Health
How much health insurance do you actually need in India?
Medical costs in India climb roughly in the low-to-mid teens each year. Here's a simple framework to size your cover by city, age and family.
Health insurance is the most misjudged cover in India. Many rely solely on employer group cover, which disappears the day you change or lose a job — often the exact moment you need it most.
Medical inflation in India runs materially ahead of general inflation — annual medical cost increases have been reported in the low-to-mid teens (WTW Global Medical Trends Survey, 2024). A treatment that costs 5 lakh today can cost significantly more within a few years. Cover that feels generous now can be inadequate surprisingly fast.
A simple sizing framework: in a metro, a young family should think in terms of 10–15 lakh of base cover, topped up with a larger super top-up policy that kicks in after a threshold. Smaller cities can start lower, but the top-up logic still applies because serious treatments often mean travelling to a metro hospital.
Beyond the sum insured, read the fine print: room-rent limits, disease-specific sub-limits, co-pay clauses and waiting periods for pre-existing conditions. A large number on the policy means little if sub-limits cap what actually gets paid.
Finally, buy personal cover independent of your employer, and buy it while you're healthy — waiting periods and underwriting only get harder with age.
Key takeaways
- Don't rely only on employer cover — it vanishes when you switch jobs.
- Use a base policy plus a super top-up to reach high cover affordably.
- Watch room-rent limits, co-pay and sub-limits, not just the sum insured.
This article is for general education only and is not financial or insurance advice. Insurwise does not sell or recommend any insurance products at this stage.