Health Insurance Basics

Employer-provided health insurance is convenient but temporary by definition — it disappears the moment you change jobs, get laid off, or retire, often exactly when you're least prepared to arrange new cover quickly. A personal health policy, held independently of your job, is what actually protects you across career changes and into retirement.

Sum insured matters more than most people budget for. Metro-city hospitalization costs have risen sharply, and a ₹3-5 lakh cover that felt adequate a decade ago can be exhausted by a single serious hospitalization today. A common rule of thumb is a base cover of at least ₹5-10 lakh per person in a metro, topped up with a super top-up policy for a fraction of the cost of raising the base sum insured directly.

Waiting periods are the detail that catches people off guard: most policies exclude pre-existing conditions for 2-4 years and have initial waiting periods for specific illnesses. Buying health insurance while young and healthy — before a condition exists to be 'pre-existing' — is one of the few financial moves where waiting genuinely costs you, rather than helps you.

Before comparing premiums, compare claim settlement ratio, network hospital coverage in your city, and whether the policy covers modern treatment methods like day-care procedures. The cheapest policy that denies or delays a real claim is far more expensive than a slightly pricier one that pays out reliably.