We all talk and listen a lot about financial planning and the importance of
right asset allocation for Equities, bonds, gold, real estate etc. but even the
best of the allocation strategy will fall apart if we are not adequately
insured for life and health.
While
many of us have a life insurance, though very small and inadequate, majority of
Indians have no health insurance. As per recent National Sample Survey Data released in April 2016, Over 80 per cent
of India’s population is not covered under any health insurance scheme. The
data reveals that despite seven years of the Centre-run Rashtriya Swasthya Bima
Yojana (RSBY), only 12 per cent of the urban and 13 per cent of the rural
population had access to insurance cover. This poses a major threat to a
family's financial future.
Treatment costs for majority of critical illness have gone up 3 to 4 times
in past 15 years. For instance the average cost of treatment for breast cancer
through a private practitioner would be Rs 5-6 lakh, including investigations,
surgery and radiotherapy. However, with targeted therapy, six cycles of
chemotherapy can cost up to Rs 20 lakh (Source: Google search average cancer treatment cost in india).
According to the World Health Organization (WHO), nearly 10 lakh new cases are
reported in India every year. Assuming inflation at 6%, treatment cost of
critical illness could go up by another 300% in next 20 years.
Adequate Health Insurance
for all the members of the family is a must so that high unforeseen medical
expenses do not jeopardize the financial health of the family. There are many
private and govt. owned health insurance providers with flexible plans to suit
your needs. Depending on your income and financial goals one can choose a
product from an insurance company which has good track record for claim
settlement and covers maximum medical centers and diseases at competitive
premiums.
Following link from IRDAI (Insurance Regulatory Development Authority of
India) provides important dos and don’ts regarding buying a health insurance:
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