While nearly half of India’s population is covered by a health insurance or financing scheme, many families remain underinsured, with existing cover often falling short of the cost of serious medical treatment. Care Health Insurance highlights the need for families to regularly review their health insurance as medical costs continue to rise.
According to Union Health Ministry estimates, households continue to fund 43.4% of India’s total health expenditure out of pocket. National health assessments also indicate that out-of-pocket spending remains a significant component of hospitalisation costs, underscoring the gap between having insurance and having adequate financial protection.
A ₹2–5 lakh policy may no longer be sufficient for major treatments, with procedures such as liver transplants, cancer treatment and complex cardiac care potentially costing several lakhs. Employer-sponsored group policies may also have coverage limits and may not provide continued protection after a job change.
Care Health Insurance recommends that families review their sum insured annually, understand room-rent limits, co-payments, sub-limits and exclusions, and avoid relying solely on employer-provided cover. Families can also consider super top-up plans to increase protection against high-cost treatments.
Coverage should also be reviewed for parents and dependents, particularly where a single family floater could be exhausted by one member’s treatment.
With healthcare costs continuing to rise, adequate health insurance is increasingly becoming an important part of financial planning. Regularly reviewing coverage can help families protect savings, reduce reliance on debt and improve financial resilience during medical emergencies.
