Do I need to purchase health insurance when applying for a non-O retirement visa from outside Thailand?

I am in the process of applying for a non-O Visa (retirement) using the online e-visa web site ([[members only])) .

Based on the comments that I had read in this forum and elsewhere, I was under the impression that it was not required to purchase health insurance for a non-O retirement Visa.

However, as part of the online application I am being requested to submit proof of insurance which meets the following requirement (this is extracted verbatim from the online form) :

**Health Insurance issued by thai insurer with outpatient benefit of not less than 40,000 THB and inpatient benefit of not less than 400,000 THB. The insurance must also cover all medical expenditures including COVID-19 at least USD 100,000 and must cover the whole period of stay in Thailand.

**Does this requirement apply only when requesting the visa outside Thailand? If so, it seems to be reason enough to enter Thailand Visa exempt and then apply for the Non-O Visa from within Thailand.

Notes:

1. I am aware that for the Thai Pass, health insurance providing Covid coverage for 50000 is required.

2. I am planning to purchase a health insurance that covers inpatient care, in order to manage the risk of an expensive hospital bill in the case of serious illness. However, I am not planning to get outpatient coverage, because it really boosts the premiums and is not cost viable, given the cost of basic outpatient care in Thailand.