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Why should you opt for a higher sum insured in Health Insurance Policies
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Why should you opt for a higher sum insured in Health Insurance Policies?

Raghav (30-years-old) lives in Hyderabad and works in a private company. Raghav purchased a health insurance policy of Rs 5 lakh two years ago. Raghav had some kidney issues, and he was admitted last year to a hospital. The hospital handed him a bill of Rs 3 lakh for his treatment costs. Now, this year he was infected with the COVID-19 and again hospitalized for his corona treatment. For second-time hospitalization, his bill was Rs 1.5 lakh for the entire treatment. These two hospitalizations almost exhausted his basic sum insured amount. Now, Raghav thought he made a mistake by not purchasing a higher sum insured policy. Raghav and many people also want to buy higher-sum-insured policies to strengthen their safety and security during this global pandemic.

Nowadays, medical inflation is also playing a pivotal role in raising the cost of healthcare treatment. With medical inflation rising at the rate of over 50% i.e. from 4.39% in 2017-18 to 7.14% in 2018-19, having a health insurance policy with a higher sum insured has become mandatory for everyone. These days, customers are showing inclination in purchasing Rs. 25 lakh sum insured policies instead of Rs. 3-5 lakh policies. Some even want to purchase a policy of Rs 1 crore to minimize their financial burden during healthcare contingencies.

Most Indian citizens used to purchase health insurance plans with a lower sum insured so that they could save on their premiums. Moreover, in India, health insurance is not mandatory for people. That’s why people consider health insurance on their least priority list. This COVID-19 pandemic has made people realize the importance and value of health insurance policies. But most people own health insurance policies with lower sum insured, and they fall short of coverage when they are planning to take advanced treatments.

A health crisis can knock on your door at any time without any intimation. If all your family members need to be hospitalized simultaneously under an emergency crisis like the COVID-19, then a sum insured of Rs 7-10 lakh will not be sufficient to cover the medical expenses of all family members. Moreover, you can’t ignore medical inflation that will keep increasing every year. Considering all these facts, now people are selecting a higher sum insured health policy to uplift their coverage.

The Indian health insurance market should revamp to meet the global standards and launch some higher sum insured health insurance policies at a reasonable price. Over the past few months, many eminent health insurers in India have come up with Rs 1 crore sum insured health plans. These plans are a combination of the base plan and super-top policy.

These 1 Crore health plans offer a spectrum of coverage to policyholders, and they are quite affordable. Moreover, you can conveniently purchase these policies online and offline. These 1 Crore policies are available both as individual as well family floater plans. With this plan, you are free to choose any hospital in any city for the treatment of any ailment.

The Cost of the Premium for 1 Crore Health Insurance

For an Indian male (32-years-old) who is staying in a metro city, the monthly premium for a Rs 1 Crore health insurance plan could be between Rs 600–800. If he adds his spouse to the plan, his monthly premium will be between Rs 1,100 and 1,300.

Reasons to choose a higher sum insured for health insurance plans

  • Safeguards one’s savings
  • Affordability
  • Highly Effective Plans

For those living in metro cities, the cost of hospitalization has increased manifolds (approximately 175%), which is quite frightening. Thus, you should always purchase a policy of higher sum insured that will give you sufficient coverage against various diseases. Let’s check out some reasons why you should opt for a higher sum insured policy.

Safeguards one’s savings

A person’s financial plan consists of many things, including his children’s education, purchasing properties, children’s marriage, or even retirement plans. But a medical contingency brings a plethora of challenges, including endless medical bills. Under this situation, a health insurance policy may act as a savior. If the sum insured amount is low, then one either needs to borrow money from friends or needs to withdraw money from his/her savings to pay the hospital bills. A hefty medical bill can drain out all your hard-earned savings. On the other hand, a higher sum insured secures your and your family’s health and savings.


People have the fallacy that they need to pay hefty premiums that will burn their pockets by opting for a higher sum insured health insurance plan. Though the higher sum insured may enhance your premium amount, you can minimize your premium amount by choosing a top-up plan. The top-up insurance plans are quite affordable, but they will cover huge medical bills.

Highly Effective Plans

Your premium will be indeed on a higher side for a higher sum insured health insurance plan. But this type of plan offers the utmost benefit to policyholders. Since a customer has a comprehensive higher sum insured health policy, they don’t need to purchase additional health plans to get protected against any specific diseases separately or individually. In addition, under a higher sum insured health policy plan, the whole family is covered and can enjoy the policy’s benefits.

A higher sum insured is always recommended to solve all your insurance questions and give adequate security to your entire family. In addition, a higher sum insured health policy will help you deal with all healthcare expenses comfortably. So, opt for a policy that provides sufficient coverage at times of contingency. The experts also give the same advice on health insurance plans. Though affordability is a concerning facet, still, you don’t compromise with your and your family’s health.

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