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Why health insurance cover is a necessity today

Nitin Vyakaranam of explains on why health insurance is a necessity in today's times. He stresses on the fact that not only does it provide risk coverage in medical emergency, if not taken, it can also prove to be a ajor personal financial slip up.

April 24, 2019 / 07:41 PM IST

Nitin Vyakaranam

Health Insurance provides risk coverage against expenditure caused by any unforeseen medical emergencies. In today’s high medical inflation rates, failing to hold adequate amount of health insurance cover can often prove to be a major personal financial slip-up.

Also read: Provisions in mediclaim policies you must know

It can either result in poor health care because of non-affordability or spiral an individual into financial distress due to high medical bills. Currently, majority of the salaried professionals are provided a health insurance cover by their respective organizations.

However, they often fail to assess their health insurance requirements and realize the benefits of holding adequate health insurance. They also assume that the health insurance cover provided by their organization will be available even during the post retirement phase.


There are two common mistake areas when it comes to buying life insurance and health insurance. One, people don’t act at the right time. Two, when they realize that they have done a mistake they try to over compensate it by buying too much Insurance.

Always remember this popular saying about insurance:

"Buy health insurance when you don’t want it, you may not get it when you want it."

So why one should buy Health Insurance, even if it is provided by their organization:

• Buying a medical cover in early life would ensure that the cover is comprehensive while one is employed and continues when they choose to retire.

• Buying a personal Health Insurance policy when one is young and free from medical complications would be a cost efficient option. The premium would be lower and would offer comprehensive coverage in comparison to a policy purchased at later stage once they face any medical/health issues.

• As an individual grows older, the cost of the cover increases and if one develops health issues, the health insurance company tends to exclude pre existing conditions which defeat the whole purpose of buying a health insurance.

• Most health insurance companies have an upper age limit for the policies, which means one would have limited options after retirement.

• One can enjoy the benefits of cumulative bonus in the form of ‘No Claim Benefit’ if they renew the policy without any claims.

• The icing on the cake is the health insurance tax benefit. On the other hand, it should not be the driving force behind making the decision of taking a health insurance policy.

One should scientifically calculate the amount of health insurance required with the help of a proficient financial advisor.

The author is the founder and CEO of

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first published: Jul 31, 2013 06:24 pm
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