Until recently, having a health insurance plan of Rs 2-5 lakhs was considered adequate. But now, seeing that healthcare costs are quickly rising, people have started to opt for high-value health insurance plans. High-value plans are policies that offer a higher sum assured (e.g. Rs. 50 lakhs, Rs. 1 crore etc.). These insurance plans enable policyholders to claim a higher sum for various medical charges.

High-value health policies seem like a good idea from a coverage point of view, but do you really require one? Let us look at some of the plus points and drawbacks of these policies:

Plus Points

  • One of the biggest advantages of such covers is that international treatment is compensated. If you regularly travel to foreign places with your family members then high-value covers are a good option for you. A high-value health insurance policy is certainly helpful if you are travelling abroad to seek treatment that is not available in India. The health insurance policy will take easily take care of your expenses for receiving medical treatments abroad.
  • Advancements in medical technology has enabled for better healthcare facilities. But to avail these facilities, you would have to shell out several lakhs of rupees. A high-value health insurance policy can help cover the cost of such treatment since the value of sum assured is high. This allows for greater protection for you and your family members.
  • A high-value health plan generally covers additional features along with the basic coverage features. Insurance companies may provide specialized services to customers like personalized consultation through relationship doctors, free health check-ups, OPD benefit and maternity benefits up to Rs. 1 lakh. Such plans have more comprehensive coverage features.


  • Given that the sum assured is high, these insurance products are quite expensive. It is rather difficult for a middle-class individual to avail these plans because of the high costs involved. Insurance companies generally target high net worth individuals when launching such products since they can afford to pay the high premiums.
  • Although high-value health insurance covers provide a comprehensive coverage option, they still contain common exclusions found in other health plans. Some plans come with a two-year waiting period for pre existing diseases. Insurance companies can also refuse to cover certain critical illnesses that are pre-existing to the policy.

Do you really need a high value health insurance policy?

To get treated at the best hospitals in metro cities, you can consider buying a policy of around Rs. 30 lakhs. Some of the top hospitals offer a package of Rs 20-25 lakhs for treating different health problems, like cancer and serious heart issues.

The question of whether or not to buy a high-value cover comes down to affordability and requirement. If you plan to go travel overseas for receiving medical treatment, you can buy a high-sum insured critical illness plan. But keep in mind that you would have to pay a large sum in premium. This may not be difficult for high net-worth individuals and hence they are advised to consider buying it. Individuals who cannot afford to pay the high premiums can buy regular insurance plans and select top-up options to enhance the cover. The cost that the policyholder has to bear will also not be high.

Whichever option you decide to choose, keep in mind that having an insurance policy to cover your health is necessary. Do not neglect buying it just because of the extra cost you have to bear. The benefits you get from an insurance cover are plenty. Refrain from simply assuming insurance plans are costly. You can find policies in the market that are pocket friendly.