India's runaway medical inflation, among the highest in Asia at around 14 percent annually, is outpacing general inflation, making healthcare increasingly unaffordable for most households.
The sharp rise means that healthcare costs, from diagnostics to hospitalisation, are growing much faster than incomes for most households.
A heart bypass surgery can cost between Rs 3 and Rs 6 lakh, a bone-marrow transplant from Rs 15 to Rs 25 lakh, while a lung transplant can cost upwards of Rs 30 lakh and in some cases approach Rs 40 lakh.
These figures underline how a single procedure can exhaust a substantial Rs 30-lakh cover, leaving families with limited options and forcing them to dip into savings or even borrow. For many households, the financial shock of a single medical emergency can derail years of planning.
Government data and independent estimates both point towards double-digit medical inflation, with projections of around 13 percent for 2025.
Some states have begun mandating hospitals to display treatment costs transparently to check hidden charges but still out-of-pocket spending in India is much higher than global standards.
Also read: Hospitals vs insurers: All you need to know about the ongoing tiff
Why unlimited cover
This is where health insurance with an unlimited sum insured comes into play. Unlike traditional policies that cap the maximum claim amount, these plans remove the ceiling altogether. With such coverage, the rising costs of advanced procedures, prolonged hospitalisations, or multiple treatments over time are not the family’s burden to manage.
The offerings
Even relatively large covers of Rs 20 to Rs 30 lakh can look inadequate over a 15- or 20-year horizon when medical inflation runs in double digits.
An unlimited plan can serve as a defence against this risk, ensuring that a single episode of illness does not consume an entire cover amount.
It can also eliminate the anxiety that families often face when they need to decide between the best treatment available and the financial repercussions of opting for it.
By eliminating the cap, these plans protect both health and financial stability, making sure that no one has to compromise on care due to cost considerations.
The cost of unlimited health insurance
For a person in their early 30s, annual premium starts from Rs 13,000. For those aged around 50, the premium can start at Rs 25,000. These ranges are illustrative but show that such protection is not reserved only for the very wealthy. What matters is understanding how premiums escalate with age and inflation, as well as preparing for increases over the long term.
Should you consider it?
Unlimited coverage is particularly relevant for certain groups.
For example, families with a history of critical illnesses such as cancer, cardiovascular disease, or organ failure face treatment costs that can easily soar into several lakhs and sometimes cross a crore.
For them, conventional covers may simply not be sufficient. Individuals in their 30s and 40s may also find it worthwhile to lock in premiums early, since costs rise with age and health conditions.
For those living in metro cities, where medical care is more expensive, unlimited cover offers a buffer against the unpredictability of hospital bills.
Frequent travellers, who are more exposed to health risks across different geographies, also stand to benefit from the added protection.
(The write is the chief business officer of Policybazaar.com)
Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with a financial advisor before taking any decisions.
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