up policy provides compensation.
Hospital daily cash benefit: Besides the cost of treatment, hospitalisation and illness entail many other costs. Cash benefit plans are meant to cover those expenses. They also provide a substitute for the loss of income during illness.
Critical illness plans: Some illnesses have a low incidence but can cause massive damage to a family’s finances because of the high cost of treatment. Critical illness plans pay out the sum assured to the beneficiary as soon as he is diagnosed as suffering from one of those diseases. Some of the diseases covered by these policies include heart attack, cancer, etc.