Sneak Peak into the Cost of Health Insurance

Health Calculator to help you plan better

You didn’t come this far to stop

Sequeira's Health Calculator to help you plan your Health Insurance Coverage

The air of financial complacency around healthcare in India is rapidly dissipating, replaced by a stark and undeniable reality: medical inflation is a colossal, silent threat to your savings. For those living in major metropolitan hubs like Bengaluru, Mumbai, Delhi, and Chennai, the calculator has begun to flash an alarming warning signal that can no longer be ignored.

The Alarming Reality of Medical Inflation

While the average annual general inflation in India hovers around manageable levels, the cost of healthcare services is skyrocketing. Multiple reports confirm that medical inflation in India has been outpacing general inflation significantly, averaging an annual rate of 10% to 14% in recent years—one of the highest in Asia

The situation becomes especially precarious when examining critical illnesses. The combination of advanced medical technology (often imported and expensive), a rising burden of lifestyle diseases, and increasing demand for top-tier private healthcare services has pushed the inflation rate for treatments like cancer, organ transplants, and complex cardiac procedures upwards of 15% in major cities.

The Cost Today vs. Tomorrow

To put this into perspective, a major medical procedure that costs ₹10 Lakh today could cost approximately ₹20 Lakh in just five years, assuming a conservative 15% annual inflation rate for critical treatments. A decade from now, that same procedure could easily breach the ₹40 Lakh mark.

This exponential increase highlights a crucial point: the health insurance policy you bought five years ago, which seemed perfectly adequate, is likely already insufficient to cover a major medical event today.

The Peril of Being 'Under Insured'

The most common mistake Indian consumers make is opting for a health insurance plan based on an arbitrary, low Sum Insured—often just enough to meet tax-saving requirements or cover basic annual hospitalisations. This is the financial equivalent of fighting a wildfire with a garden hose.

Why Under-insuring is a Dangerous Gamble:

• Skyrocketing Treatment Costs: The cost of quality treatment in a metro city's private hospital is prohibitively high. A heart bypass surgery or cancer treatment, for instance, can cost well over ₹10 Lakh to ₹20 Lakh or more. An under-insured policy of ₹5 Lakh or ₹7 Lakh will be exhausted almost instantly, leaving you to bear the entire remaining amount out of pocket.

• Depleting Life Savings: If your policy runs out, you are forced to dip into your carefully accumulated savings—your children's education fund, retirement corpus, or down payment for a home. Health emergencies are the single biggest cause of family debt in India.

• Sub-optimal Care: When faced with an inadequate Sum Insured, families are often forced to choose between settling for lower-quality care, waiting for treatment, or moving to a different, less-equipped hospital, potentially compromising the patient's recovery.

• The Power of Top-Ups: Instead of relying on a small base policy, tools like Top-Up and Super Top-Up plans are a highly effective and cost-efficient way to increase your overall coverage to the recommended level (e.g., ₹20 Lakh or more) without a proportionate increase in premium.

  🛡️ How to 'Inflation-Proof' Your Health Cover

  The solution is not to simply buy a policy, but to buy a sufficient policy that factors in future inflation. Financial experts often recommend a minimum health cover of ₹10 Lakh to ₹20 Lakh for families in major metros

  Here are the key takeaways for smart policyholders:

  1. Factor in Inflation: When calculating your required Sum Insured, don't just look at today's cost. Consider what that major procedure will cost 10 years from now at a 15% inflation rate and insure accordingly.

  2. Go for a Higher Cover: Start with a substantial base policy. If your current policy feels small, upgrade it or combine it with an affordable Super Top-Up plan to achieve a Sum Insured of ₹20 Lakh to ₹30 Lakh.

  3. Start Early: Buying health insurance when you are young and healthy locks in a lower premium and avoids exclusions for pre-existing diseases. The premium hike with age is significant.

  In a world where a sudden illness can financially cripple even a well-off family, your health insurance is not a luxury or a tax-saving tool—it is the single most important instrument for protecting your financial future. Use your calculator wisely today, so you don't face a financial crisis tomorrow.