When we say "I want health insurance," we are in fact talking about a set of several components that do different jobs. This article separates out the pieces, shows what each is for and who it suits, so you can assemble your own set deliberately rather than buying a package someone else put together.
Piece 1: Inpatient (IPD) — the core everyone should have
Cover for hospital admission is the piece that takes on the "severe but infrequent" risk, which is insurance's main job. Room charges, surgery and large treatment costs all sit here. If the budget is so limited that only one piece is possible, this is the answer. Choose a limit and a room rate that match the hospital you actually intend to use.
Piece 2: Outpatient (OPD) — convenient, but think about value
Seeing a doctor without being admitted is a "light but frequent" expense, which in principle is cheaper to bear yourself than to transfer to an insurer. The OPD portion of the premium is therefore usually high relative to the limit you get. It suits people who genuinely see a doctor often, or who want complete peace of mind. For a generally healthy person, putting that budget into a larger IPD limit is usually better value.
Piece 3: Daily cash benefit — looking after income, not treatment costs
A fixed amount for each day in hospital, paid to you to use freely. This piece matters greatly for anyone whose income stops when they stop working — freelancers, traders, day labourers. For an employee with fully paid sick leave, the need is smaller. Choose according to the nature of your income.
Piece 4: Critical illness — a lump sum for the big battle
Paid as a lump sum when a condition covered by the terms is diagnosed. It does a different job from paying for treatment: it looks after the life that has to stop working during a long course of treatment — the lost income, the travel, the carer. It belongs as a second layer once IPD cover is solid, particularly for anyone with a family history or who is the household's main earner.
Piece 5: Accident (PA) — a small piece that closes a corner quickly
A low premium, cover from day one with no waiting period, covering medical costs from accidents and disability. It makes a good first piece for someone on a very small budget, or a supplement for anyone living with more exposure — travelling often, riding a motorcycle.
Assembling a set by profile (illustrative)
- Employee with group insurance: IPD with a deductible so the group scheme pays the first layer, plus critical illness. Light total premium, high ceiling.
- Freelancer with no benefits: full IPD + daily cash benefit + PA, closing both the treatment cost and the income.
- Healthy, limited budget: IPD at a suitable limit + PA, adding other pieces as income grows.
- Main earner aged 40+: IPD + critical illness at a higher sum, because the risk statistics start climbing.
These are starting ideas; the real answer depends on each person's benefits, budget and risks.
In short
Choosing health insurance well is a matter of assembling, not picking. Know the five pieces, understand what each does, and build the set around your own profile. The same budget buys cover that is far better targeted. If you would like help assembling yours, message us on LINE any time — no charge.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.