Mathematics & Importance of Health Insurance

April 19, 2021

Health insurance is an absolute necessity of the present times. As the medical expenses reach the skies' height, the ordinary person is in a trap of debts. An average unexpected health encounter in any form, like an accident to natural disease, can empty our pockets in no time, putting everything in jeopardy in no time.

I am yet to meet an insurance agent who is service-minded and well versed with convincing abilities and simple mathematics of the trade. Most of them have only one agenda: their income from the commission generated by selling policies. That takes them to the situation of pleading at times rather than convincing. This is happening for a while with no change in their approach despite meeting potential clients for years. Their commission is the only agenda; rest everything takes a back seat, including the convincing explanation.

The end result of all this limited mindset approach is they end up neglecting the poor to whom the health insurance facilities should have reached, reaching only the cream of the rich's society.

Most of the economically weak people think that health insurance is for the financially stronger people. Interestingly it is otherwise. A rich person can afford medical specialties anyhow, but it is not so for a weaker section of society.

Health insurance is for financially weak people. Let us understand this. People with financial challenges should opt for family or individual health insurance.

Let us take an instance of an accident that is average in nature which requires a 10-day hospital stay. The minimum expenditure will be 2 lac. If the damage is considerable, the expenses will rise further. All this is the cost of a second's negligence/disaster that comes without warning.

When we know anything may happen anytime, our primary task is to be prepared to face any eventuality. In the vast majority of cases, this is not the reality. They are not prepared since no one is there to guide them. This preparedness comes at a negligible cost. They run helter-skelter looking for help that is difficult to arrive only after a disaster. Borrowing is the only option that will ruin the total stability of the lower-income group. 

Having health insurance for at least 5 lac for the family or individually gives you great relief. Many falter at this point, thinking if a situation comes of no claim, the money is wasted. Not the other way that they have sound health / didn't have to face any disaster. This is the common man's psychology in most daily life events that prevent them from growing and doing well in life. 

Let us understand the simple mathematics of health insurance. If we are paying a yearly payment of Rs 15,000/- for the family /individual, for a sum assured 5 lacs that comes to Rs.1250 /- per month; Rs 40 /- day. Just the price of two cups of Tea at an ordinary hotel. The point here is that 40/- a day or 1250/- a month completely secures your family's health problems of any nature anytime inside India. I suppose there is no claim over a while; the no-claim bonus generated will help grow your premium sum assured further, which will help you cover severe ill-health like bypass surgery/organ failure. 

The point to be noted is, this premium sum insurance facility is available every year if you do not stop paying yearly installments. That says for a payment of just annual Rs 15,000/-annually or 1240/- monthly or 40/-daily, you are securing your family's health for years to come. Every year you are eligible for the premium sum assured. Many people think it is to be availed in a lifetime. 

If you are too rigid in thinking and feel that by not inviting a health emergency to claim the money, thank god for the good fortune you have, rather than worrying about the installment paid!! At least one family member may meet any medical condition that requires hospitalization at the present time. If anyone in the family encounters a situation wherein he/she needs to claim the insurance, all the installments paid would be recovered.

To understand the severity of the medical expenses, meet a person with an accident, a person with bypass surgery or any heart-related ailments, or a covid 19 treatment expenses.

Health insurance is a necessary evil of the present time, if it is evil at all. Life insurance should take the second priority in front of the necessity of health insurance. Understand this.

To summarize, by paying a sum of Rs. 40/- a day, you have health insurance of 5 lac/- a day if disaster struck! Actually, you have Rs 5 lac at your disposal purchased at Rs 40/- only! An amount for which you don't have any interest to pay or repay at all. Is this not a great facility to be availed by everyone? An economically weaker section person will be helpless in front of the substantial medical burden. Therefore I said the weaker section of the people should have health insurance. Health insurance is also essential considering the degradation of intensity in family bonding as well as general relationships.

The health insurance benefits can be availed anywhere in India (PAN India presence) once you start paying the installments. It is cashless. Also the premium paid has income tax exemption benefits under section 80D. 

Health insurance first instead of life insurance. This is the necessity of the heavily polluted physical environment around us. The current trend is just opposite. Have health insurance done as early as age 35 or before that so that when your body parts start deteriorating at 40, you will have a good amount of money at your disposal at minimum expenses. If you delay, as age increases the instalments sum to be paid increases with aging. I suggest every person who drives on Indian roads should have health insurance done along with a driving license. When you make health insurance, make sure that there is no capping. No capping means the insurance company bears all the money. There are some schemes in which an 80; 20 ratio available in which the patient pays 20%. Generally, to trap the client, agent and companies hide this truth. So make sure and take all precautions when you go for health insurance.

This article is influenced by many experiences I witnessed personally. Our limited mindset is not a one-time barrier in life. It prevents every positive thinking at every step in life. An average person remains so because of the quality of these thoughts rather than anything else. Having no health insurance could be disastrous in your life.

When I read the news for the request to help in many forums, including daijiworld, I assume that these people may be unaware of these facilities. Their plight should be a lesson for all of us to have health insurance in time. Kindly learn from such incidents.

I wish whoever reads this article takes this message to the layman's doorstep and helps them live with peace. This is a good service you are doing to your fellow neighbor in society.





By Vincent D'Sa
Vincent D'Sa is from Pangala parish (Shankerpura), Udupi dist, currently residing in Muscat, Oman. He is an NLP Master Trainer, counselor and corporate trainer, and runs a training and counseling center for Mangalorean students in Muscat to achieve academic excellence through NLP Techniques.
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Comment on this article

  • Lawrence, Karkala

    Wed, May 19 2021

    Dear Vincy, Very good massage. Health insurance is very important now. Please advise readers if you know good health insurance co. in India.

  • Mahesh, Bahrain

    Tue, Apr 20 2021

    Nice article. Good message. Wonderfully written and explained.


    Tue, Apr 20 2021

    Dear Vincent Thanks for enlightening us once again with very important information. You are doing a great service to the entire humanity. Thanks. Regards!

  • Richard, Abu Dhabi

    Tue, Apr 20 2021

    Extremely beneficial message for society. Good work, Vincent. I regularly read your articles, though I don't comment periodically. The topics you chose always carry a letter to the community. God bless.


    Tue, Apr 20 2021

    Dear Vincy, Very important message very well communicated. Health Insurance is the need of hour today primarily because Misfortunes and Uncertainties do not arrive at a pre-requisite time. Further the fast-paced life nowadays has escalated the possibilities of sickness, prolonged diseases, and high-stress levels causing many heart-related ailments. Good Luck. Keep Writing!!!

  • Melvin, Muscat

    Tue, Apr 20 2021

    Very informative and apt article. I was in confusion for the last two years. Five minutes of reading this article solved all my messes. Thank you, Vincent. A valuable piece to the entire society.

  • Jha, Sharjah, UAE

    Mon, Apr 19 2021

    Timely relevant topic! As we believe, health is wealth, we are all aware that we are not always in a good shape.. considering the above advise will help us prepare and lessen our future worries. Keep on writing Uncle Vincent!! 👌💯😉

  • Jossy Rodrigues, Urwa/Sharjah

    Mon, Apr 19 2021

    Vincent's article as usual is crisp, apt, informative, to the point and hits the core! Middle class & lower middle class people should not only read but practice this valuable advise.

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