• 20 March, 2021
• Posted by: Pratham

What should be the adequate health insurance?

Here the definition of adequate differs from advisor to advisor as well as from the investor’s point of view. Before going ahead, we ask our client a few basic yet mandatory questions, one of the questions being:

Why do you not need Health Insurance with the coverage of 1 Crore?

Generally speaking, people tend to have a perception that Rs 5-10 Lakh sum insured health insurance plans seem significantly large and enough to take care of all medical expenses. They view the amount to be sufficient to sustain their individual as well as family’s needs and requirements in case something untoward happens, which leads to sudden hospitalisation.
However, on the other side, there has been a massive increase in the cost of medical treatment, and to be more precise – quality medical treatment. In addition, who has to say that the actual expenses incurred would not be higher than the previously estimated cost? Nobody can actually have the control on the way hospitals charge for the treatment.

What will be the case if it increases the initial 5 Lakh-insured amount?

The point is, we cannot gamble on our hard-earned money, and most importantly, our life. Its unpredictability can be justified by the recent pandemic itself. We need a way, a source where we can transfer our risk and secure any unforeseen costs. This is where health insurance comes into play.
Health Insurance is not a product or a profit-making tool created by the insurance companies. In case of hospitalisation or any treatment for few ailments requires expenses to be treated. One cannot avoid the cost for the same.

If taken insurance for the same, this risk is transferred from own wealth to Insurance company.

Yes, there are eligibility and other criteria taken into consideration, but Health Insurance is very economical way to transfer risk.
Fortunately, health insurance is available to take care of various unforeseen health emergencies. Especially now when few avenues have come up in product innovation and offering, like 1 Crore coverage for 40 Years old person coming at 20K per annum.
Good health is always the key to happiness and a prosperous life. One should definitely take this opportunity and get advantage of the life insurance.

For more details about the 1 Crore Coverage, please contact: