THE HIDDEN FORTRESS

Health insurance is an unseen shield that you can't afford to ignore

Health is wealth is a timeless adage that emphasizes the importance of good health. Ill health has the potential to deplete hard-earned wealth, especially given the escalating medical costs and the growing prevalence of ailments. It is crucial, therefore, to safeguard ourselves against such financial burdens.

Health insurance emerges as an indispensable shield, offering protection by covering medical expenses resulting from illnesses up to the chosen coverage limit. Furthermore, a health insurance policy guarantees that financing medical treatment is no longer contingent upon one’s financial capacity and shields individuals from the peril of exhausting their savings in the face of a medical event.

Despite the surging demand for health insurance products in the wake of the pandemic, the retail health insurance penetration rate stands at a meagre 3.5% of the population, highlighting its under-penetration.

This signifies a heavy reliance on personal savings to address healthcare needs within society. While using savings for routine medical expenses may not cause significant financial strain, unforeseen events, especially medical emergencies or chronic illnesses, can wreak havoc on one’s finances.

The exorbitant costs associated with medical procedures and subsequent treatments have the potential to completely deplete an individual’s savings. This often leads to indebtedness as individuals spare no expense in accessing the best available medical care.

To fully comprehend the profound impact of a medical event on personal finances and, in turn, recognize the need for health insurance coverage, it becomes essential to grasp the concept of medical inflation.

WHAT IS MEDICAL INFLATION?