Health Insurance Plans for Lower Income Group
Everyone knows how costly health care can be even in the best of circumstances. Then how can underprivileged people afford such services! Medicare is something, which is crucial for everybody because health problems can arise any time.
Medical insurance is quite expensive in keeping with the cost of various procedures at hospitals and other health care units. Because people from lower income groups are unable to afford health insurance, government schemes are in place that brings help to the poor sections. Here is a look at micro insurance, which is a step in the right direction.
Micro Insurance Micro insurance is a scheme, which is specifically for the lower income to poor people in the country. This package related to financial services covers their medical risk through payment of small premiums regularly. In the rural belts, many persons are unable to earn regularly because of agrarian economy. Illiteracy is another important reason. Micro insurance hopes to bridge this financial gap and allow low-income families to get a medical breather when the need arise.
Through such micro insurance schemes, the government hopes to allow poor families to save their existing assets when health problems strike. Some of these assets may include their home, carts, crop, food grains, and bank loans.
Types of micro Insurance There are various types of micro insurance schemes hoping to provide the low-income families complete financial security under a variety of situation. While health care is one of the major areas covered this is not the only one. Health insurance policy under this scheme provides protection to families from death of the earning member. Other covers include medical expenses related to illness or injury and resultant hospitalization. Besides the health schemes, there are also life insurance, livestock cover, and cover for the crops.
Need for steady Income There is no doubt regarding the fact that premiums related to micro insurance schemes are quite low. Even then, it is necessary to pay these steadily and on a regular basis. In such a scenario, people without fixed income may find it difficult to go for such programs. Government of India has also looked into this problem and has provided a number of regular income schemes. This includes SGSY and NREGA programs that are trying to provide a regular income source for low-income families in India. In order to implement these successfully and ensure success the role of NGOs and corporate, along with charitable trusts cannot be denied.
Roadblocks to Tackle Illiteracy, limited awareness among the targeted section, and improper implementations are some of the problems that require tackling. Private companies desiring to offer medical insurance to low income families find it difficult. Absence of proper infrastructure especially at the rural levels along with the reluctance of low-income families affects the success of their intentions. Most people belonging to this group do not believe in regular savings or tying up their money in such schemes and it is difficult to change their mindsets. Even then, things have changed for the better gradually, yet steadily. So in the future, things might look up substantially for micro insurance.