Chennai , September 10, 2026: For millions of Indian families, a single serious illness can wipe out
years of savings. While close to half of India’s population is now covered under a health insurance or
financing scheme, many families continue to remain underinsured, with coverage often falling short
of the cost for medical treatment of a serious illness. Care Health Insurance urges families to view
health insurance as an essential tool that secures them against financial impact of medical
emergencies.
For many Indians, health insurance is purchased once and rarely reviewed, or is limited to an
employer-sponsored group policy. Meanwhile, medical costs continue to rise much faster than most
incomes and can quickly outpace the coverage available under existing policies. A policy of ₹2–5 lakh
that once seemed adequate can now be exhausted well before treatment for a serious illness is
complete. When cover runs out, families often withdraw savings, sell assets or take on debt, turning
a health crisis into a long-term financial burden.
These consequences, in fact, extend beyond individual households. High out-of-pocket healthcare
expenditure remains one of the leading causes of financial distress in India, making wider health
insurance coverage essential to strengthening household resilience and advancing India’s goal of
Universal Health Coverage.
Care Health Insurance recommends to strengthen financial security against rising healthcare costs,
Review your health insurance every year and ensure your sum insured reflects your family’s
healthcare needs, city of residence and current medical treatment costs. A sum insured that seemed
adequate a few years ago may no longer cover today’s treatment costs.
Adequate health insurance is no longer a discretionary purchase but an essential pillar of financial
planning. Reviewing health insurance regularly and ensuring adequate cover can help families
protect their savings, avoid financial distress during medical emergencies and build greater financial
resilience.
