Is Health Insurance Really Too Expensive? Debunking a Common Myth

Posted on: Jun 4, 2025 | 3 mins | Written by: HDFC ERGO Team

Is Health Insurance Really Too Expensive? Debunking a Common Myth

In today’s fast-paced world, it’s easy to brush off health insurance as just another expense—one that feels avoidable until life proves otherwise. Among the most common assumptions that prevent people from investing in health coverage is this: “Health insurance is too expensive for most people”. It sounds logical on the surface, especially when monthly budgets already feel stretched. Well, is it really true?

Let’s take a closer look at this myth and understand why dismissing health insurance on the basis of cost could end up being far costlier in the long run.

Understanding the Root of the Myth

It’s human nature to weigh visible, immediate expenses more heavily than potential future ones. A health insurance premium may feel like money going out of your pocket every month or year without any immediate return. But this perception often ignores the very real risk of sudden medical emergencies—situations that can wipe out savings in a single blow.

This myth is further strengthened by the assumption that health insurance policies are designed only for the affluent. The reality, however, is far more inclusive. Over the years, the Indian insurance landscape has undergone a dramatic transformation, offering diverse options tailored for different income levels, age groups, and healthcare needs.

Affordable Spectrum of Health Insurance Policies

Contrary to popular belief, health insurance doesn’t come in a one-size-fits-all model. Today, insurance providers offer health insurance policies starting from as low as ₹500 per month, depending on the coverage and features. There are basic plans specifically curated to provide essential protection without putting undue pressure on your finances. In fact, many insurers even offer micro-insurance plans, which are targeted at low-income households and rural communities, ensuring that even the most vulnerable groups are not left out.

Moreover, family floater plans—where one policy covers multiple members of a household—can provide comprehensive coverage at a relatively lower cost per person, making them highly economical.

The Bigger Picture: Cost vs. Consequence

It’s worth pausing for a moment to consider what the real cost of skipping health insurance might be. A brief hospital stay, a surgery, or treatment for chronic illness like diabetes or hypertension can run into tens of thousands—or even lakhs of rupees. Add to that the indirect costs of time lost from work and ongoing medical care, and it becomes clear that the actual cost of being uninsured can far outweigh the premium you’d pay for protection.

In essence, health insurance transforms unpredictable, large-scale health expenses into manageable, regular ones. It acts as a buffer—financially and emotionally—allowing you to focus on recovery rather than worrying about expenses.

Unlocking Extra Value: More Than Just Hospital Cover

Another misconception that fuels the “too expensive” myth is that health insurance only helps during hospitalisation. But modern health insurance policies often include a range of value-added benefits. These can include free annual health check-ups, wellness rewards, teleconsultations, and even discounts on medicines or fitness memberships.

Some insurers also reward healthy behaviours with reduced premiums or increased coverage over time. So, rather than being just an expense, your health insurance plan could serve as a motivator to maintain a healthier lifestyle.

Tailoring Plans to Fit Your Budget

One of the biggest advantages of the evolving insurance ecosystem is customisation. Don’t want maternity cover? You can skip it. Need coverage for critical illness? Consider including it as an add-on. The modular nature of health insurance policies today ensures that you only pay for what you need.

If affordability is still a concern, premium payment flexibility also comes into play. Many insurers offer options to pay premiums monthly, quarterly, or half-yearly, instead of an annual lump sum. This makes managing costs much more feasible.

A Smart Investment, Not an Expense

Think of health insurance not as a financial burden, but as a safety net—one that can protect your hard-earned savings, secure your family’s future, and offer peace of mind.

And when you compare the cost of premiums with the potential cost of treatment, it’s clear that the “too expensive” label doesn’t hold up.

Conclusion

The idea that health insurance is out of reach for most people is not only outdated—it’s misleading. Today, a wide variety of health insurance policies are available to suit every pocket, offering essential coverage, customisation, and long-term value.

So, the next time someone says, “I can’t afford health insurance,” it might be worth asking instead, “Can you afford not to have it?”

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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