Imagine this: You and your family are healthy, and your company covers you with a corporate health plan. You even have a separate health insurance policy, paying ₹20,000-₹25,000 every year—but you’ve never claimed a rupee. Feels like a waste, right?
Your friend has a different idea. 💡 He’s saving ₹10,000 a month in a medical fund. “Why pay an insurance company? I’ll just save for myself and use this fund in case of hospitalization!” he says.
And honestly… it sounds smart. After all:
💸 Wouldn’t you rather keep control of your money?
📊 In 5 years, saving ₹10,000 a month adds up to ₹8 lakh—why pay premiums year after year when you’ve never made a claim?
The Illusion of Control
Many people feel confident that because they’re healthy today, they won’t need hospitalization tomorrow. Many believe they can take care of medical expenses by saving in a dedicated fund. But things don’t always go as planned.
Medical emergencies strike without warning—and they won’t wait for your fund to grow. A severe accident can cost ₹5-7 lakh, and major illnesses could burn through ₹20 lakh or more. Will your fund be big enough when you need it most?
A Story from the Mahabharata: The Wisdom of Being Prepared
During their exile, the Pandavas faced many hardships. One day, unexpected guests arrived, but there was no food to offer.
Desperate, Draupadi prayed to the Sun God for help. He gifted her the Akshayapatra, a magical vessel that never ran out of food. No matter how much was taken, it refilled itself, ensuring every guest was fed.
Health insurance works the same way. Unlike a savings fund that depletes when used, a health insurance policy refills every year. If you use it for a major hospitalization, the sum insured resets upon renewal, ensuring continuous protection.
The Numbers That Matter
Say you save ₹10,000 per month, totaling ₹1.2 lakh per year. At 12% annual returns, you accumulate ₹8 lakh in 5 years.
Then, out of nowhere, you need ₹10 lakh for an urgent hospitalization.
✅ Your fund covers ₹8 lakh, but you’re ₹2 lakh short. What do you do?
❌ Break your long-term investments at a loss?
❌ Take a high-interest loan?
❌ Ask friends or family for help?
With no funds left, how would you handle another medical emergency?
Here’s the harsh truth: you can’t predict when a medical emergency will strike.
- What if it happens next year, when your fund is too small to cover even a basic hospitalization?
- What if multiple family members fall sick at the same time?
- What if medical costs are far higher than you expected?
Your fund takes years to build, but medical emergencies happen in an instant.
Meanwhile, a ₹25 lakh health insurance policy would cover these costs, protecting your savings and ensuring peace of mind.
Health Insurance is Actually Cheaper
Let’s say you are 35 years old, with a family of four, and need a ₹25 lakh cover:
- The annual premium is around ₹25,000-₹30,000.
- If you tried to build a ₹25 lakh fund in 5 years, you’d need to invest ₹32,500 per month at a 10% return—approximately ₹3.9 lakh per year.
- That’s about 14 times the cost of health insurance!
And here’s the reality—medical costs have been rising rapidly. For example, the average cost of a heart-related claim has nearly tripled in just a few years.
Addressing the Most Common Concerns
Many people hesitate to buy health insurance due to doubts and bad experiences. Let’s bust some myths:
🔹 Will my claim be rejected?
👉 Full disclosure = fewer problems. If you share accurate medical details and meet policy conditions, your claim will be paid. Most rejections happen due to hidden pre-existing conditions or waiting periods.
🔹 What if insurers reject my claim?
👉 The 5-year moratorium rule ensures that after 5 years, insurers can’t deny claims for pre-existing conditions.
🔹 Aren’t there too many terms and conditions?
👉 Yes, but once you complete the initial waiting periods (2-4 years), your policy becomes a powerful safety net for life.
Final Verdict: A Fund is Useful, But Not a Replacement
A medical fund helps with small bills, but it cannot replace health insurance. Insurance ensures that no matter how big the emergency, your finances are protected—without having to start over.
Would You Take the Risk?
Imagine standing at a hospital counter, facing a ₹20 – 25 lakh bill. Years of savings—wiped out in a moment. Wouldn’t it be better to let your insurer handle that bill while you focus on what truly matters—your health and family?
💡 Not sure how to choose the right health insurance? I can help. Send me a message, or book a free consultation here: https://calendly.com/ravinagrani
