Is building health fund realistically possible?
Health insurance premiums are getting unaffordable even for masses who decided early in their lives to get themselves insured.
This is the biggest argument settling the debate of health insurance vs health fund. Sounds reasonable.
But even if we look at the other end of the debate, the health fund, at max, can also grow only 12-15% (with 100% exposure to equity, which shouldn't be the case provided liquidity) as against a medical inflation of 15-20%.
Now, if we are targeting to build such a fund, here are the stats that needs to be added to list of arguments -
- One'll need 2-3 years of contributions to build a 1 time usable corpus of 5-10L considering savings of 50%, all going towards this goal.
- One'll need to fund this goal every year with ~20% of their savings just to make it relevant for medical inflation.
- There is no way to refill this corpus once used without compromising on other goals.
The situation is worrying & overwhelming!
What can be a reliable & realistic solution to the above problem.
PS: Argument for super top-up is very well taken & looks good for now. However, I'm skeptic about it as well; coz with time if avg bill amount passes the threshold I expect it's premiums to shoot sky as well.