A health insurance floater policy of Rs 5 lakh was considered
adequate till recently. However, rising healthcare costs are pushing individuals to opt for
higher covers. Cashing in on the trend, some companies are now offering Rs 50 lakh, and even
Rs 1 crore covers. Not surprisingly, the premiums are steep. An individual health cover of Rs
50 lakh for a 30-year-old would cost Rs 20,000-60,000 a year. A family floater of a similar
sum insured would cost Rs 40,000-50,000 if the oldest family member is 30-35
HOW MUCH DO YOU NEED?
Divya Gandhi, principal officer and head of general insurance,
Emkay insurance Brokers, says a Rs 20-25 lakh policy is sufficient even if you plan to get
treated in the best of hospitals in metros. The biggest advantage of high value covers is
that international treatment is compensated. However, the list of ailments covered is
restrictive. These policies also have a higher co-payment clause for senior citizens at 20
per cent. According to certified financial planner Abhinav Gulechha, the year-onyear premium
cost does not justify the coverage provided.
WHAT ARE YOUR OPTIONS?
Gulechha suggests buying an indemnity plan of up to Rs 5 lakh
and increasing it as and when your requirement or responsibilities increase by way of a top-
up policy. Assuming you may still consider going overseas for a specialised treatment, you
could buy a fixed benefit policy like for critical illness, in combination with the regular
hospitalisation cover. You could also buy a high-sum insured critical illness plan and get
the entire sum insured as lump sum. High-value covers are beneficial if you are looking to
cover your family.