Key idea
Of all the covers you can hold, this is the one almost nobody should go without. A single hospitalisation is the fastest way an ordinary family loses its savings.
Medical costs in India have risen faster than almost anything else, and a serious illness or accident can produce a bill running into several lakhs with little warning. Health insurance exists so that a medical emergency does not become a financial one.
Why it sits at the top
Unlike most risks, a health event is both common and expensive. Over a long enough period, a family is very likely to face at least one significant hospitalisation. Without cover, that bill comes straight out of savings, or worse, out of borrowed money at high interest.
Common
most families face one
Large
lakhs, not thousands
Covered
the insurer pays
The quiet second benefit
Beyond the payout, having cover changes behaviour: insured people seek treatment sooner, because the cost is not stopping them. That can matter as much as the money. And under the old tax regime, the premium is deductible under Section 80D, though the protection is the real reason to hold it.
Finished reading?
Marking this complete counts today, and your streak becomes day 1.