₹1-crore health cover is fast becoming a necessity. But how to buy one?

Though she had a reimbursement-based government health cover, the procedural delay and out-of-pocket expenses proved overwhelming. She passed away within three months, unable to continue chemotherapy.

The experience made Pathak realize the importance of having a strong insurance cover with adequate immediate support, regardless of employer-provided plans. He opted for ₹50 lakh base coverage, which would increase to ₹1 crore with no-claim bonuses.

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More Indians are opting for ₹1-crore health covers as medical costs rise. Online insurance platform Policybazaar saw the number of such policies surge to 9,739 in 2024 from 4,427 policies in 2023. “In 2025, we’ve already sold 7,521 such policies by May," said Siddharth Singhal, health insurance head at Policybazaar, noting an 85% growth expectation for the year.

Why ₹1 crore?

Insurance advisors say ₹1 crore may feel excessive today, but five to 10 years down the line, it could be just about right. Medical inflation is pushing costs up fast. Data from the surgery-care company Hexa Health showed that the average severe illness claim in India doubles every 10 years.

For example, cancer treatment costs that hovered around ₹2-3 lakh in 2015 now average ₹4-6 lakh, and could touch ₹9 lakh by 2035. Meanwhile, a heart bypass that cost ₹3 lakh a decade ago may cost over ₹6 lakh by 2035.

While average treatment costs for severe illnesses provide a baseline, actual expenses often run significantly higher, especially in private hospitals and metro cities, where charges can be 2-3X the national average.

Additionally, illnesses rarely occur in isolation; follow-up treatments, diagnostics, and medications add recurring costs over time.

One practical way to secure comprehensive coverage is to opt for a ₹1 crore base health insurance policy directly. TakeHyderabad-basedNiraj Dugar, a 34-year-old financial planner who holds such a plan. He finds his annual premium of around ₹27,000 manageable, noting that insurers don’t charge proportionally more for a significantly higher sum insured.

For him, this coverage is essential, not just for today’s hospital bills, which can run into lakhs for a single week’s stay, but to stay ahead of relentless medical inflation.

Before covid-19 hit, Bhumica Aggarwal's father, a businessman from Meerut, invested in a ₹1-crore policy, realizing the premium bump for higher coverage was ‘not much’. Five years later, at 67, he happily renews it at ₹87,000 per year. Though claims have been minor, he values it as a critical ‘safety net’.

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Preeti Zende, a Sebi-registered investment advisor, said a ₹1-crore cover is within reach for anyone with a disposable income of ₹1 lakh or more.

To balance affordability, Zende advises gradually increasing coverage. But if one delays it too long, a sudden illness like cancer could prevent them from receiving upgrades.

Why start early?

“Even if health issues arise, insurers are more likely to accommodate sum increases for existing policyholders, sometimes with a premium loading or waiting period,than accept fresh applications after diagnosis because getting coverage after it’s detected is near impossible," said Zende.

One of Zende’s clients had opted for a ₹1-crore health cover, combining a base policy with a super top-up. When cancer was diagnosed, the coverage proved critical. Had they waited until after diagnosis, insurers would have outright rejected their application.

One of the most popular ways to afford a ₹1-crore health cover is to combine a base policy with a super top-up plan. According to Policybazaar, 80% of its customers opt for a ₹10-lakh base policy paired with a ₹90-lakh super top-up combination compared to other combos.

However, Zerodha-backed insurance advisory firm Ditto Insurance warned that while this combo keeps premiums low, super top-ups often come with conditions that can limit how much of the cover one actually uses. “Super top-ups can have room rent or disease-wise limits. One must understand those conditions and avoid them if possible."

If the base and super top-up dates don't align, one may also end up juggling two renewal dates and premium payments. Even so, for those prioritising affordability, this combo remains a go-to.

Comprehensive coverage vs super top-ups

Ditto Insurance has observed a recent shift: people with higher financial capacity are moving toward comprehensive health plans that automatically increase the sum insured each year, up to a certain cap. These plans often include loyalty bonuses, unlimited restoration benefits, and cover for consumables—benefits that in many cases offer better value than a super top-up.

While these policies come at a slightly higher cost, many find them more straightforward and practical. This is what Pathak chose after his mother-in-law passed away. He paid a premium of ₹1.15 lakh for a three-year renewal this year.

Starting 2024, insurers in India have come up with health plans that offer “super bonus" features, typically as add-ons that boost your cover each year, sometimes up to an “unlimited" sum insured.

Priya Deshmukh, head of health products, operations and services at ICICI Lombard, explained that the Elevate plan's “power booster" add-on “provides 100% of cumulative bonus annually of the base sum insured every year on year with no cap, thus unlimited sum insured, regardless of whether a claim is made in the preceding year."

Aditya Shah, founder of Hercules Insurance Advisors, called these the “first option" for those targeting high coverage. When bought early, such plans can grow to ₹3-5 crore over the years.

He suggested that a ₹1-crore health insurance policy may be unnecessary, due to the availability ofnewer 2024 plans with features like annual cover increases. Shah described such plans as more “sustainable" long-term options compared to high-premium ₹1-crore covers, especially as premiums become unaffordable with age.

However, Ditto pointed out that super bonus add-ons, especially those with unlimited accumulation, do not have the same level of security as a base plan does when it comes to lifelong renewability and pricing.

There is a risk that insurers might increase the price of these add-ons significantly in the future if the claims associated with these benefits become unsustainable.

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In the case of the super bonus add-ons, especially those with unlimited accumulation, if you opt out of this cover at the time of renewal, all the bonuses accumulated under the power booster will be reduced to zero.

What's the cost-effective way?

Experts suggested gradually increasing the sum insured year after year. Next best is the popular base ( ₹10L) + super top-up ( ₹90L) combo—affordable but with hidden limits. Comprehensive plans with in-built increasing cover come third—pricier but packed with features. New “unlimited growth" policies look great on paper due to their extensive benefits, but they can be expensive in the long run.

What's the simplest but most expensive option? Buying a full ₹1-crore base policy outright—smooth claims but heavy premiums.

Vedant Vichare is a contributor to Mint.