Why Health Insurance Matters More Today
Nearly half of health insurance buyers in India say they bought a policy mainly to protect themselves from rising medical expenses, reflecting growing awareness of how unpredictable hospital bills can be.
Healthcare costs in India are expected to keep rising, with medical plan costs projected to increase by around 11.5 per cent in 2026, higher than the global average, and driven by factors like advanced treatments and chronic diseases.
At the same time, regulators are taking steps to control costs and improve transparency, including plans to tighten oversight of the health insurance claims system to curb inflated treatment charges.
In smaller Indian cities, premiums have increased dramatically over recent years, rising as much as 73 per cent since 2020 as healthcare infrastructure improves and medical inflation continues.
All of this means that relying only on savings for a medical emergency can be risky, and having the right health cover is a crucial part of financial planning.
Medical emergencies don’t just affect your health; they can shake your savings too, especially in a country like India, where healthcare costs and insurance premiums are rising steadily. In fact, total health insurance premiums collected in India crossed ₹1 lakh crore in the first 10 months of FY25, up about 10 per cent from the year before, showing strong growth but also rising costs for policyholders.
Global Trends: Rising Costs Everywhere
The pressure on health insurance is not unique to India. In the UK, private health insurance claims have hit record levels as NHS backlogs push demand for private care and costs rise for employers and individuals alike.
In the United States, health insurance premiums under the Affordable Care Act are projected to see significant increases, reflecting broader global trends where medical costs, new technologies, and policy shifts push up prices for coverage.
These global patterns show that healthcare costs are rising not just here, but in developed economies too, making health insurance an increasingly important financial safety net.
Choosing the Right Cover
Not all health insurance plans are the same. Too little coverage can leave gaps when you need care most, while paying for unnecessary features can waste money. A well-designed plan balances affordability, adequate hospital network access, and benefits that match your lifestyle and health risks.
Starting early helps in several ways, including generally lower premiums when you’re younger, more time to meet waiting periods, and uninterrupted coverage when you need it.
In a Nutshell
Health insurance protects your savings and future goals from unexpected medical costs. With rising healthcare expenses in India and around the world, choosing the right cover is one of the most practical financial decisions you can make today. Contact NK Investments for a customised plan that will cover your risks just right.
Leave a Reply