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Rising medical costs: How Health Insurance and Life Insurance can offer a complete cover

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Rising medical costs: How Health Insurance and Life Insurance can offer a complete cover
March 11, 2024

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The escalating healthcare expenses in India, driven by various factors such as inflation, rapid technological advancements in medicine, the prevalence of lifestyle-related diseases, and the enduring impact of the Covid-19 pandemic, are increasingly becoming a financial strain on both individuals and families.  According to the Sustainable Development Goals National Indicator Framework Progress Report 2023, more than 90 million Indians live in households where healthcare expenses account for more than 10% of their total expenditure. The proportion of households spending over 10% or 25% on their healthcare expenses has gone up between 2017-18 and 2022-23.1

These surging medical costs have the potential to swiftly deplete financial resources, particularly when unforeseen medical emergencies or critical illnesses strike. To navigate this challenging landscape, health and life insurance policies have emerged as indispensable safety nets, offering comprehensive protection.

In this article, we will explain how health and life insurance reduce rising medical costs. Additionally, we'll help you choose the proper insurance plan for your requirements and circumstances.

Together, health insurance and life insurance form a formidable defence against the financial impact of soaring medical expenses. Here's how they work in unison to provide you with security and financial stability:

  1. Financial Assurance

    2. Health insurance and life insurance offer invaluable financial security. Health insurance provides essential stability during medical emergencies, shielding individuals from depleting their savings. In parallel, life insurance serves as a financial safety net for families in the unfortunate event of the policyholder's untimely demise, ensuring that medical expenses are managed without compromising financial stability.

  2. Comprehensive Coverage

    3. Both health insurance and life insurance deliver comprehensive coverage. Health insurance health insurance plans like Click 2 Protect Optima Secure cover a broad range of medical expenses, including pre and post-hospitalization costs, domiciliary hospitalisation, ambulance charges, and more. Life insurance, beyond covering medical expenses, provides a lump sum to address healthcare costs and a range of other financial needs.

  3. Critical Illness Support

    4. Health insurance and life insurance play pivotal roles in addressing critical illnesses. Health insurance ensures access to essential financial resources for the treatment and recovery of severe ailments. Concurrently, life insurance policies such as HDFC Life Click 2 Protect Super offer the benefit of critical illness support if the policy holder has opted for the Critical Illness rider. In this case a lump sum amount equal to the sum assured is paid upfront if diagnosed with one of the specified critical illnesses.

  4. Accidental Disability Assistance

    5. Both health insurance and life insurance recognize the financial adversity that can result from accidents leading to disability. Health insurance steps in to cover medical expenses associated with such accidents. 

Things to Consider while Selecting the Right Insurance Plan

Consider these crucial factors when selecting an insurance plan for your financial security and specific needs:

  1. Assess Your Current Finances

    2. To start, take a close look at your finances right now. This means examining how much money you're making, spending it on, what you own, and any debts you might have. This evaluation is essential because it helps determine how much insurance you might need for unexpected situations.

  2. Timing Matters

    3. It's wise to consider getting insurance when young and in good health. This is because the cost of insurance, which is called the premium, is usually lower for younger people. Getting insurance while young can give you more options that fit your budget and provide financial security for the future.

  3. Look for Customization Options

    4. Some insurance plans offer flexible choices so that you can pick what suits you best. This means you can adjust your insurance to match your specific needs, making sure you get the coverage that makes the most sense for you.

  4. Understand Waiting Periods

    5. Waiting periods represent intervals during which specific types of coverage are not applicable. Most health insurance plans incorporate waiting periods that can range from 30 days to several years. Nevertheless, specific plans extend immediate coverage for accidental injuries. If you have pre-existing health conditions or require particular types of coverage, it's crucial to comprehend the waiting period before finalising your policy.

Conclusion

The escalating medical costs in today's world underscore the vital role of health insurance and life insurance in providing comprehensive coverage. These insurance options not only shield you from the financial burdens associated with rising medical expenses but also extend a protective embrace over your family's future.

By evaluating your financial situation, recognizing the opportune moment to secure insurance, determining the suitable coverage amount, exploring customization possibilities, and understanding waiting periods, you pave the way for a secure and resilient financial foundation.

Source: 

1. https://timesofindia.indiatimes.com/india/healthcare-bill-is-over-10-of-total-spend-for-90m-indians/articleshow/101406402.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst&trk=article-ssr-frontend-pulse_little-text-block

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Disclaimer

For all details on Riders, kindly refer to the Rider Brochures available on our website. 

HDFC Life Click 2 Protect Super (UIN No.: 101N145V02) is a Non Linked, Non Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. Life Insurance Coverage is available in this product.

HDFC Life Critical Illness Plus Rider (UIN: 101B014V02) is available with HDFC Life Click 2 Protect Super.

HDFC Life Income Benefit on Accidental Disability Rider (UIN: 101B013V03) is available with HDFC Life Click 2 Protect Super.

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