These healthcare financing companies through their cards give the borrower access to instant cash when it is needed at the hospital. Borrowers can pay the money later through EMIs.
Taking a health cover has become utmost important to support medical expenses that have been spiking. Also, given the present lifestyle and the stress associated with it, the risk of falling sick is also higher, and that’s when our health insurance policies come to our rescue.
However, even though health insurance policies are supposed to cover for medical expenses, most come with limitations. Such as a majority of insurance providers offer coverage through their insurance policies on and after hospitalization. Hence, hospital bills are generally the ones paid by insurance companies, due to which out-of-pocket expenses of individuals are rising.
To cater to such needs, many companies provide loans to people who are in need of money during medical emergencies. A few other companies, such as Affordplan and CareCover, have come up with out-of-pocket expense finance cards. These healthcare financing companies through their cards give the borrower access to instant cash when it is needed at the hospital. Borrowers can pay the money later through EMIs.
What does it offer?
People have started opting for this option as these companies cover expenses which include all type of pre-existing illnesses, and surgeries (except cosmetic). CareCover, for instance, provides a pre-approved loan card to its customers. It also comes with the option of opening a ‘health savings account’. With this savings account, you can save money for a medical exigency and make an interest income over, which is generally above the standard fixed deposit interest rates paid by banks.
Nivesh Khandelwal, Co-founder, CareCover, says, “The health savings plan is not an alternative to insurance but more of an add-on. Unlike health insurance that has exclusions, a savings plan can be used for all surgeries including pre-existing diseases or illnesses. A savings plan can be started with a health insurance product to create a more comprehensive cover.”
These cards generally provide cover up to 4 family members. The pricing of the card differs and depends on the number of family members covered in hospitalization risk.
How it is different from credit cards?
Even though this is similar to a credit card, but its usage is restricted to medical procedures or expenses in a hospital. These companies also provide zero per cent interest EMIs up to 12 months, as compared to high-interest rates of credit cards.
How can you get the money instantly?
If you are already enrolled as a member with a valid activated card, you can simply call their helpline number and provide them with basic details, such as the name of the person seeking treatment, hospital name, estimated amount required for treatment along with a letter from the hospital verifying the patient name and bill estimation.