What is the Premium for 20 Lakh Health Insurance?

Nowadays, the number of complex and life-threatening diseases has significantly increased. Accessing treatments for such diseases has also become expensive. In such cases, a reliable health insurance plan with adequate coverage is crucial to afford high-quality healthcare services.

Health insurance coverage of ₹20 lakhs or more is often advised to ensure financial security in unforeseen circumstances. While the premium of a ₹20 lakh health insurance policy may seem high, it is determined by several factors. Keep reading to know more.

Factors Affecting the Premium of a 20 lakh Health Insurance Policy

Several factors, including age, health condition, lifestyle, etc determine the premium of the ₹20 lakh health plan. It can range from ₹12,000 for younger people to ₹50,000 for older people or senior citizens.

Here are the factors considered to determine the premium:

● Age and Medical History

Young and healthy people are initially not susceptible to disease, but as they age and become more prone to illness, premiums tend to be higher. Apart from age, family medical history also matters.

If they have any pre-existing medical conditions or a family history of any critical illnesses like cardiac issues or cancer, then the premium can be higher.

● Lifestyle Habits

Certain lifestyle habits like smoking, drinking, etc, can increase the risk of health issues. Apart from these, unhealthy eating habits can increase the risk of diabetes, hypertension, and obesity. In either case, premiums can be higher.

● Overall Coverage

The extent of coverage majorly affects the amount of premium. If the entire family is covered under one plan, additional riders are required to address the healthcare needs of all members, which may result in a higher premium.

● Co-payment Clause

Opting for this clause can reduce the premium amount as the policyholder agrees to pay a percentage of medical expenses during the claim process.

● Deductible Amount

If the policyholder is willing to pay a higher amount towards the medical expenses during the claim process, then the premium can be lower. Thus, the higher the deductible, the lower the premium amount.

● Location

Medical costs vary widely by location. In semi-urban and urban areas, the medical costs are higher than in rural areas. The premium amount will vary based on the policyholder's location.

Is a ₹20 lakh Health Insurance Cover Enough?

Given current medical costs, a ₹20 lakh health insurance plan can provide sufficient coverage for most healthcare needs. It can cover major hospitalisations, surgeries, ICU (intensive care unit) charges, and consultations.

Investing in a reliable health insurance plan can ensure peace of mind during any urgent medical situations. For example, Star Health Insurance has reported a cashless final approval rate of 96% within 3 hours across over 16,000 network hospitals nationwide.

Opting for a ₹20 lakh health insurance policy can cover most of a family's modern healthcare needs. However, if it's a metro city with higher medical expenses, consider adding a top-up or super top-up plan to the existing family floater plan. It will provide adequate coverage without a significant increase in the premium.