In an era when the cost of living climbs every year and salaries do not keep pace, many households start looking for expenses to cut — and the health insurance premium is often among the candidates. This article looks at the whole equation, because in a time when everything is expensive, medical care gets expensive faster than anything else, and an economic crisis has never waited for us to get well first.
The fact to start from: medical inflation runs ahead of general inflation
Ordinary prices move by a few percent a year, but medical costs worldwide, Thailand included, tend to rise at a consistently higher rate, driven by new medical technology, drug costs and an ageing society [check the latest information]. In plain terms: an operation that costs a few hundred thousand today will not cost that in ten years. Health planning is therefore not only about today — it is about locking in your future ability to access treatment.
The trap of cutting the premium when money is tight
The logic of "times are hard, let the insurance go for now" has a serious weakness: a period of economic difficulty is when a household is most fragile against a large expense. Reserves are thinner, debts tighter; a serious illness now brings the whole board down. Cancelling cover at that moment is like putting the umbrella away as the clouds gather. And if you come back to it later, changed age and health will make it more expensive — or impossible.
Strategy 1: Restructure instead of cancelling
A tight budget does not mean choosing between paying in full and dropping everything. There are several steps in between: move to a plan with a deductible if you have other benefits behind you — the premium falls substantially while the ceiling for a major case remains; reduce riders that matter least; change the payment frequency to suit your cash flow; or reduce limits that exceed what you need. The details of these tools are in our checklist article on reviewing insurance in a crisis.
Strategy 2: Use state entitlements as the base, intelligently
Universal coverage and social security are the most powerful budget tools in an expensive era. Use the state entitlement for ordinary illness and regular medication, and let private insurance handle only major cases or the convenience you genuinely need. Dividing the roles this way makes every baht of premium work where it counts most, rather than paying a high price for duplicated cover.
Strategy 3: The health budget needs a buffer of its own
Besides the premium, a household should keep a separate health reserve for what insurance does not cover: the room rate difference, things needed during recovery, or income lost while off work. Starting with a few hundred baht a month is fine, as long as it is consistent. That buffer is what keeps you from reaching for a high-interest card when something happens — a disaster on top of a disaster in a high-rate era.
Strategy 4: Invest in not getting ill
When treatment is expensive, good health is the asset with the highest return. Food, sleep, exercise and age-appropriate screening genuinely reduce the probability of a large bill — and keep your medical history clean enough to access insurance on good terms in future.
In short
An expensive era is not a reason to stop planning for health; it is a reason to plan better. Keep the premium structure right-sized, use state entitlements as the base, build a buffer, and look after yourself at source. If the premium is starting to feel heavy and you want to adjust without losing the cover that matters, message us on LINE and we will look at the structure with you — no charge.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.