46% of Indians do not have a three-month emergency fund, while 60% have family health coverage of less than ₹2.5 million. Find out what the report reveals.
Health Insurance India: Family Health Insurance News
Despite earning and investing, most Indian families are ill-prepared for emergency expenses. According to a survey report, 46 percent lack emergency funds to cover even three months' worth of expenses. Meanwhile, 60 percent have health insurance coverage of less than ₹2.5 million for their entire family.
This report by Finovate Financial Services looks at various aspects like savings, loans, tax planning, investments and family security.
How many people don't have an emergency fund?
An emergency fund is a sum of money that can be used in the event of job loss, unexpected medical expenses, or urgent family needs. In the survey, 46 percent of respondents reported that they either don't have enough money to cover three months' worth of expenses or have no emergency fund at all.
In such a situation, a sudden income loss or a major expense can put pressure on the household budget. The appropriate amount for an emergency fund varies from family to family, depending on your income, EMIs, family responsibilities, and job.
60% of people have health cover less than Rs 25 lakh
The report also revealed a significant gap in health insurance coverage. According to the survey, 60 percent of respondents have a family health insurance cover of less than ₹2.5 million.
Hospital costs are rising rapidly these days. Simply having insurance isn't enough; it's also important to ensure your policy is sufficient to cover major medical expenses.
Do you have health insurance or not?
The survey revealed that approximately 43 percent of respondents have both company-provided and self-imposed health insurance. Meanwhile, 14 percent rely solely on their employer's health coverage. Additionally, 14 percent reported having no health insurance at all.
Company policies are job-related. This coverage doesn't necessarily continue after you change jobs or retire. Therefore, it's important to have separate health insurance tailored to your needs.
Why is the concern growing?
According to media reports, medical inflation in India is estimated to be around 11-14 percent, while inflation is estimated to be around 6-7 percent.
This means that the health cover that seems sufficient today may fall short in the coming year.
The report also revealed the debt situation of people who are burdened with EMIs
. 57% of respondents reported having some form of EMI.
Of these, 21 percent people spend 20 to 40 percent of their income on EMI, while 9 percent people spend more than 40 percent of their income on EMI.
