COVID-19 pandemic: how to manage health insurance and emergency funds?


The COVID-19 pandemic has taught individuals the need for health insurance as well as emergency funds. There have been several instances in which people have faced problems due to the lack of these important personal financial assets.

According to Abhinav Angirish, founder of, health insurance just over a year ago was seen as an unnecessary expense. However, today the situation is different.

“But having health insurance is not enough,” he stresses.

In this pandemic, health insurance has some exclusions. For example, nebulizer kits, steam inhalers, thermometers or disinfectants are not covered by health insurance.

Also, as Angirish points out, there are reports that policyholders only receive 50-55% of claims.

That said, it is important that clients consider the extent of coverage and weigh the balance between premiums paid and plan benefits.

Also read: Here is the amount of health and life insurance coverage you should purchase

“If an individual is employed, he / she would be covered by group health insurance, but even then the coverage would be limited to Rs 3-4 lakh. It is important to cover the parents too, but the basic policy doesn “It’s not cheap. Even if people manage to pay high premiums, the coverage won’t be enough. So it makes sense to buy super supplemental plans that are relatively cheap,” he explains.

Speaking of emergency funds, Angirish says this is often the most overlooked aspect of personal finance.

“In the wake of the COVID-19 crisis, however, this is gaining in importance. While building up emergency funds, people often ignore liquidity factors. While bank deposits can be safe, they don’t “offer no liquidity. One can park their emergency funds in liquid funds which are also Besides liquidity, one can also obtain decent returns which can be reinvested in the corpus,” he suggests.

For emergency funds, it is always recommended to set aside funds that can help a person with 6 months of overall expenses. With access to these funds, any individual can go through income-impacting events like job loss or pay cuts or unforeseen expenses like hospitalization when every essential medical item appears to be in short supply and that false elements are trying to take advantage of it.

Additionally, if one is confused about health insurance or investing in liquid funds, they should consult their financial advisor.

Warning: The opinions and investment advice expressed by the investment experts on are theirs and not those of the website or its management. advises users to check with certified experts before making any investment decisions.


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