Free · 2 minutes · India-specific
The average Indian family has ₹3.5L in health cover and ₹25L in life cover. Medical inflation is 14% per year. In 10 years, ₹3.5L won't cover a 3-day hospital stay. Find out exactly what you actually need.
14%
Annual medical inflation (India)
₹3.5 L
Average Indian family health cover
₹25 L
Average Indian life cover (vs. need)
1 in 4
Indians have zero personal health cover
Gross annual income — the primary driver of your cover requirement
Determines your income multiplier — younger means higher multiplier
₹15L per child is added as education fund
Home loan + car loan + personal loan — family should not inherit your debt
Employer GTL + any personal term or endowment policies
FD, MF, PPF, stocks — assets your family can access. Property excluded.
Multiplier applied: 20× your income. Age 30 → base 20×.
Recommended life cover
₹2.5 Crore
Human Life Value approach · non-smoker indicative
Indicative annual premium
₹24,000–₹29,500 / year
For a 30-year-old non-smoker · exact premiums depend on health, insurer, and tenure
Reminder: Term insurance premium is fixed at the age you buy. A 30-year-old buying today pays less every year than a 33-year-old buying the same cover later.
The trap most employees fall into
Your employer's GMC ends the day you leave. A 30-day gap between jobs during a medical emergency could cost ₹5–10L. Personal health cover = continuity. It also covers you for OPD, specialists outside your employer's network, and family members your company plan excludes.
The term insurance math
A ₹1 crore term plan for a 28-year-old non-smoker costs ₹700–₹900/month. That's less than a Netflix + Swiggy subscription. And it ensures your family can maintain their lifestyle and clear your liabilities — without your income.
Employer group health insurance is a valuable benefit — but it has structural limitations that leave significant gaps in your financial protection.
Group Medical Cover is tied to your job. The moment you resign, are laid off, or retire, you lose cover — often with zero notice period for the insurance.
Most employer GMC policies cover inpatient hospitalisation. Regular doctor visits, diagnostics, physiotherapy, and specialist consultations are out of pocket.
Most employer group plans cover only the employee (and sometimes spouse and children). Senior parents — who need cover the most — are excluded.
Cancer treatment, organ transplants, and cardiac procedures often cost ₹10–30L+. Standard GMC limits of ₹3–5L are woefully inadequate for these events.
| Age bracket | Multiplier | Example: ₹12L income → cover |
|---|---|---|
| 25–30 | 20× | ₹2.4 Cr |
| 31–35 | 18× | ₹2.16 Cr |
| 36–40 | 16× | ₹1.92 Cr |
| 41–45 | 14× | ₹1.68 Cr |
| 46–50 | 12× | ₹1.44 Cr |
| 51+ | 10× | ₹1.2 Cr |
Reduce multiplier by 4 if you have zero financial dependents. Add ₹10L for 2 dependents; ₹20L for 3 or more. Plus: 100% of outstanding loans + ₹15L per child for education.
Rarely. Employer GMC (Group Medical Cover) covers hospitalisation only — it excludes OPD visits, specialist consultations outside network, and preventive care. More critically, it ends the day you leave the job. A 30-day coverage gap during a job transition with a medical emergency could cost ₹5–10 lakh. Personal health insurance provides continuity and covers the gaps your employer policy misses.
Day 1 of employment — not after a health event. Personal health policies have waiting periods (typically 2–4 years) for pre-existing conditions. The younger and healthier you are when you buy, the lower the premium and the sooner your waiting periods complete. Buying at 25 versus 40 can mean a 2.5× difference in annual premium for the same cover.
The standard rule is 15–20× your annual income, adjusted for dependents and liabilities. If you have ₹50L in outstanding loans, two dependents, and minimal savings, a ₹1 Cr term plan may be insufficient. Use the Human Life Value (HLV) approach: income × multiplier + outstanding loans + children's education fund − existing cover − liquid savings.
If your employer provides ₹3–5L base cover, a super top-up is significantly more cost-effective. A super top-up activates after your deductible (the base cover threshold) is crossed. For example, a ₹10L super top-up with ₹5L deductible means the insurer pays once your total claim exceeds ₹5L — protecting you against catastrophic hospitalisation at a fraction of the cost of a fresh base policy.
The younger the better — premiums lock in at the age of purchase and stay constant for the entire policy tenure. A ₹1 Cr term plan at 25 costs roughly ₹700–₹800/month for a 30-year term. The same cover at 35 costs ₹1,100–₹1,400/month, and at 40 it's ₹1,600–₹2,000/month. Every year you delay costs you money permanently for the life of the policy.
For employers
Group Health Insurance from Onsurity covers your employees and their families — from Day 1, with no waiting periods for group members. Plans start at ₹199/employee/month. Premiums are 100% tax-deductible for the company and tax-free in employees' hands.