Cashless Claim Denied? Bank on Credit Card, Pledge Gold or Fixed Deposit

Healthcare expenses can be overwhelming, and cashless claims are often a lifeline for many. However, there are instances where cashless claims get denied. When faced with such a situation, it’s essential to explore alternative financial avenues. This blog will delve into three primary options: utilizing credit cards, pledging gold, and leveraging fixed deposits.

What is a Cashless Claim?

A cashless claim is a feature provided by health insurance companies that allows policyholders to get treated without paying upfront at network hospitals. The insurance company settles the bills directly with the hospital, simplifying the process for the insured.

Reasons for Cashless Claim Denial

There are several reasons why a cashless claim might be denied:

1. Pre-existing Conditions: Treatment for pre-existing conditions not covered under the policy.
2. Policy Lapse: If the policy has expired or premium payments are overdue.
3. Non-Network Hospital: Treatment sought in a hospital not in the insurer’s network.
4. Documentation Issues: Incomplete or incorrect documentation submitted.
5. Policy Exclusions: Certain treatments or conditions excluded from the policy.

When faced with a denied cashless claim, it’s crucial to have a backup plan. Let’s explore three effective financial alternatives.

1. Utilizing Credit Cards

Advantages of Using Credit Cards

Credit cards can be a lifeline in emergencies, offering several advantages:

1. Immediate Access to Funds: Instant access to credit for medical expenses.
2. Interest-Free Period: Many credit cards offer an interest-free period, allowing you to manage finances without immediate pressure.
3. Reward Points: Earn reward points on medical expenses, which can be redeemed later.

Choosing the Right Credit Card

When relying on credit cards, it’s essential to choose the right one. Look for cards with:

1. Low Interest Rates: Cards with lower interest rates can help manage debt more effectively.
2. High Credit Limit: Ensure the card has a sufficient limit to cover significant medical expenses.
3. Medical Benefits: Some cards offer specific benefits for medical expenses, such as cashback or discounts.

Managing Credit Card Debt

While credit cards provide immediate relief, it’s crucial to manage debt wisely:

1. Pay More Than the Minimum: Aim to pay more than the minimum due to reduce interest accumulation.
2. Balance Transfers: Consider balance transfer options to a card with a lower interest rate.
3. EMI Options: Convert large expenses into manageable Equated Monthly Installments (EMIs).

2. Pledging Gold

Why Pledge Gold?

Gold has been a trusted asset for centuries, and pledging gold is a viable option for securing funds:

1. Quick Loan Approval: Gold loans are processed quickly with minimal documentation.
2. Lower Interest Rates: Interest rates on gold loans are generally lower compared to personal loans or credit cards.
3. Flexible Repayment: Flexible repayment options are available, allowing you to repay the loan as per your convenience.

How to Pledge Gold

To pledge gold, follow these steps:

1. Choose a Lender: Opt for a bank or a reputable financial institution.
2. Gold Valuation: The lender will appraise the gold to determine its value.
3. Loan Disbursement: Based on the gold’s value, the loan amount is disbursed.

Repayment Tips

While gold loans offer flexibility, ensure you:

1. Understand Terms: Be clear about the loan’s interest rate and repayment terms.
2. Timely Repayment: Make repayments on time to avoid penalties and possible auction of pledged gold.

3. Leveraging Fixed Deposits

Benefits of Fixed Deposit Loans

Fixed Deposits (FDs) are another reliable option for securing funds:

1. Collateral Security: FDs can be used as collateral to obtain a loan.
2. Lower Interest Rates: Loans against FDs typically have lower interest rates.
3. Continued Interest Earnings: The FD continues to earn interest even when pledged.

Process of Getting a Loan Against FD

Here’s how to leverage your FD:

1. Approach Your Bank: Contact the bank where the FD is held.
2. Loan Application: Fill out a loan application form and submit required documents.
3. Loan Disbursement: The loan amount, usually a percentage of the FD’s value, is disbursed quickly.

Considerations for FD Loans

When opting for an FD loan, keep in mind:

1. Loan Limit: The loan amount is typically 70-90% of the FD’s value.
2. Repayment Terms: Understand the repayment terms to avoid penalties.
3. Impact on FD: Ensure that the pledged FD is not prematurely closed, as it can impact your loan terms.

Also Read: Best SBI Card for Rewards: An In-Depth Guide

Conclusion

Facing a denied cashless claim can be daunting, but exploring financial alternatives like utilizing credit cards, pledging gold, or leveraging fixed deposits can provide much-needed relief. Each option has its advantages and considerations, so choose the one that best fits your financial situation and needs. By being prepared and informed, you can navigate medical emergencies with confidence and ease.