No Medical Insurance? Here’s What You Can Do

As per a recent survey, 46% of the participants purchased health insurance policies, while 44% bought life insurance policies for the first time due to the COVID-19 pandemic. With time, people realise the importance of purchasing an insurance policy. 

However, some people cannot get a health insurance policy because of past ailments, advanced age, pre-existing diseases, etc. Insurers do not agree to extend the insurance coverage due to high-risk prospects. Such people can explore other alternatives, which are mentioned below.

• Creating a health contingency fund

Starting early becomes crucial. Get started with systematic investment plans in mutual funds (MFs). Within a few years, you will accrue a decent corpus. The creation of a healthcare fund needs to be your top priority. Also, this fund needs to be over and above your emergency fund. You will need to consider your age, inflation, and medical inflation while estimating the corpus size you want to accrue.

Mostly you will need at least Rs 5 to 10 lakh. Check on the hospital rates you would probably visit for your treatment.

Choose a liquid or a shorter-duration debt fund when your horizon is limited to up to one year. Opt for hybrid funds when you have three to five years. Go for equity funds when you have more than seven years.

• Enrol for a group plan

You will manage to get insurance cover even though you have pre-existing ailments when you have a corporate health policy from your employer’s side. Sign up for a group policy even if you need to pay a part of the premium amount. Opt for a top-up if available, as you will be allowed to continue with such add-on options even after quitting an organisation. A few insurers permit people to switch from a group plan to a retail plan on leaving their job.

Check if you can become a part of group insurance covers either in professional or non-professional circles you are part of. Several banks render customised group health insurance covers to depositors, account holders, borrowers, fixed deposit (FD), and credit cardholders. Insurance covers on credit cards and FDs are generally complimentary.

• Self-insure yourself

Even though you have a health policy, it may not extend coverage for exclusions and pre-existing ailments for a specific period. Every insurance claim may not get approved. Hence, one could always consider self-insurance as an option.

Insurance claims mostly tend to be rare between 25 and 45 years old. When you start creating a health corpus fund during this period, you will self-insure yourself easily. The only risk would be that you will have to depend on your savings when you fall ill while accruing the corpus.

• Purchase a personal accident policy

A personal accident policy may not compensate for the lack of a health insurance cover; however, it will cover the treatment costs concerning accidents and significant disabilities. If you cannot buy a health insurance policy because of a pre-existing disease, you need to purchase a personal accident policy immediately. Your income will be considered a personal accident policy, not your health background.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in