Ex-serviceman seeking additional health insurance: Can I have both ECHS and a private Mediclaim policy?

Ans: Hi Thangavelu, good to know that your wife is doing better. Coming to your questions, yes you can avail the insurance facilities for the same ailment in future from your existing insurance companies. However, if you purchase a new insurance policy from another company, then whether you get the coverage or not will depend on the ailment and the insurer.

For other ailments, at the time of issuance an insurer analyses the risks, given the ailment of the insured. Accordingly, the insurer takes a decision whether the policy can be issued or not, there are few insurers in the market that will keep the pre-existing diseases excluded or will have a waiting period for it. However, if your ailments have developed after the policy issuance then you can avail insurance facilities for those ailments.

Answering your third question, yes you can prefer ECHS for this specific issues and the remaining expenditure can be claimed from other insurers.

Ans: Understanding Your Health Insurance Options
You have three health insurance coverages: ECHS, corporate insurance from your bank, and MediAssist. Let's explore how you can effectively use these for your treatment.

ECHS Coverage
The Ex-Servicemen Contributory Health Scheme (ECHS) provides comprehensive healthcare to ex-servicemen and their dependents. It covers a wide range of treatments and has a broad network of empanelled hospitals.

Advantages:

Comprehensive coverage for various treatments.
Wide network of empanelled hospitals across India.
No upper limit on coverage, providing financial security for significant medical expenses.
Considerations:

May require referrals for certain treatments.
Limited to empanelled hospitals and clinics.
Corporate Insurance Plan
Your bank's corporate insurance plan provides coverage up to Rs. 3 lakh. It covers employees and their dependents under MediAssist, a third-party administrator (TPA).

Advantages:

Covers immediate family members, offering additional security.
Can be used at network hospitals and clinics under MediAssist.
Quick processing of claims through the TPA.
Considerations:

Coverage limit of Rs. 3 lakh, which may not be sufficient for major treatments.
Possible restrictions on certain treatments or hospitals.
MediAssist Coverage
MediAssist, as a TPA, facilitates smooth processing of insurance claims. It offers a network of hospitals where cashless treatment can be availed.

Advantages:

Facilitates cashless treatment at network hospitals.
Efficient claims processing and support.
Reduces the financial burden at the time of hospitalization.
Considerations:

Limited to the network hospitals under MediAssist.
Requires pre-authorization for cashless treatment.
Using Your Insurance Effectively
To optimize your health coverage, consider the following strategies:

Primary Coverage:

Use your corporate insurance plan as primary coverage for regular treatments.
The Rs. 3 lakh limit can cover most routine medical expenses and minor procedures.
Secondary Coverage:

Use ECHS coverage for more significant medical treatments and hospitalizations.
ECHS can act as secondary coverage if your corporate insurance limit is exhausted.
Cashless Treatment:

Use MediAssist for cashless treatment at network hospitals.
This reduces the need for upfront payments and eases the claims process.
Planning for Major Medical Expenses
For significant medical treatments, you may need to plan strategically. Here's how:

Initial Expenses:

Use your corporate insurance plan to cover initial hospitalization and treatment costs up to Rs. 3 lakh.
Follow-Up Treatment:

Switch to ECHS for follow-up treatments and additional medical needs beyond the Rs. 3 lakh limit.
Documentation:

Ensure all medical documentation is accurate and complete.
Proper documentation helps in smooth claim processing with both ECHS and MediAssist.

Balancing multiple health insurance coverages can be confusing. However, with careful planning, you can ensure comprehensive coverage for yourself and your family.

Your effort to understand and utilize these coverages shows your commitment to securing your family's health.


You are proactive in managing your health insurance. This approach ensures financial security and peace of mind for your family.

Final Insights
To utilize your health insurance effectively:

Use your corporate insurance for routine treatments up to Rs. 3 lakh.
Employ ECHS for major treatments and additional coverage.
Take advantage of MediAssist's cashless treatment facilities.
This strategy ensures comprehensive coverage and reduces financial strain during medical emergencies.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Having both Ex-Servicemen Contributory Health Scheme (ECHS) and a bank insurance plan gives you flexibility and additional options for healthcare. Here’s a detailed look at how you can navigate using both:

Understanding Your Options
ECHS (Ex-Servicemen Contributory Health Scheme):

Eligibility: Available to ex-servicemen and their dependents.
Coverage: Provides comprehensive medical care including outpatient care, hospitalization, and medication at ECHS empaneled hospitals and clinics.
Costs: Generally, there are minimal or no out-of-pocket costs when using ECHS facilities.
Bank Insurance Plan:

Eligibility: Typically provided by your employer or purchased individually.
Coverage: Can vary widely based on the policy but usually includes outpatient care, hospitalization, surgeries, and sometimes dental and vision care.
Costs: Usually involves premiums, co-pays, and deductibles.
Choosing the Right Option
Cost Efficiency:

ECHS is usually more cost-effective since it often has no or very minimal costs compared to private insurance plans which may have deductibles and co-pays.
Availability of Services:

ECHS has a network of empaneled hospitals. If a particular treatment or specialist is not available within this network, you might opt for your bank insurance which could provide access to a broader range of hospitals and services.
Geographical Convenience:

Consider the location and convenience of the healthcare providers. If the ECHS facilities are far or not easily accessible, you might prefer using your bank insurance.
Quality of Care:

Both ECHS and private insurance plans generally offer good quality care, but sometimes private hospitals may offer additional amenities or shorter wait times.
Specific Conditions and Treatments:

For some specialized treatments or conditions, one plan might offer better coverage than the other. Check both policies for specific exclusions and benefits.
Practical Approach
Consultation and Minor Treatments:

For routine check-ups, minor ailments, and consultations, using ECHS can be beneficial due to minimal costs.
Major Treatments and Hospitalization:

Evaluate the facilities and specialists available under both plans. If ECHS provides adequate care, it would be the economical choice. However, if your bank insurance offers better facilities or faster service for major treatments, you might prefer using it.
Emergency Situations:

In emergencies, the closest and most suitable healthcare provider should be prioritized, whether it falls under ECHS or your bank insurance.
Coordination Between Plans
Check if Coordination of Benefits is Available: Some insurance plans allow for coordination of benefits where costs are shared between two plans. This can reduce out-of-pocket expenses.
Final Recommendation
Primary Use of ECHS: Given its comprehensive coverage and low cost, ECHS should be your primary option for healthcare needs.
Supplement with Bank Insurance: Use your bank insurance for situations where ECHS services are not accessible, or the bank insurance offers significantly better or faster care.
Always review the specific terms and coverage details of both your ECHS and bank insurance plans to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I think the coverage is sufficient for you. Hence no need to buy additional insurance

Ans: I truly appreciate your clarity. Let us assess it carefully.

Assessment of Your Current Coverage
You both have ECHS coverage. ECHS is a comprehensive scheme for ex-servicemen.

It covers major illnesses and many critical treatments at empanelled hospitals.

The facilities are usually cashless in these hospitals.

It is great that you have this cover. It reduces financial pressure for most treatments.

But it does not cover all possible scenarios fully.

Sometimes certain new therapies or expensive drugs are not covered.

Also, ECHS coverage may have some limits or long waiting periods for some treatments.

Some private hospitals may not be fully under the scheme.

Need for Additional Critical Illness Cover
At 57, critical illness insurance can be expensive.

You rightly said it seems unaffordable now.

Generally, premiums rise sharply with age.

A critical illness cover pays a lump sum if diagnosed with serious illness.

But given your age and high premiums, the cost-benefit is not favourable.

It is also often limited to a certain number of illnesses.

Since you have ECHS, you have a strong base cover for treatments.

This includes treatments for cancer, heart issues, etc.

So, ECHS takes care of most critical illnesses from a hospitalisation view.

Recommendations
Given your retirement and limited affordability, skip buying new critical illness cover.

It is better to strengthen your savings and keep a health emergency fund instead.

Set aside some money in safe options like liquid mutual funds or FD.

This can be used for non-hospital expenses if a critical illness occurs.

Expenses like home care, special diet, travel, and other non-medical costs can be met from this fund.

Review your ECHS benefits booklet in detail.

Check what illnesses and treatments are covered and where.

If needed, visit an ECHS polyclinic and clarify your doubts with them.

Also, maintain good health practices.

Eat a balanced diet, exercise moderately, and take regular check-ups.

Managing stress and staying active helps reduce health risks.

Exploring Alternatives to Critical Illness Insurance
Instead of insurance, focus on boosting your emergency health corpus.

Keep at least 6-12 months of expenses in an easily accessible account.

This should be separate from your usual savings.

Avoid putting large sums in long-term products now.

Keep funds accessible for any sudden need.

In case of any serious illness, your first line of defence is ECHS.

If there is any shortfall, your emergency corpus will help.

Additional Points for Financial Security
If you have any investments in mutual funds or stocks, review them carefully.

At this stage, avoid risky investments like small caps or thematic funds.

Shift more to conservative or balanced options.

Do not take loans or withdrawals from your retirement corpus.

Keep your expenses in check and avoid high-luxury spends now.

If your children are financially settled, avoid gifting large amounts.

Focus on your own and your wife’s comfort and security.

If you have any life insurance policies (LIC or others), review if premiums are needed.

Sometimes, old policies may no longer be useful if there is no financial dependent.

Also, check your will or estate planning documents.

Make sure they are up to date and your wife knows about them.

Benefits of Not Taking Critical Illness Cover Now
Premiums at your age are very high.

ECHS already covers hospital costs for most serious illnesses.

So, you save on insurance premium money.

You can use that money to build a medical emergency corpus.

No need to worry about claim denials for pre-existing conditions.

Less paperwork and no extra policy to manage.

You also avoid the disappointment of policies that do not pay for newer treatments.

Instead, you can use your emergency corpus flexibly.

Best Way Forward
Do not buy additional critical illness insurance.

Focus on building a liquid medical emergency corpus.

Use your ECHS as the primary cover.

Maintain good health and keep your expenses under control.

Review all existing investments and make them more secure.

Keep 1-2 family members informed about your ECHS and other investments.

This ensures no confusion in emergencies.

If you feel unsure, consult a Certified Financial Planner.

They will guide you in balancing investments, health costs, and retirement income.

Finally
ECHS gives you a strong base of health coverage.

At this stage, a critical illness policy is too costly and not needed.

Focus on an emergency corpus, healthy habits, and careful investing.

You have done well by thinking ahead.

With these steps, you can enjoy your retirement with confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment