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Do You Really Need A Family Health Insurance Policy of Rs. 1 Crore?

Published On Jun 25, 2021 10:00 AM By InsuranceDekho

The growing rate of pollution is making us vulnerable to critical diseases and their treatment is also getting expensive due to the rise in inflation. Therefore, people are more inclined towards purchasing a health insurance policy for themselves and their family, that covers a large sum of money. These days, a maximum of Rs. 1 Crore can be assured in your health insurance policy, but accordingly, the rate of premium also increases, which might not be affordable for certain sections of society. 

Family floater plans can cover all the members of your family including your spouse, children, and dependent parents. A cover of Rs.15-20 Lakh is enough to cover the expenses of hospitalization of your family members, but certain critical diseases like cancer need special treatment which is expensive and difficult to afford without insurance for a middle-class family.  

Do You Really Need A Family Health Insurance Policy of Rs. 1 Crore?

Reasons To Go For A Higher Sum Assured 

These days it is pretty evident to purchase a health insurance policy with a higher sum assured, as the costs of quality treatment are increasing rapidly. Let us look at some major reasons to buy a health insurance policy of high sum assured: 

  • You can cover all the members of your family, by having enough for each, in case of hospitalization for general medical purposes or critical illnesses. 
  • Expenses for surgeries and treatments like organ transplantation can be taken care of by using these high sum assured policies. 
  • You can also afford overseas medical expenses if the policy includes them. 
  • It relieves your stress as it protects you against the draining of your monetary savings. 

Do You Need A Rs. 1 Crore Health Insurance Plan?

The need for a particular sum assured under a health insurance policy depends on several factors like the number of members in the family, pre-existing diseases, critical disorders, age of the members, and many more. Also, there are certain cases when you can go for a Rs. 1 Crore plan and when you must avoid such expensive plans. 

When to Avoid Rs. 1 Crore Health Insurance? 

Having more money as a safety against the high cost of treatments is a good thing, but only until you can afford it. You can get Rs. 1 Crore health insurance if you can pay an amount of Rs. 50,000 approximately every year as a premium. Sometimes, this amount becomes highly unaffordable for certain sections of people, and hence, they must avoid getting such plans and instead choose plans with a maximum sum assured of up to Rs. 20 Lakh in their family floater health insurance policies. 

When To Choose Rs. 1 Crore Health Insurance?

You can purchase Rs. 1 Crore health insurance policy under the below-mentioned cases, if:

  • You can afford a high rate of premiums. 
  • You have a family history of critical illness disorders and might require expensive treatment in the near future.
  • You are above 40 years of age, as when in this age group, people are more vulnerable to get critical diseases. 
  • You are the sole breadwinner of the family. This will reduce the financial burden on you while your family members undergo hospitalization or treatment of any sort. 
  • You work in a stressful environment. It puts you at risk of life-threatening diseases thus, making you vulnerable to contract a critical disorder.  


From the above arguments, we can conclude that the choice to purchase an Rs. 1 Crore Health Insurance lies on the factors that determine our current situation like financial availability, pre-existing disorders, or any family history of critical illnesses. If you cannot afford it then you must not buy an expensive sum assured health insurance policy for the sake of benefits as it might lead you to a debt trap or financial draining of savings. You can compare various plans which offer attractive family floater benefits at negotiable prices and consider buying them. But, if you can pay a large sum of money as premiums, and have multiple members in the family under a single cover, then you can buy the Rs. 1 Crore health insurance policy. 

Also Read: Importance of Health Insurance for Family

Who Should Choose Family Health Insurance Plans?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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