How to Choose Health Insurance
What to look for in a health insurance policy: cover amount, waiting periods, room rent limits, exclusions, and tax benefit under Section 80D.
A single hospital stay can wipe out years of savings, and medical costs tend to rise faster than general inflation. Health insurance is the main protection against that. Choosing well means looking beyond the premium.
How much cover
A common starting point for a metro-based family is a base cover of ₹10–25 lakh, topped up with a super top-up plan, which is cheaper than a larger base policy. Smaller cities may need less. Do not rely only on an employer's group policy, because it ends when you leave the job.
Terms that matter
- Waiting period: pre-existing conditions are usually covered only after a wait. Shorter is better.
- Room rent limit: a cap on room rent can reduce your whole claim proportionally. Prefer no cap or a generous one.
- Co-payment: a share of every claim you pay yourself. Avoid it if you can.
- Sub-limits and exclusions: read which treatments are capped or not covered.
- Network hospitals: check cashless coverage near where you live.
- Claim settlement record: look at the insurer's published claim figures.
Buy young, buy early
Premiums rise with age and conditions, and waiting periods start only once you hold the policy. Buying while healthy locks in better terms.
Tax benefit
Premiums qualify for a deduction under Section 80D in the old regime, with higher limits for senior citizens. The new regime does not offer it. See the regime comparison.
Pair it with life cover
Health insurance covers treatment costs; it does not replace income if you die. Read the term insurance guide too, and keep an emergency fund for costs insurance does not cover.
Educational content, not insurance advice. Read the policy wording and brochure before buying.
Frequently asked questions
Is employer health insurance enough?
Usually not. It ends when you leave the job, and the cover is often low. Keep a personal policy as well.
Is a super top-up plan worth it?
For many people yes, because it raises total cover at a much lower premium than a bigger base policy.
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Last reviewed: October 2026. General education, not financial advice.