Buying a health insurance policy can help you with comprehensive coverage for your health. This type of plan helps cover the financial costs and treatments related to your health. Under this type of policy, you can avail a range of benefits that hail from pre and post-hospitalization covers, medicinal expenses, ambulance cost diagnosis, and so much more.
All it takes is for a specific person to scout for the best health insurance plan for themselves to make the most of these benefits in need. But the question is, what happens to all of this after the policyholder passes away? Will the insurance plan get canceled after their death, or is the plan passed on to someone else? Let us find out!
How Does One Examine The Policy Documents To Learn About Such Benefits?
After the death of a policyholder, there is a clause relating to the death benefit that may come to play. Let us learn about it.
Death benefits are claimed by individuals who belong to the family of the policyholder. This means after the policyholder’s demise, the death benefits can be leveraged by the family to ensure their health safety and financial stability in the long run. For this purpose, it is important to examine the policy documents. This is where you will get maximum information about the death benefits relating to the policyholder’s insurance. This type of death benefit clause can also be reviewed by the policyholder himself to understand what happens to their insurance plan after their demise.
The death benefit clause is indicative of coverage for family members even after your demise. This provides a sense of peace to the policyholder about their family’s safety of health which is covered even after their death. Other members could also be a part of this health insurance policy as per the changes made. However, they must be qualified to obtain these benefits based on their income and age.
Let us take an example to help you understand better-
Mrs. Sharma and her immediate family members received the cover. This was done under a Family Floater plan. But due to certain unforeseen reasons, Mrs. Sharma passed away during her policy holding period. However, as per the death benefit clause, the policyholder’s family continues to receive medical insurance even after the untimely death of Mrs. Sharma.
So, it is best to learn about your death benefit clause or create one with the assistance of your health insurance provider. This can render you peace of mind that will help you keep all obstacles at bay.
Diverse Health Insurance Policies To Showcase The Effects Of Policyholder’s Death On The Health Insurance
1. Individual Health Insurance Plan
This is a comprehensive health insurance plan that only covers a specific person who has bought it. This means this type of plan only covers the policyholder’s healthcare-related treatments and costs. It also goes on to say that the policyholder can leverage this plan by opting for daycare expenses, hospitalization costs, ambulance expenses, and more for themselves in times of crisis.
In the case of the death benefit, if the policyholder has only chosen to provide cover to themselves under this plan, it is evident that the policy will cease in existence once they have passed away.
2. Family Floater Health Plan
In this Medical insurance plan, the family members of the policyholder may be entitled to comprehensive coverage under a single roof. However, in this type of plan, they have to share the benefits of the insurance. Family floater plans are specifically suited for those families that are small-sized and nuclear. As such, until it reaches its exhaustion period, the sum insured can be enjoyed by everyone in the family who is covered under this plan.
Under this type of Medical insurance plan, the family can continue to receive insurance coverage even after the demise of the policyholder. This means that the death of the policyholder does not affect the health insurance plan of the remaining family in this case. However, if the policyholder was the one paying for the insurance premiums, then it is important for someone else from the family to contact the insurance agency for more details on the same.
3. Group Health Insurance
This type of best health insurance is offered by employers to their employees. That is why it is critical for you to find out whether the organization where you are working provides any such benefits. In such a case, sometimes certain plans make provisions where you can cover another family member from your family.
This means that in the case of the death of the employee, who is also the policyholder, the policy will cease to exist. However, the employer will have to offer compensation to the member of the family who was being covered under the same plan. This means the member who was covered under this plan and who can no longer enjoy the benefits of this type of plan gets to leverage the compensation provided by the employer.
The Bottom Line
Medical insurance is important for everyone who is looking to ensure their good health and well-being without pinching pennies in the long run. This type of plan provides cover for medical expenses and treatments that may have otherwise required you to make expenses from your own pockets. As such, it can foster financial security and the concept of savings and help provide a layer of comprehensive protection to everyone in need.
So, make sure you scout for the best health insurance plan while there is still time. After all, your health is the most significant.