Health insurance vs Personal Medical Fund

A prospect recently asked me this during a preliminary discussion –

What if I do not buy health insurance and save money on paying premiums? Instead, I build my own medical fund.

So, I asked her a few questions.

• Will you have the discipline to contribute to the medical fund regularly just like one has to pay insurance premium annually?

• Will you have the discipline to not use the fund for any leisure or aspirational purposes?

• Will you be able to replenish it quickly once utilised post hospitalization?

• Will you be willing to contribute more to the medical kitty with rising health care inflation?

She found her answers in the questions asked.

To conclude, a medical fund can be a great supplement to your health insurance cover, but not a replacement. Consider health insurance as your mandatory expense, just like you pay your household & utility bills. Do not compromise on it.