Take Lower Health Insurance now and increase it in future ?

POSTED BY vaidup ON March 10, 2014 4:45 pm COMMENTS (4)


I already have a health insurance cover of 5 Lakh for my family provided by my employer. In addition to that the employer has also taken a bigger group floater policy which can be used any employee once their 5 Lakh cover runs out.

I am now considering to buy own health insurance cover. My question is – Is it sensible to keep my health insurance cover low for initial years and then increase it later. Because I will always be using the employer provided first and may not even use my own insurance cover. Then by keeping the cover small I can reduce premium which can in any case increased be later. Please suggest if this thinking is alright.

4 replies on this article “Take Lower Health Insurance now and increase it in future ?”

  1. ashalanshu says:

    Dear Vaid, as you understand this point, go ahead with a lower cover. Life is full of surprises and in case you are down with a permanent illness which can not be covered under your health policy’s T&C, the increased sum assured for such case’ll be useless.



  2. vijay says:

    If your tax deduction still provides for further ‘cushioning’ (80D), you might just as well go ahead with a higher sum assured. Otherwise, there are also options in top-up and super top-up plans that might be of interest to you…

  3. ashalanshu says:

    Dear Vaid, are you aware that each increase in sum assured is considered for existing illness clause?



    1. vaidup says:

      Hi Ashal,

      Not clear what your point is here. However, I understand that waiting period under the existing illness clause will only apply for the increased sum assured and not for the initial sum assured.

      My point is when I have the employer provided cover and some basic sum assured on my own. So when I increase it in future the waiting period will only apply for the increased portion, which in my opinion should be okay unless I am completely missing something here.


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