Sickness is inevitable. We are able to handle expenses for minor cases; however, we may face financial strain for critical sickness that needs admission to the hospital as the medical fee is high. Some people probably lose all their savings for one-time threatening sickness. Consequently, health insurance can be a factor to help us plan better for health care expenses.

Anyway, when we’re healthy and without any health problem, some people perceive that health insurance is like a “burden” as it’s a waste of money to pay insurance premiums because we won’t get our money back if we don’t make an insurance claim. Besides, the insurance premium is not stable every year but is highly adjusted by increased age. That’s why some people hesitate to apply for health insurance. Some people develop congenital diseases so they may not be able to buy health insurance. This brings a question of whether we would rather manage risks by investment than buying health insurance. This article comes with answers.

At first, let’s take a look at who is suitable for owning health insurance.

1. Healthy people with concerned about having risk to admit to the hospital due to their sickness or the family members in the past so they worry about the coming expenses. Also, when comparing the premium and insurance coverage, they consider it’s worth paying the insurance.

2. Entrepreneurs who work tremendously hard lead to personal health negligence such as, don’t eat punctually, going to bed at late night, and ignoring warning signs of disease. Besides, they don’t have health coverage protection like salarymen which is provided by their employers. Thus, buying health insurance sounds like good risk management.

3. People who need a tax deduction. Health insurance not only provides your health protection but also offers tax deduction at a maximum of 25,000 baht. Health insurance eligible for tax deduction must follow the following criteria:

• Insurance that covers medical treatment for cases derived from painfulness and injuries, disability compensation, and loss of organ due to sickness or injury.
• Critical illness insurance
• Long-Term Care

For people who realize that health insurance can cope with risk management and it’s a good value for money, they should study the conditions of insurance coverage and check their potential to pay its premium. Also, plan well for long-term premium as it’s risen with age; the premium is quite high at the age over 60. Therefore, we must consider arranging an investment port to pay additional insurance premiums in the future.

Those who want to take risks without applying for health insurance will need to set up an investment plan as fast as possible because good interest generates from a long-term investment. Additionally, that long-term investment will help reduce investment volatility.

We may start by shifting money planned for paying a premium to investment instead. Choosing investment depends on the different levels of risk tolerance and investment period. The investment plan will probably be challenging because we never know when we’ll get sick. If we just started creating an investment port and were suddenly admitted to the hospital, our savings might not be enough for medical fees. Suppose we experience investment loss or deficit and then we may need to sell the investment port at a loss in order to pay for the hospital fee. Therefore, that will possibly affect our other financial goals and status.

In that case, we can use our medical benefits rights, such as Gold Card or Social Security. These healthcare rights can ease our financial burden but the admission treatment won’t be convenient as we’re only allowed to go to assigned hospitals and to follow the service queue.