Rethinking Protection in an Age of Rising Medical Costs
In a country where over 60% of healthcare expenses are paid out-of-pocket, buying a health insurance policy might just be one of the smartest financial decisions you can make.
Yet, many people still ask: “Why should I pay a premium every year if I don’t even fall sick?” It’s a fair question. But as we’ll explore here — it’s also the wrong one.
Premiums Feel Like a Loss — Until They’re Not
Let’s admit it: health premiums don’t give the same instant gratification as a mutual fund SIP or an FD. There’s no visible growth, no immediate returns. But that’s because insurance isn’t an investment — it’s risk protection.
As Nilesh Shah , MD of Kotak Mahindra Asset Management Company, rightly put it: “Health insurance is not an expense, it’s a protection. You insure your life, your car, your house ,why not your health, which is the costliest of all today?”
The cost of a single surgery or critical care admission can wipe out years of savings. Think ₹5–10 lakh bills for cancer, cardiac surgeries, or prolonged ICU stays. A modest annual premium of ₹15,000–₹20,000 begins to look like a steal.
The Reality: Medical Inflation Is Beating Your Savings
According to a 2023 report by Care Health Insurance, India’s medical inflation is around 14% annually ,one of the highest in Asia.
That means what costs ₹1 lakh today could cost ₹3.7 lakh in just 10 years. Rathin Roy, economist and former member of the PM’s Economic Advisory Council, noted: “If public health infrastructure doesn’t catch up, individuals must hedge their personal risks with financial products like insurance — or face economic shocks.”
When Might Health Premium Feel Like a Waste?
Yes, there are situations where premiums feel burdensome:
- You’re young and healthy, so you never file a claim
- You don’t understand your policy and feel “cheated” during exclusions
- You only see short-term costs, not long-term protection
But consider this: do we ever complain that our fire extinguisher went “unused”? Or that our home didn’t catch fire after installing an alarm system? Insurance works on the same principle. As Dr. Devi Shetty , renowned cardiac surgeon and healthcare entrepreneur, puts it: “The biggest reason for bankruptcy in India is healthcare costs. A middle-class family becomes poor the moment one member is admitted to hospital without insurance.”
What You Really Get from Health Insurance
- Financial Protection from Big Medical Bills
- Access to Quality Treatment, When It Matters Most
- Cashless Hospitalisation Across Networks
- Tax Benefits Under Section 80D
- Peace of Mind for You and Your Family
A Mindset Shift: From Expense to Empowerment
In a culture where many still believe “insurance is only for old or sick people,” it’s important to flip the narrative.
Health insurance isn’t a luxury. It’s a life strategy.
Have you reviewed your policy this year? Let’s talk — and help you stay one step ahead of unexpected health costs.
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