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Why Crowdfunding is a Better Option Than Medical Insurance for Medical Emergencies?

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    Medical Insurance

    Medical costs are increasing with every passing day. Due to this, not everyone can afford good medical services or medical insurance in India. The only way to cope with these issues is to take medical insurance or loans. However, these may not be effective tools during medical emergencies. Another, more effective option comes in the form of fundraising, which is of two types: online and offline fundraising.

    With online crowdfunding platforms like Ketto, it has become all the more convenient for people to contribute to a noble cause that creates a greater positive impact on society. Medical fundraisers come in handier than medical insurance policies or loans, which could give rise to delayed treatments, increased costs, and the burden of repayment.

    Offline fundraising can be a hassle as it requires promotion, a venue, a crowd, and several other resources that you may not be able to organise quickly in times of crisis. This is where crowdfunding platforms fit in. On Ketto, a person needs only to sign up, fill in the details of their campaign, submit all the required documents, and voila, their campaign is set to go live on the internet. Once it goes live on Ketto, there is the option to share the fundraiser with friends, family, colleagues, and whoever else can contribute to the campaign and do their bit.

    Medical crowdfunding

    Crowdfunding refers to the gathering of funds from individuals for a common cause. Every individual can contribute a small amount, which will add up to a significant amount in the long run when more people contribute the same. When a fundraiser is set up for medical reasons, it is referred to as medical crowdfunding. This refers to seeking monetary help from people across the globe who feel strongly about medical emergencies and want to help people recover from illnesses.

    Online crowdfunding is transparent and convenient, and can be done without any investments. The affected person can focus on their recovery rather than worrying about their finances. Medical emergencies can come up out of the blue and people need to be prepared for the same at all times.

    Medical insurance policies

    In a country like India, most of the income of an individual is spent on medical needs. Since India is a developing country, medical facilities are relatively limited and often costly. To deal with such a situation, most people opt for medical insurance. Through insurance, an individual is eligible to receive funds for their medical needs like surgeries, tests, and medication.

    Although it is considered one of the best financial decisions, people often forget that taking out an insurance policy can be risky. Often, insurance providers do not cover the whole expense of the treatment. For life-threatening and expensive procedures like bone marrow or kidney transplants and chemotherapy, medical insurance may run its course in mere days, leaving the rest of the bills unpaid. When the insurance is not settled, the treatment is delayed. This can result in further complications.

    In addition, most of the insurance claims in India are rejected on unreasonable grounds. This means that 70-80% of Indians have no choice but to stick to private healthcare and pay from their pockets.

    The other solution is to take a medical loan, but this also comes with risks. After a person has utilised the loan, they will need to repay it. Often these loans are accompanied by huge interest rates that are hard to deal with. It is also noteworthy that medical loans take time to be sanctioned, which may not be feasible in the case of a medical emergency as there is a life at stake.

    How is medical crowdfunding a better choice compared to medical insurance?

    Since medical insurance can be exhausted in a short period and medical loans take a certain amount of time to be approved, the best option is to go for an online medical fundraiser. Once the campaign is live, there will be no need to worry about medical expenses. The results are immediate and transparent, and fundraisers do not have to worry about repaying high interest rates.

    Does Ketto provide 80G for all donations?

    Any charitable organisation that falls under the 80G section under the Income Tax Act is registered as a charitable trust in India. Due to this, a person will receive an 80G certificate whenever they contribute to a charitable trust. The beneficiary can also be given a free pass from taxes.

    If a person has the 80G certificate for the donation they made, they can attach this certificate when they file income tax returns. The deduction on income tax returns can be as high as 50% if it is a registered charitable trust.

    Ketto gives no income tax returns advice on its own. People should consult a professional before they file income tax returns. It should also be noted that not all donations yield an 80G certificate as all organisations are not registered under the 80G section.

    Final thoughts

    With Ketto, you can make a difference in someone’s life by helping them cope with their medical expenses. You will give someone a better chance at life whenever you donate to a medical fundraiser on Ketto. You are also eligible for income tax deductions when you contribute to certain charitable trusts in India. Sign up on Ketto today and save a life!

    Read Here’s Why Crowdfunding Is The Best Alternative To Health Expenses In India.

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