Is Private Medical Insurance for the masses scale-able?

Medical insurance is known for its usefulness in most people’s lives when it comes to mitigating a medical crisis. But in recent times, the changes taking place in the insurance sector might be pointing to another trend gaining substantial traction when it comes to dealing with medical emergencies.

Yes, we are talking about medical loans being a more viable option for the general public when it comes to dealing with high-cost hospitalisation episodes. So is health insurance really going to become a thing of the past, opted for mostly by the rich who are able to afford the rising premium costs every year? To understand that, let’s look at how medical insurance works.

If for instance your house with ten people in it is considered to be a city, then medical insurance will ensure the health of the ten people residing in by collecting a premium from each of the ten housemates. But out of the ten people, only two or three will ever have any serious illness requiring surgery and hence, the insurance makes a profit on the premiums deposited by the group as a whole. Now, if the number of people falling sick increases, naturally the premiums also increase since private insurance companies have to make a profit on it.

Now imagine that instead of ten, all of a sudden because of migration from other less developed houses, thirty people come to stay in it and all didn’t opt for insurance because they could not afford it. When countries develop and cities become the ideal destination for people to go and settle down for better livelihood and employment opportunities, people flock rapidly to these cities from rural areas. With the increase in population density in these cities, diseases affect more people than they did earlier. Take, for instance, diabetes and cardiac diseases. It is predicted that diabetes will affect 79.5 million people approximately in India by 2030. Another such case is that of cardiovascular diseases (CVD). According to health reports and studies conducted in the year 2000, CVD has become one of the leading causes of death in India. It is also seen that it affects all sections of the society right from the young to old and poor to affluent.

Recently one of the biggest health insurance companies in India increased their premiums on mediclaim by 20%. The above-stated reasons along with an annual medical inflation  15% to 20%, the annual increase in premiums are here to stay. With increasing premiums more number of people fall out from the insurance bracket and for them, medical loans become an option.

 

With rising premium rates, the everyday Indian citizen finds it increasingly difficult to keep up with the new insurance rates. Hence, to fill in the void a more economically viable solution comes to the rescue: medical loans. A medical loan is allowed for a specific reason, whereas a generic loan can be used for any requirement. A medical loan is unsecured in nature, similar to a personal loan. Also, it is processed way faster than a personal loan.

So, why fret anymore if your insurance does not cover your medical expenses. Medical loans are your new go-to affordable solution to your medical finance troubles.

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