Insurance is the most economical method to manage risk. We are not sure of what our health status will be next year and who in our family might be the next person to get hospitalised.

Health insurance brings certainty of payment for our hospitalisation expenses while there is uncertainty on when and for what ailment we might need to get hospitalised.

A person, who hasn’t made a claim for several years, may feel that investing the money would have been better, but health insurance provides peace of mind. While it might take several years for investing and creating a good medical corpus, health plans provide a bigger funding instantly from the day you buy.

Steven Fernandes, chief executive officer, Proficient Financial Planners