Scam alert? ₹5 crore insurance coverage just for ₹1,000 a year

One of my friends offered a top-up insurance plan. The plan covers ₹5 crore sum insured sans a deductible of ₹20 lakh. This will cost around ₹1,000 every year.

- Abhishek Bondia

A top-up plan is an effective way to enhance your health insurance coverage. The cost of a top-up plan is significantly lower than a regular health plan. The cost range you described is indeed offered in the market. However, while buying the plan, ensure you are paying via a secured link to the insurer's account. The primary reason a top-up plan is cost-effective is the deductible. The average claim size in health insurance is less than ₹1 lakh. Moreover, claims larger than ₹20 lakh are rare. The insurer builds this low incidence rate into its pricing. When this policy is taken up by many users, the corpus becomes self-sufficient and economically viable.