Who Pays When You’re Hospitalized?

The worst moment of someone’s life can be when they’re going about their life, all healthy and happy, and suddenly, an emergency lands them in the hospital, that too with a jaw-dropping bill that they never saw coming.

Now, they have two options: either their health insurance pays for it, or it comes straight out of their pocket. And if they don’t have enough savings? A loan.

And, to be honest that’s the reality for millions in India. In fact, 35% of personal loans taken by millennials in fintech are for medical expenses. Which is a warning. Because medical inflation is skyrocketing, and one hospitalization can wipe out months of income, where having a health insurance with enough sum insured can be the only help.

What is Health Insurance, Really?

In the simplest words, it’s the financial security that protects you from medical expenses that can derail your life. Insurers either offer cashless treatment or reimbursement treatment according to their terms and conditions.

But, the mistake most people make is they wait too long to get insured. Health insurance is the cheapest when you’re young and healthy. If you wait until you have a medical condition, you might face higher premiums, waiting periods, or even rejections.

Another common mistake is picking the cheapest plan without checking the fine print. Some plans cap room rent, and leave you with a hefty out-of-pocket cost. Others have co-payments, which make you pay a percentage of the bill. And then there’s the waiting period for pre-existing conditions. But knowing it all is very tough for outsiders that’s why expert advice matters. Instead of blindly chasing the lowest premium, look for a policy that actually covers what you need, hospitalization, critical illness, OPD benefits, and more. Because the wrong plan is equal to having no plan at all.

Medical bills won’t wait. The best time to get health insurance is today. It’s your financial backup when life throws unexpected health crises your way. So, what is it going to be for you? A small premium now or a big problem later?