So why does one need (adequate) Health Insurance for himself/herself & his/her family?

Whenever we buy or plan to buy any product from the market we mostly are aware of the main reason for buying that product. For eg., if a person is planning to buy a Hair trimmer, he/she is buying it for trimming their hair or beard. You don’t buy a trimmer because it would look good as a showpiece on your drawing-room table.

Unfortunately, that’s not the case with people buying Health Insurance in India.

As per the Economic Survey Report 2019 most of us, Indians still buy Health Insurance for Tax Saving purpose. As a result, more than 87% of Indians are either uninsured or under-insured.

 

Let us look at my top 5 reasons why one should have health insurance for herself/himself & her/his family:

  1. To protect your Financial Goals: You might be working hard & saving money for your future goals, which can be your child’s higher education or for buying a house or for your retirement. But what happens if there is a major medical emergency in the family & you don’t have health insurance or don’t have enough cover?Do you still hold on to your savings & investments for your goals or now those funds would be used for that member’s treatment? Once you have used or exhausted those funds it becomes very difficult to rebuild those in a smaller time span.
    Reports highlight that Indians primarily depend on either their own savings or end up borrowing money when it comes to tackling health emergencies.
  2. Changing lifestyle: They say change is good but that’s not the case always. Commuting, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems. More & more people at a younger age are suffering from diabetes, blood pressure/hypertension, heart disease. And it doesn’t looks like its getting better anytime soon.
  3. Rising medical costs: The medical costs have been consistently on a rise. A simple cataract operation which used to cost approx Rs. 10,000 now costs more than Rs. 40,000, which is a four-fold jump in price & that too after phenomenal advancement in medical science. Health care inflation in India is more than double the retail inflation. This makes it vital not just to have health insurance but an adequate one.
  4. Quality Health Care: Quality health care comes at a cost rather at a premium. If you are accustomed to a quality lifestyle, you wouldn’t want to compromise the way you are treated in a hospital. Most of the old health insurance plans came with various cappings, like room charges, doctor consultation etc. So an old 3 lac policy only allows you to utilise Rs. 3000 room at the hospital on a cashless basis. Another challenge is that your total bill will be cleared proportionate to your room eligibility. So with the earlier example, if you occupy a 5ooo room & your total hospital bill is say 3 lacs, you won’t be reimbursed 3 lacs but only 60% of it, which is 1.80 lacs.
  5. Protecting your loved ones: Last but not the least & the most important reason to have a (adequate) Health Insurance is to provide the best possible medical facility to your family & your loved ones, if god forbid they need to be treated for a medical emergency. So if you don’t want that your bank account balance or your credit card limit or your ability to borrow money from your friends & family determine the kind of medical treatment your family member would get then it makes it very important for you to have the right & adequate medical cover for your family.

 

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