Why should Salaried Look at a Health Cover?

The employment situation in India is very grim. As per the last survey was done by the National Sample Survey Office (NSSO) in 2011-12, it was revealed that out of a total of approximately 48 crores working population of the country; almost 25 crores were employed in industry and services sector. Also, out of the total workforce, 82.7% are in the unorganized sector. The unorganized sector is known for not giving adequate employee benefits, so if you are working in that sector, the chances of you being covered under a health care plan are very low! Even if you are provided with a health cover by your employer, is it enough for you and family?

Factors of health insurance for salaried Person

We look at various factors as to why a health insurance plan is an absolute must for you if you are salaried:

1. Rising Costs of Medical Care

Against the regular inflation in the economy of 5-6%, the medical inflation is racing ahead at a pace of 12-15% per annum. The cost of medical care is rising by the day, and the government sponsored medical infrastructure is crumbling with the rising population. Hence, there is a need for private medical care where getting treatment is beyond the means of an average citizen.

2. Limited Growth in Salaries

The average increase in salaries in the organized sector is to the tune of 8-10%, which after adjusting inflation and other economic factors comes down to a mere 4-5%. Here we are not even talking about the unorganised sector, which doesn’t follow any norms about salary increases. With such gloomy scenario about salaries, how can you manage health care costs for you and your family without health insurance plans for family?

3. Financial Setbacks due to Medical Emergencies

Health is unpredictable, no matter how careful one is. Any medical emergency in the family can lead to enormous financial liabilities that an individual with limited means of earnings can find extremely challenging to take care of. Many Indian families are known to be pushed into poverty simply because they are unable to arrange sufficient funds for the medical treatment of their loved ones. They resort to borrowing, selling assets and moving cities, resulting in financial hardships. Health policies can take care of such contingencies in a major way.

4. Employer’s Coverage Not Enough

It’s a lazy thought to rely on employer-provided health coverage. It has various limitations like:

  • Has a limited health care cover that might be insufficient for the needs of your family
  • Many employers either don’t cover aging parents or provide a limited cover
  • Group insurance policies are set to become costlier in coming years due to rising costs and might also stop paying out discounts
  • There is no health coverage post-retirement and buying a new health plan at that stage is very complicated and expensive affair

5. Individual Plan is a Must

Without customized health insurance plans for family, it is not possible to take care of all sorts of health expenses that you may witness. This includes taking care of wife’s pregnancy, aging parents’ health and other unforeseen medical needs of the family. A separate plan, different from what your employer has provided for, will ensure you are covered for emergencies and have sufficient finances to pay hospital bills and yet avoid coming under severe debt.

The salaried class is the most vulnerable class that gets affected by every minor or major change in the economy and health expenses can turn the life completely upside down! It is better safe than to be sorry. Therefore, it is important to invest in either individual health plan or family health policies to safeguard your near and dear ones against any medical calamity.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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