A prospect recently asked me this during a preliminary discussion –
What if I do not buy health insurance and save money on paying premiums? Instead, I build my own medical fund.
So, I asked her a few questions.
- Will you have the discipline to contribute to the medical fund regularly just like one has to pay insurance premium annually?
- Will you have the discipline to not use the fund for any leisure or aspirational purposes?
- Will you be able to replenish it quickly once utilised post hospitalization?
- Will you be willing to contribute more to the medical kitty with rising health care inflation?
She found her answers in the questions asked.
To conclude, a medical fund can be a great supplement to your health insurance cover, but not a replacement. Consider health insurance as your mandatory expense, just like you pay your household & utility bills. Do not compromise on it.