Bet you have't heard of crowdfunding insurance
What's the story
Over the past few years, crowdfunding has emerged as a popular solution for everything from startup dreams to healthcare insurance in India.
This new trend provides a ray of hope for those who find conventional health insurance plans either unaffordable or insufficient for their requirements.
By pooling funds from a large community, crowdfunding insurance models ensure that no member faces the burden of exorbitant medical costs alone.
Basics
Understanding crowdfunding insurance
Crowdfunding insurance works on the principle of pooling resources. Individuals contribute small amounts of money (often regularly) into a collective fund. This fund is then used to cover the medical costs of any member who falls ill.
Unlike conventional insurance, there are no set premiums or policies issued by companies. The community itself manages the pool of money and determines how it should be distributed based on need.
Advantages
The benefits unveiled
A major advantage of crowdfunding insurance is its flexibility and inclusiveness.
It covers treatments that are typically not included in traditional health policies, such as pre-existing conditions and experimental treatments.
And, because there is no profit motive, administrative costs are significantly lower. This makes it more affordable for everyone, further increasing its attractiveness.
Mechanism
How it works in practice
When someone is hit with a medical crisis and can't afford the cost, they can apply for help on the crowdfunding platform.
The community evaluates the case, and if greenlit, funds are disbursed directly to pay those medical bills.
Donors can follow where their cash is flowing and witness the difference they're making in someone's life.
Considerations
Potential challenges
However, the concept of crowdfunding insurance also comes with its fair share of drawbacks.
Guaranteeing transparency and combating fraud necessitates strong mechanisms and vigilant community moderation.
Plus, in case multiple members need high-cost medical care at the same time, there is a possibility that the collected funds may fall short of fulfilling all claims.
Evaluation
Making an informed decision
For anyone thinking of joining a crowdfunding insurance model in India, doing your homework is key.
Check out the platform's track record of claims settled, read member testimonials, and know how they handle disputes.
Joining such a model isn't just about getting covered; it's also about feeling part of a community by helping others when they need it most.