Costs of Health Insurance During COVID-19 Pandemic

Insurance penetration in India is amongst the lowest across the globe. However, in the wake of the coronavirus (COVID-19) pandemic, an increasing number of people are looking for coverage. As the number of positive cases continues to rise, the Insurance Development and Regulatory Authority of India (IRDAI) is asking health insurers to offer short-term COVID-19 plans.

With inflation affecting the healthcare costs and the uncertainty created by the pandemic, consumer sentiments have seen significant changes. People have started looking for health and overall insurance coverage to safeguard their financial stability.

Based on a study, the following research has come to light:

  • Life and health insuranceplans have gained prominence in the country
  • One out of three people has searched for new plans
  • One in four people has bought a new policy
  • Retail health insurance segment showed a 25% year-on-year (YoY) growth

As the coronavirus pandemic continues to spread, the future of medical insurance is seeing major developments.

Here are a few of these:

  • Millennialsare understanding the importance of getting comprehensive health coverage against new diseases
  • Women are more eager to avail of insurance coverage as compared to men
  • Individuals will opt forhealth insurance plans that reward them for staying fit and active
  • People have become more concerned about rising healthcare costs

As theIRDAI urges insurers to offer health insurance for coronavirus, the pandemic has been an eye-opener for several people. Health coverage is no longer considered as a ‘good to have’ option; today, it is perceived as a ‘must-have’ insurance policy. For individuals who currently do not have coverage, the Corona Rakshak Policy is an ideal alternative to purchaseCOVID-19 health insurance.

The plan offers coverage between INR 50,000 to INR 2.5 lakh. It is a short-term policy available for 105, 195, and 285 days. The premium on this plan is affordable, ensuring financial stability in case of a positive diagnosis. This coronavirus health insurance policy covers hospitalization and quarantine expenses at an authorized facility.

For people who still do not have health coverage, they must buy this insurance plan without further delay.

Here are three reasons why one must buy cashless health insurance:

  • Healthcare costs are increasing due to medical inflation, which is approximately twice the rate of regular inflation
  • Premium on health plans may rise by 5% to 25% later in 2020
  • Government healthcare infrastructure is poor, and without mediclaim policies, it may be impossible to seek top-quality treatment in a private facility

As per expectations,

more people may buy health coverage during this pandemic, ensuring treatment and hospitalization costs become affordable.