Health Insurance Coverage Calculator
A health insurance policy should be big enough to pay for serious treatment without draining your savings. This calculator turns your own estimate of treatment costs into a target.
Results
Suggested cover today
₹12,00,000
- Where you stand
- Additional cover of about ₹7,00,000 suggested
- Additional cover suggested today
- ₹7,00,000
- Cover needed in the planning horizon
- ₹31,12,491
- Additional cover then
- ₹26,12,491
- Your existing cover
- ₹5,00,000
Covering 2 major hospitalisations at ₹6,00,000 each suggests ₹12,00,000 of cover today, growing to about ₹31,12,491 in 10 years with 10% medical inflation.
Show the calculation steps
- Cover target today = cost of a major treatment × number of events = ₹6,00,000 × 2 = ₹12,00,000.
- Medical costs rise 10% a year, so in 10 years the same care costs ₹12,00,000 × (1 + 10%)^10 = ₹31,12,491.
- Compared with your existing cover of ₹5,00,000, the gap today is ₹7,00,000 and in 10 years it is ₹26,12,491.
- The cost of treatment is your own estimate: ask hospitals in your city for typical costs of a serious illness or surgery. Check what your policy does not cover (sub-limits, co-payment, waiting periods). This is a planning aid, not a product recommendation.
Use local costs
Treatment costs differ a lot between cities and hospitals. Rather than guess, ask a couple of hospitals near you for typical estimates for serious conditions or surgery and enter the higher end.
Look beyond the sum insured
Check sub-limits on room rent and procedures, co-payment, waiting periods and exclusions, which can leave you paying more than the sum insured suggests. A super top-up policy is a common way to raise cover cheaply.
Formula
Suggested cover = Cost of a major hospitalisation × events to cover
Future need = Suggested cover × (1 + medical inflation)^years
Where:
- Medical inflation
- = The yearly rise in treatment costs
Example calculation
₹6 lakh per hospitalisation, two events, 10% medical inflation
Inputs
- Cost of a Major Hospitalisation
- ₹6,00,000
- Events to Cover
- 2 events
- Medical Inflation
- 10 %
- Planning Horizon
- 10 years
- Existing Health Cover
- ₹5,00,000
Result
- Suggested cover today
- ₹12,00,000
- Where you stand
- Additional cover of about ₹7,00,000 suggested
- Additional cover suggested today
- ₹7,00,000
- Cover needed in the planning horizon
- ₹31,12,491
- Additional cover then
- ₹26,12,491
- Your existing cover
- ₹5,00,000
Step-by-step
- Cover target today = cost of a major treatment × number of events = ₹6,00,000 × 2 = ₹12,00,000.
- Medical costs rise 10% a year, so in 10 years the same care costs ₹12,00,000 × (1 + 10%)^10 = ₹31,12,491.
- Compared with your existing cover of ₹5,00,000, the gap today is ₹7,00,000 and in 10 years it is ₹26,12,491.
Important notes
- This is a planning estimate, not a recommendation to buy a specific policy. Insurers assess income, age and health, and you should compare policies and read the terms.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How much health insurance is enough?
Enough to pay for a serious hospitalisation in your city, plus a margin for medical inflation.
Will an employer's health cover be enough?
It may end if you change jobs, so it is safer to hold your own policy as well.
What is medical inflation?
The rate at which healthcare costs rise, usually faster than general inflation.
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