Health insurance comes in handy
Nazmul Ahsan, 36, works at a bank in Dhaka as the head of the treasury. He took up health insurance at the age of 29 as a part of his financial planning.
Another factor that prompted him to open the policy was the health expenditure in Bangladesh being very high compared to other countries. Besides, out-of-pocket expenditures account for more than two-thirds of the total health expenditure.
In 2018, the out-of-pocket expenditure, the payments spent on health directly by households, was 73.9 per cent of the health expenses for Bangladesh, up from 61 per cent in 2000, data from the World Bank showed.
"If job-holders like me suffer from a major disease, it is tough to bear the cost alone. If you are sick and you get support from the insurer, it will be helpful for you, although the amount is not always sufficient," Ahsan said.
"But the health insurance is beneficial for you and your family during any emergencies."
Not all people think in the same way.
"There is an attitude among the people of our country that I will be able to tackle the situation.
But when one member of a family falls ill seriously, the whole family is in danger," said Ahsan.
He thinks people should avail themselves of health insurance when they are young as the premium would be lower than those who open policies at a much older age.
Ahsan has opened two policies: one for hospitalisation and the other for accidents. The policy on hospitalisation covers several major diseases.
"First of all, you get health protection as a result of buying an insurance policy. At the same time, your savings are also growing."
The lower interest rate offered by banks also makes health insurance attractive.
"If you look at it from the viewpoint of long-term deposits kept with banks, you will be doubly benefitted," said Hasina Sheykh, a professor of the banking and insurance department under the University of Dhaka.
If policyholders do not encounter any loss, a situation anyone will be comfortable with, they will still benefit at the end of the maturity period.
"When it comes to investment, it is a smart choice," she added.
Prof Md Main Uddin, chairman of the banking and insurance department at the University of Dhaka, said insurance could not be directly compared with the money saved at banks, invested in the stock market, and used to buy land and other properties.
"It is a kind of investment where you are putting your money in insurance. In this sense, you are getting health coverage, and you will get back an amount of money when the policy matures."
Saifur Rahman, head of communications of MetLife Bangladesh, one of the leading life insurance companies in Bangladesh, said the policy should be bought depending on the flow of income.
Many a time, people cannot continue policies because of financial trouble.
"People will have to keep in mind the financial condition while subscribing to a policy because you have to continue it for a long period," Rahman said.
If someone discontinues a policy before maturity, the money deposited is returned after deducting a portion as per the rules of the insurers.
Rahman advised potential customers to know well about the financial capability of insurers whether they can meet the insurance claim.
Currently, there are 78 insurance companies in Bangladesh. Of them, 32 are life insurers and 46 non-life insurers. But there is not much in terms of product diversity.
Shubasish Barua, head of impact business at Green Delta Insurance Company, said interest in health insurance had grown since the coronavirus pandemic hit the country in March last year.
"The number of clients in our company has increased by 15 per cent. Our clients in the corporate segment have grown. There is also a demand for individual health insurance. But that is not significant," he said.