Health issues don’t just harm physically; they can also lead to financial ruin. The rising cost of medical treatment has turned illness into an economic problem. A single illness and the cost of treatment can wipe out years of savings. Nithin Kamath, co-founder and CEO of Zerodha, has highlighted this serious issue.
Hospitalization Can Lead to Bankruptcy
Nithin Kamath recently posted on the social media platform X about how serious this problem has become. He wrote that most Indians are just one hospitalization away from bankruptcy. In other words, many people in India could become financially ruined if they need to be hospitalized.
Kamath stressed the importance of having a good health insurance plan. He also provided guidance on how to choose a health insurance plan, outlining three key steps.
See here also : these-things-harm-your-heart-health-the-most-are-you-guilty
1. Check the Company’s Track Record
When choosing a health insurance plan, the first step is to evaluate the insurance company. It is important to know the company’s track record and the hospitals in its network. You should look at the company’s Claim Settlement Ratio (CSR) and Incurred Claim Ratio (ICR).
2. Ensure Essential Features Are Included
The second step is to check that the insurance plan includes certain essential features. According to Kamath, the plan should not have co-payments, room rent restrictions, or sub-limits based on diseases. Look for features like low pre-existing disease waiting periods, pre- and post-hospitalization care, restoration benefits, and daycare treatments.
3. Additional Beneficial Features
If your health insurance offers extra features, it’s even better. Kamath mentioned some “good-to-have” features, including domiciliary cover (home admission), free annual health check-ups, alternative treatment cover (such as Ayurveda, yoga, naturopathy, Unani, Siddha, homeopathy), and loyalty bonuses or wellness discounts.
By following these steps and ensuring you have the right features in your health insurance plan, you can better protect yourself from financial strain due to medical expenses.
