Health Insurance
InsuranceHealth insurance covers hospitalisation and medical expenses in exchange for an annual premium. With Indian healthcare inflation at 14%/year, adequate health cover is the single most important insurance purchase before any investment.
In detail
How much cover: Rs 5L minimum per person, Rs 10L for metro cities, Rs 20L+ for families with ageing parents. Buy when young (lower premium, no waiting periods). Top features to check: room rent limit (avoid sub-limits), pre-existing disease waiting period (3-4 years standard), no-claim bonus (10-50% per year), restoration benefit, lifetime renewability.nnTop-up vs super top-up: more economical way to increase cover beyond base policy. A Rs 10L base + Rs 40L super top-up costs less than a Rs 50L base policy.
Real-life example
Meera, 28, buys Rs 10L health insurance. Premium: Rs 8,500/year (deductible under 80D). At 35 with pre-existing conditions, same cover would cost Rs 22,000+. She files a Rs 3.5L claim for appendix surgery. Zero out-of-pocket. The Rs 8,500/year premium proves its worth in a single event.