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Buying a Health Plan: Consider medical inflation before deciding the amount
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Consider medical inflation before deciding health insurance cover amount

Though the popularity of health insurance has increased manifolds, still, many people have scant ideas about health insurance plans. As a result, they usually purchase health insurance policies at the 11th hour when a crisis arises. Because they think they can buy a health insurance policy and increase the sum assured amount as per their requirement, this is the biggest fallacy. In reality, you can’t buy health insurance or increase its coverage as per your requirements.

Insurance is not a shelf-life product

Since insurance is not a shelf-life product, you can’t purchase it randomly. Before buying health insurance, you need to send a health insurance proposal form to health insurance companies mentioning your detailed health condition. After evaluating your health conditions, the insurers have the right to accept or decline your proposal.

Very often, people argue with companies over the rejection of proposals. According to them, they are completely healthy and fine. But the insurance companies’ viewpoint of your” fit and healthy” status could be different from yours because these companies consider your present risks and the future influence of your health because of your present conditions. If you are perfectly fit and fine, then the companies extend your insurance covers. Thus, you should plan meticulously and purchase the right amount of coverage while buying health insurance online.

So, what would be the right amount of coverage that you want to purchase? People usually calculate the amount based on present healthcare costs. They may choose the sum assured amount between Rs 5 lakh and Rs 10 lakh, considering the bypass surgery claim is nearly Rs. 5 lakh at present. But in the future, these costs will certainly rise, and strikingly, the insurance companies will not enhance your coverage at any cost.

Factor in medical inflation

First, you need to understand the effect of inflation (presuming a rate of 15%) on your hospitalization cost. Suppose a medical treatment that comes around Rs 10 lakh today will cost Rs 40 lakh after 10 years. It may cause Rs 1.6 crore after 20 years. Therefore, you should purchase health insurance cover after considering this medical inflation for at least 20-30 years down the line. It will be a prudent decision if young applicants go for higher coverage. Young people will be benefited from higher coverage as they have a greater number of years to take care of. These days, many established health insurance companies offer higher covers of up to Rs 3 crore.

So, what would be the premiums if you purchased a health cover of Rs 1 crore? Nowadays, many health covers are budget-friendly and will cater to all your health requirements. You can even go for a combination of a base cover of Rs 10 lakh and then purchase a top-up of Rs 90 lakh. This will lessen your overall premiums. For example, if a 35-year old guy purchased a policy of Rs. 10 lakh and Rs. 90 lakh top-up, then his premium will be Rs 13,062 annually. 

So, a health insurance policy that seems sufficient now may be inadequate after some years. Thus, it would be beneficial if you choose a mix of affordable premium and sum insured policies. By paying affordable health premiums every year or purchasing a top-up policy along with your base health cover, you can combat medical inflation without compromising your treatment.

Enhance your health cover to combat medical inflation

According to experts, medical inflation is increasing at a rate of 18% to 20% every year in India. Many individuals may not sustain and meet their healthcare needs because of these high costs. People who belong to an average financial background can’t fulfill their healthcare requirements due to this sky-high price of healthcare services.

Top 4 Reasons that are responsible for the increased medical inflation rate in India

  • Shortage of deft healthcare professionals
  • The cost of advanced technology used in Medicare services is very expensive. Moreover, the cost of diagnostic equipment is also high.
  • Scarcity of number of specialists and surgeons in this field
  • Many patients are opting for the premium category of rooms and extended hospital stay for their treatment.


These are some reasons behind the increasing costs of healthcare. You should have a stable financial background or must be covered with a good health insurance plan to meet all your healthcare needs. It’s time to combat medical inflation with an increased health cover.

Because of this medical inflation, you always need high health insurance cover. The cost of treatment is rising, especially for severe illnesses. If a patient needs to stay in the hospital for a longer period, then his/her medical expenses will be skyrocketing. You can get rid of such healthcare expenses by escalating your health insurance coverage.

People often get confused about whether to choose a top-up plan or go with a new policy with high coverage when they are planning to increase their health covers. Top-up plans will act as an add-on to your current health insurance policy. You can purchase top-up plans with your existing base cover policy, and it will be activated if your healthcare expenses surpass the coverage of the base plan.

Some people prefer to discard their old policies and want to go forward with a new health insurance policy that offers higher coverage. If you are not covered with any health insurance policy, you can buy a new policy with higher coverage. But if you want to purchase a top-up plan, then you must own a health insurance policy. By comparing various top-up plans from your insurer, you can choose the most suitable one that meets all your healthcare needs.

If you want to overpower medical inflation, always try to enhance your health insurance coverage. Never purchase health insurance plans hastily, instead choose a policy prudently by considering the medical inflation of India. You can visit iiflinsurance.com to know more about how to pick the right health insurance coverage.

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