Medical Inflation – What you should know


Many of you may have a good health insurance.  For those who have and for those who don’t have, I would like the share the following information.
We all know that the average inflation is around 8% and sometimes it is higher and in the last one year or so, it is lower than 8 and is around 6%
While the inflation is at these levels, we still feel the pinch when it comes to funding the education of our children or medical inflation. I enclose with this a chart on medical inflation for the last five years.
The average medical inflation for the last five years is around 12.5% to 13%.  What does this mean to you?
Inline images 1
Let us assume that a heart bypass surgery cost 3 lacs today. At 12.5% inflation year on year, this will cost you 30 lacs in 20 years.
Even if the inflation is 10% it will cost you 20 lacs.
If you are 40 years of age and have a coverage of 5 lacs, this may be grossly inadequate when you really need it after 60, in case you need it.
If adequate cover is not taken, at 30 L medical cost, even if your policy gets 5 lacs bonus and you can cover 10 lacs, you have to find sources for 20 lacs and lose your savings and sell your assets.
Have the right medical insurance Policy
Have right amount of coverage
Have the right benefits in the policy.
As usual, I am there to help you find one.
Varadharajan VS

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