Is Rs 1 Crore, the Ideal Health Insurance Amount for you?

Aparna Sen, a 40-year-old Bangalore resident was diagnosed with COVID-19 infection and was admitted to a private hospital immediately. Her health deteriorated in the next few days, forcing the doctors to transfer her to the ICU, where she was treated for nearly 15 days. Post this, she was transferred to an isolated ward and kept under observation for a few more days.

Finally, after 47 days in the hospital, she recovered fully from the infection and was discharged. The hospital charged her with a hefty bill of 3.5 lakhs towards hospitalization, medical consumables, doctor fee, etc., Aparna had a health insurance policy for a sum insured of Rs.2 lakhs only and hence she had to foot the remaining amount for the hospital bill from her savings.

Such incidents have become quite common among those who underwent treatment for COVID-19 infection. While a health insurance policy is very important in today’s world, the rising medical costs and an increasing number of deadly diseases have brought focus on the amount of coverage that one should opt for in such times. 1 crore health insurance covers are gaining more popularity nowadays, as more insurance companies are launching them to cater to the demanding customers who prefer to safeguard themselves with higher coverage.

Let us look at whether it is worth buying a 1 cr health insurance cover while keeping the plans in sight.

Need for Health Insurance Policies with Higher Coverage

As per the Indian Council of Medical Research (ICMR) data, the number of cancer cases in India will rise by 1.5 million in 2025 (up from 1.39 million in 2020).

While the number of patients with heart disease and stroke is increasing year on year. Moreover, a majority of people are suffering from diabetes and hypertension these days, and treatment for such diseases is becoming costlier across all hospitals. During the peak of COVID-19, the cost of a 15-day-hospitalization at a private hospital in a metro city was ranging between Rs.2 lakhs to Rs. 5 lakhs.

What are 1 Crore Health Insurance Policies?

While India provides efficient and better healthcare services for many ailments, the cost of treatment is rising at a higher rate. Therefore, your insurance policy needs to provide coverage accordingly.

For example, a health insurance policy for a sum insured of 20 lakhs taken by a 30-year old individual will cost a premium of Rs.900 per month, while a 1 crore health cover might cost Rs. 1,000 per month. With the premium of higher health covers becoming affordable, it ensures the best of healthcare treatment for the individual or all the family members, without the need to stress over the medical costs.

Some of the popular insurance policies that provide coverage of 1 cr in medical terms are:

• Religare Care Advantage Policy

• Religare Care Global Policy

• Max Bupa Health Companion Policy

• Star Health Young Star Policy

• Star Health Comprehensive Policy

• Aditya Birla Health Activ Assure Diamond Policy

• Digit Health Care Plus Insurance Policy

• Manipal Cigna Prohealth Premier Policy

• Edelweiss Health Insurance Platinum Policy

1 Crore Health Insurance Cover – Who must buy?

To possess a 1 crore health insurance seems fancy, but not sure if you need to buy it or not? We have put together a list of a probable segment of people who will find the higher coverage useful, such as:

1. If You Have Growing Children: These days, the best gift that you can pass on to your children is financial security and stability. Having a robust health plan, with high coverage, such as this one can help them tackle inflation, medical expenditure, sudden hospitalizations, etc., You can start investing at lower rates today by taking a suitable policy at a young age, than what they would have to pay a premium in the future when they grow old.

2. If You Have Terminally or Critically ill Family Members: People who are terminally or critically ill need to be treated regularly, and the treatment procedures are not only exhausting but costly too. Inadequate treatment is not an option as it will only lead to the worsening of their health condition but may lead to future complications as well. It is of utmost importance to fund those necessary costs of such people, for which a health insurance cover of this proportion comes in handy. There are several add-ons available as well that are important for such illnesses and which will keep the policyholder stress-free and satisfied of being able to avail of all the best possible treatment options.

3. If You Have a Large Family: When you have a large family and want to provide a good amount of health insurance to everyone, it is better to have a health insurance cover that amounts to a sufficient sum. Having Rs 1 Crore in health insurance can make sure everyone in your family is sufficiently insured and can avail of any medical facility at any time, without having financial distress. Having a collective family health insurance plan is also more cost-effective than having individual health insurance plans.

Should you Purchase a Health Plan for ₹1 Crore?

The common answer given by many people is no because they think that these policies are expensive. But then, it’s up to the individual to decide what is costly and what is not?

The truth is that the difference in premium is not very high between policies that are for 1 cr health insurance and those that are not. However, the mental satisfaction of being financially safeguarded is something that is of primary importance.

In addition to that, the threat of COVID-19 is still looming over us. It is just, we as people have learned to deal with it better, and have decided to move on with our lives. Hence, you must make sure that your existing health insurance plan provides adequate coverage for you and your family for COVID-19 related medical emergencies even if it is not 1 cr in medical terms.