Health insurance is the one policy almost everyone under-buys, because they size it against yesterday's hospital bills. Medical inflation in India runs around 12–14% a year — faster than almost any other cost — so a cover that looked generous when you bought it quietly becomes inadequate. A single serious hospitalisation can wipe out years of savings, which is exactly what insurance is meant to prevent.
The number that's actually enough today
For a family in a metro, a floater cover of ₹10–25 lakh is the sensible range in 2026 — not the ₹3–5 lakh many people still hold. A week in a private ICU, a major surgery or a cancer treatment routinely crosses ₹10 lakh now. In smaller towns you can go lower, but the direction is clear: most people's cover is a generation behind their real risk.
Score your financial healthWhy your employer's policy isn't enough
Company health cover is a great top-up but a dangerous only-policy, for three reasons: it's usually small (₹3–5 lakh); it vanishes the day you leave or lose the job — often exactly when you're most vulnerable; and it doesn't build continuity (no-claim bonus, pre-existing-disease waiting periods served). Hold your OWN policy independent of your employer, and treat the company one as a bonus on top.
The cheap way to buy a big cover
Two moves make a large cover affordable: (1) a base policy of ₹5–10 lakh plus a super top-up that kicks in above a deductible — this buys ₹25 lakh+ of total cover for a fraction of the cost of a single large policy; (2) buying young, before any pre-existing conditions and while premiums are low, and never letting it lapse so waiting periods stay served.
Size your health cover for a bad year in a private hospital today, not for the bill you remember from a decade ago — and own the policy yourself so it can't disappear with a job. A base-plus-super-top-up combo, bought young and never lapsed, gets most families to a genuinely safe cover cheaply. It's the least glamorous insurance and the one most likely to save you from real ruin.
Frequently asked questions
- How much health insurance do I need in India?
- For a metro family in 2026, a floater of ₹10–25 lakh is the sensible range — a private ICU week or major surgery routinely crosses ₹10 lakh, and medical inflation runs 12–14% a year. Smaller towns can go a bit lower. The old ₹3–5 lakh covers are now often inadequate.
- Is my employer's health insurance enough?
- Usually not as your only cover. It's typically small, disappears when you leave the job (often when you need it most), and doesn't build continuity like no-claim bonus and served waiting periods. Keep your own personal policy and treat the employer's as a top-up.
- How do I get a large cover affordably?
- Pair a base policy (₹5–10 lakh) with a super top-up that activates above a deductible — together they give ₹25 lakh+ of cover for far less than one large policy. Buy young, before pre-existing conditions, and never let it lapse.