Is it advisable to take one crore health insurance?
Please help me to understand the pros and cons of taking one crore health insrance.
If one takes Manipal Cigna LTH for 1 Crore, the premiums are one fifth the costs of any other company in the market (probably cheaper than your existing policy if you are already covered for Rs.25 lakh.
The question is whether Manipal Cigna is a company worth dealing with...not even 1 broker I have spoken to has recommended it, the question is why...
Hope you are doing well and apologies for the delay in replying to this! We missed this question somehow.
First of all, you should understand that health insurance is for your old age. Considering the healthcare inflation which is increasing at double the rate of overall inflation, increasing treatment costs, etc., buying health insurance with adequate coverage today makes the most sense. When the pandemic was at its peak, the treatment costs for a 10-15 days hospitalization in a super-specialty hospital in cities like Delhi and Mumbai came up to Rs 10 Lakhs per person! This just adds to the reason why anyone should consider buying health insurance with adequate coverage - so that one doesn't end up paying hospital bills from their own pockets even after having health insurance.
To answer your question, there are two different types of 1 crore health plans available in the market. The first one is the 1 Crore base plan. These are comprehensive health insurance plans offered by insurers that have an option to select a sum insured of 1 Crore (or above). Examples of such insurance plans are Care Insurance Care plan, Niva Bupa ReAssure plan, Star Health Comprehensive plan, etc. The second one is a combination of a base plan and a super top-up plan. Super Top-up is an extension to your new/existing base health insurance plan. This super top-up plan starts paying only after you have exhausted your base plan amount (called a deductible). Buying a 1 Crore plan as a combination of base and super top-up would be much cheaper compared to a 1 Crore plan as an only base because super top-up plans are very cheap comparatively. On the other hand, if you go for a 1 Crore plan as a base cover, you would get the maximum out from that insurance plan - meaning you would get all the benefits that a comprehensive plan has to offer, the maximum/no sub-limits, etc.
Normally, we recommend customers between the age of 28 to 35 years to go for a 20-30 lakhs sum insured for an individual policy and 50 lakhs sum insured for self and spouse covered under floater policy- as a combination of base and super top-up.
We have written detailed articles on a 1 Crore cover and Super Top-Up plans. Sharing the links to those articles with you for your ready reference.
Hope this helps! Let me know if you have any follow-up questions.