Do You Need High Covers?

Many experts are doubtful over the fact that a cover of 10 lakh will be financially sufficient for treating any critical illness, especially in the metro cities. Gaurav Mashruwala, a Certified Financial Planner, says, "People won't have any choice but to visit premier hospitals if they contract any serious illness. In Mumbai, a room in these premier hospitals costs 5,000 to 7,000. A room in the ICU would cost at least three to four times the normal room." According to him, if you can afford the premium, then you must sign for the maximum health cover.

For instance, the premium for a health cover of 50 lakh can be between 27,000 to 50,000 if you are 35-year-old, depending upon your product and the number of your family members covered by the policy. The renewal premiums will also be raised after factoring in inflation and healthcare costs. “These policies do not have a claim-based loading at renewal. However, the premium of every policy increases after 1-2 years because of inflation and rising healthcare costs. So you have to factor in the potential hike in premi-um when you budget for such high-value policies," says Suresh Sadagopan, a Certified Financial Planner with Ladder 7Financial Advisories.