Health Insurance – Will you be covered when it matters most?
When it comes to future planning, few things are as unpredictable and potentially overwhelming as medical expenses.
We often take comfort in the size of our health insurance coverage, believing it will shield us from financial shocks.
My recent experience
Today, I am recounting my personal experience, which made me question my own ₹30lacs family floater with bonus & top up to boost.
My 76 year old mother had a bad fall at home recently breaking a bone in her leg. It required surgery. Her age and health condition made it necessary for a weeklong stay.
Total cost at a decent hospital in Thane – ₹2.5 lacs.
Why Current Cover may be insufficient
This incident has got me thinking about medical costs 10-15-20 years forward.
Do you know medical inflation in India is 14%? ie cost will double every 5 years
To put in numbers:
2025 – ₹2.5 lacs
2030 – ₹5 Lacs
2035 – ₹10 Lacs
2040 – ₹20lacs
Some might argue medical inflation will probably not rise at 14%.
But when it comes to planning for your future, the recommended approach is, be aggressive on your cost assumption and be conservative on your income / return assumptions.
Challenges with upgrading current Health Cover as one ages
The question I am asking myself, will ₹30lacs cover suffice 15-20 years from now? One line of thought is we can continue increasing health cover progressively, but that is not going to be easy.
Premiums are determined by age, health condition & your history with the Insurance company. Lifestyle diseases are widely prevalent and if contracted, will make it difficult to increase cover or will come with higher costs, exclusions / waiting periods.
What should be one do?
It is advisable to choose comprehensive medical insurance plan (with significant coverage amount) and ensure it’s reviewed periodically.
Consider building a Healthcare Fund to meet any contingencies, leveraging Critical Cover Plans & Top Up / Riders for extra protection without proportional increase in premiums.
To Summarise
As medical advancements accelerate, life spans will increase, treatments that were once out of reach may become standard, but at significant costs. Factor in the possibility of new diseases, evolving healthcare needs, and inflation-driven price hikes for everything from diagnostics to post-operative care, and it’s clear that underestimating future health expenses can be risky.
The last thing you want is your retirement kitty being dented / eroded by hospitalization bill.
