Combining insurance with investments has a new meaning. It’s a health insurance plan along with your mutual fund investment. A mutual fund house offers cashless hospitalization, along with your mutual fund investment. You get the facility of cashless hospitalization, only if you opt for this feature with your mutual fund investment.
Having an emergency fund is a must in today’s fast World. If you are married, you must have at least 6 months of living expenses in the emergency fund. Its 3 months if you are unmarried. Your emergency fund must have money for sudden hospitalization and even for a job loss. You can keep this money in your Savings Bank Account or even in a Liquid Fund.
If you have a health insurance plan especially a cashless one, you don’t need to keep money for emergency hospitalization. It’s even better if you can get this cashless health insurance plan with your mutual fund investment. Want to know more on mutual funds? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
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If a mutual fund house has a tie-up with a third-party health management and services Company, it can offer cashless health insurance. A reputed third-party health management and services Company will have pan-India network coverage. This is thousands of hospitals, diagnostic centers, doctors and health facilities spread over more than a 100 cities.
If you opt for the cashless hospitalization facility with the mutual fund investment, you don’t need to keep money for hospitalization in the emergency fund. This facility is offered only for an investment in particular mutual fund schemes. The size of the investment must be sufficiently large enough to cover the cost of hospitalization.
The mutual fund house which gives cashless health insurance, offers this facility for investments in liquid funds, short term debt funds and even equity funds. You can avail this facility for an investment in direct and regular option, and growth and dividend options of the eligible mutual fund schemes.
You get this benefit even for SIP and lump sum investments in eligible mutual fund schemes. You may use this facility to cover family members which include spouse, parents, in-laws and dependent children. Choose either or survivor mode, so that any of the covered family members can assess the facility.
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3. How to get health insurance with mutual fund investment?
If the mutual fund house offers the cashless hospitalization facility, invest in the mutual fund scheme where you get to enjoy it. You will have to register yourself so that the third-party health management and services Company can send the medical card to your address, which is mentioned in the mutual fund folio.
At the time of hospitalization be it planned or unplanned, you will have to inform the health management and services Company. You will then have to sign a special redemption form, which would be available at the hospital.The hospital will give an estimate of the cost of hospitalization to the health insurance service provider. The health insurance service provider will redeem some of your mutual fund units immediately and block some of your mutual fund units, in case there is more payment needed for hospitalization.
The health insurance service provider will ask you to keep the medical card and other documents handy. If you cannot sign the redemption form (This might happen if you are hospitalized or injured), then the health insurance service provider would sign the form on your behalf.
In a strict sense, the cashless hospitalization facility offered by the mutual fund house is not a health insurance plan. It is just a facility offered by the mutual fund house, to help you keep the money in your emergency fund, safe from the dreaded hospital bills. Be Wise, Get Rich.
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