Zerodha’s Nithin Kamath says health insurance ‘most important financial investment’ for family; here’s why 

Founder and CEO of the online brokerage firm Zerodha, Nithin Kamath, has said that he considers buying a health insurance plan as the most important financial investment one can make for their family. Taking to Twitter, Kamath pointed out that he believes one should make this investment even before starting their financial journey. The Zerodha CEO said that the average cost of in-patient care per hospitalisation was Rs 26,475 in urban areas and Rs 16,676 in rural areas as of 2014, the last year for which data is available. 

He also noted citing government estimates that over 6.3 crore Indians face poverty every year due to health costs. Kamath further said, “About 8-9 per cent of all Indian households were pushed below the poverty line due to healthcare costs, as per this paper by economists from the National Institute of Public Finance and Policy based on NSO data.”

Kamath said towards the end of his Twitter thread that healthcare costs will continue to surge and the only way to deal with this reality is to create awareness about health insurance in Indian households. “Healthcare costs will continue to rise, and the only way to deal with the impact is by creating awareness about the need for health insurance for all Indian households.”

What you need to know before buying health insurance: 

While Kamath recommended buying health insurance for oneself and their family, here’s what people need to factor in while buying one:

One should prefer buying health insurance at a younger age so that they are able to skip the waiting period. This way, you can also get higher coverage at a lesser premium since you fall in the higher immunity bracket. 

Young couples should also factor in maternity benefits before opting for health insurance. They should go for a plan that provides coverage against normal and C-section deliveries and also covers new-born baby expenses. 

Knowing the insurance company’s claim settlement ratio is recommended.

Some plans also offer discounts and/or other attractive benefits on health check-ups.

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