Is it worth buying a 1 crore sum insured healthcare plan?

Posted on: May 4, 2023 | 3 mins | Written by: HDFC ERGO Team

Is it worth buying a 1 crore sum insured healthcare plan?

Is 1 Crore Health Insurance Plan Worth Buying?

A high-value 1 crore health insurance is a type of healthcare policy that covers expensive medical treatments. With a sum insured of up to Rs 1 crore, this plan is beneficial for those with a risk of critical and life-threatening diseases. The rising medical costs for treating critical illnesses can burn a hole in your pocket; hence a high-value 1 crore health insurance cover becomes necessary. It covers a wide range of medical expenses, such as doctor and specialist fees, medical and diagnostic tests, ambulance charges, pre- and post-hospitalisation, in-patient costs, organ donor expenses, costs of surgery, domiciliary hospitalisation, and room rent.

How much does the premium for Rs 1 crore health insurance coverage cost?

For a family of 4 members, a Rs 1 crore health insurance can provide sufficient coverage, but the premium will be quite high, which many families may not be able to afford. The 1 crore health insurance premium can be anywhere between Rs 50,000 and Rs 70,000 per year depending on the insurance provider, age of the applicant, add-on covers opted, etc. The online health insurance premium calculator can give you an exact premium amount of 1 crore health insurance. However, the point to note here is that the premium will also increaseas you age.

Who should buy a Rs 1 crore healthcare plan?

It may not be possible for a common man to buy the high-ticket 1 crore health insurance plan though it is recommended for the below categories of people:

• The family’s sole earning member should consider buying 1 crore health insurance to safeguard the dependent family members during medical emergencies. In the absence of a high sum insured family health insurance, your savings can get exhausted in hospital bills.

• High-value health insurance is ideal for those having a family history of critical illnesses. An individual will be at high risk of developing cardiac problems if there’s a history of cardiovascular diseases in the family. Having a 1 cr medical insurance plan can give access to better healthcare facilities which can be expensive.

• Once you cross 40 years of age, you become vulnerable to many health issues, including life-threatening diseases, the treatment of which can be quite costly. Hence, individuals above the age of 40 can consider buying health insurance 1 crore to stay prepared for medical emergencies.

• If your work involves a lot of stress and pressure, you can be a victim of lifestyle and life-threatening diseases. Being prepared with a high-value 1 crore health insurance can take care of your finances and keep your worries at bay.

Is a 1 crore health insurance plan really needed?

Although health insurance has become necessary for everyone due to the ever-increasing healthcare costs, experts believe a 1 crore health insurance plan may not be required in all cases. In fact, experts feel it is too much insurance coverage. Hospital bills crossing Rs 25-30 lakh in India are rare. While buying a health insurance policy, one should assess the medical needs as well as affordability and opt for a sum insured that will be adequate for all family members. Keep in mind that a health insurance premium for a 1 crore plan will be quite high, so go for a high insurance plan only if you can afford it. However, the 1 crore health insurance can be advantageous if you have a family history of critical illness.

In a nutshell

Purchasing a good health insurance plan with a sufficient sum insured to deal with medical emergencies is essential. Due to medical inflation, do not blindly buy 1 crore health insurance just because you can afford the 1 crore medical insurance premium now. Check the terms, conditions, and exclusions to avoid any nasty surprises in future. Also, the 1 crore medical insurance premium will increase with advancing age. So, before investing in such a high amount, make sure your family health insurance plan has enough coverage, suits your family’s requirements, and whether such a high-value plan is actually needed.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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