In most advanced countries or should I say, developed countries, health care is well taken care off. This cannot be said about countries that are less developed or what we call “developing countries”. The problem is in these type of counties, health care amenities are also being developed and modern machines and medicines usually cost so high that an ordinary man on the street will never be able to afford them. So they turn to government run hospitals and clinics. Now it is not to say that these clinics are any inferior to private clinics, but only private institutions can afford the best equipments because they are making money from their services.
With this realization, the trend these days in modern developing countries that are nearly on the verge of being considered “developed”, people are turning to health insurance as a investment. These insurance offers good coverage in times of emergency and if you are so lucky as not to get seriously sick for your whole life, you still get to withdraw the money when the policy matures.
Now that is for those who can afford to pay the monthly premiums of such a policy. What about the majority who can’t? What does the future holds for them? Forced savings is one method. The funny thing about humans is they adapt very fast to different situations. If they earn that much, they learn to adapt to a lifestyle that will suit their income. Those who earns more will feel that these people won’t be happy with their meagre earnings, but the truth is they have their own kind of joy and it does not mean going for oversea holidays twice a year. They are happy when they see meat on the table and that is their kind of simple enjoyment which to them is better than taking a plane, flying a few hundred kilometers across the continent and spend 2 weeks lazing in the sun.
With this ability to adapt they force save for their old age. I won’t say retirement, as people in these situations don’t retire. They work until one day their boss reject them. Forced saving is a method whereby you commit a small part of your monthly earnings into your saving account. It is a deposit and forget thing. It becomes a ritual. The amount can be very nominal like say 50 dollars monthly and they brainwash themselves to make themselves believe that their earnings is the amount after the 50 dollar deposit. Say they earn 1500 per month, they discipline themselves to believe that their earning is 1450 dollars and they make good and adapt their lifestyle to that earning. After 20 years, when they are out of a job, they will have 12000 in the bank which will allow them to start a small business. Provided they don’t fall seriously ill in the process of course, but that will be something that is up to the almighty won’t it? We do what we have to do.