Young, earning and healthy? Here's the right health cover for you

Experts break down how much cover young earners really need and how to strike the right balance so you don't overpay or, worse, stay underinsured when medical bills hit

For many young earners, health insurance is often an afterthought. With company-provided covers and good health on their side, buying a personal policy tends to get pushed down the priority list. But experts say this could be a costly mistake, especially with healthcare inflation soaring close to 14 per cent annually.

 

Look at reality, not a random number

“There’s no one-size-fits-all number when it comes to health insurance,” says Manju Dhake, head of insurance advisory practice at 1 Finance. She advises evaluating factors like city of residence, family health history, and lifestyle to estimate realistic costs.

 

A practical way to start, she adds, is to “look at the highest hospital bill you’ve seen in your family or circle and add a layer for inflation, that’s a realistic base cover.”

 

Vishal Gupta, chief executive officer of PhonePe Insurance, echoes that healthcare costs vary drastically by city. “In metros, medical expenses are higher, so aim for a larger cover. If you have a sedentary job or family history of illnesses like heart disease or diabetes, consider adding critical illness riders,” he says.

 

Don’t rely solely on company cover

Young professionals often make the mistake of depending only on their employer’s health policy or choosing the cheapest plan. Dhake points out that “corporate covers end the moment your employment does and rarely keep pace with medical costs.”

 

Siddharth Singhal, business head, health insurance at Policybazaar.com, adds that delaying a personal plan can prove expensive later. “Premiums are much cheaper when you’re younger and healthier. Waiting can mean paying more and facing exclusions for pre-existing conditions.”

What a decent cover costs in your 20s

For someone in their 20s, a Rs 10-20 lakh cover typically costs between Rs 6,000 and Rs 25,000 a year, depending on the insurer and add-ons.

 

• Gupta pegs a Rs 10 lakh plan at Rs 6,000–Rs 10,000 annually. 
• Singhal places a Rs 10–20 lakh plan at Rs 7,000–Rs 11,000. 
• Dhake notes it could go up to Rs 25,000 for broader policies.

 

Experts agree it’s best to start with a Rs 5–10 lakh base plan and add a super top-up later. “It’s a smart way to stay adequately protected without straining your budget,” says Dhake.

 

The sweet spot: a 25-year-old in Delhi

If you’re 25, living in Delhi, and healthy with no pre-existing diseases, Dhake suggests “a Rs 10 lakh base cover with a Rs 10 lakh super top-up” as a balanced choice. Singhal recommends a Rs 15 lakh plan with a Rs 90 lakh top-up for robust protection without overspending, while Gupta believes a Rs 10–20 lakh standalone plan works well for most.

 

Why starting early pays off

All three experts stressed that buying early locks in lower premiums, clears waiting periods sooner, and helps build a no-claim bonus. More importantly, it keeps you financially secure when the unexpected strikes, a lesson Dhake has seen play out in real life.

 

“One client with only a Rs 3 lakh corporate cover had to pay Rs 6 lakh out of pocket after surgery.

 

Another with a Rs 15 lakh personal policy paid nothing and recovered stress-free,” she recalls.

 

The right health cover isn’t about buying the biggest number you can afford, it’s about building a long-term safety net early, so rising medical costs don’t derail your financial future.