Last Updated on September 23, 2025 at 9:09 am
My health insurance with United India usually gets renewed in September each year, a good month before the renewal date. This year, the agent asked me to wait until September 22nd, when the premium will be free of GST. I thought I would document the costs. I do not claim that my insurer is the best or that my policy choices are prudent. It is what it is.
Note: The premium depends on age, personal health history (which my mother and I have a bucket load of), and, of course, the sum insured. Even if the premium of your policy looks affordable today, it can quickly escalate if the insurer has a bad claims experience, and of course, naturally, due to age. I have had two such claims increase over the years (from 2006 onwards)
Private insurance premiums are significantly more complicated in the way they factor in claims. They would be happy to roll the red carpet now when you are young and their market share is low. As both increase, expect to pay higher and higher premiums. Also, wrt portability, you can run, but you cannot hide!
All of us (private or public) will pay huge premiums over time. Think of it as a fee to protect your net worth; even if you don’t claim for years, it is not a “waste” of money.
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We have four main* policies, all from United Indian (contiguous from 2006). We have made multiple claims – three times for my mother, twice for me. Often readers ask, “Are you happy with your insurer?”. Yes, we are because we have the right expectations of them. Over time, the policy features and services have significantly improved. So no complaints. Besides, I purchased this policy when I knew nothing about health insurance. So yes, no complaints at all.
* My wife and son also have policies from Generali Central Insurance Company (formally known as Future Generali India Insurance) and a super top-up from Liberty Insurance. This was when I was worried about room rent sub-limits. Due to my health history, I could never get private insurance.
Thankfully, United India has “effectively” removed the room rent sublimits on our policies and significantly enhanced the sum insured limits (at least for me, my wife and my son). So while we keep the private policies alive, United is the main player.
Read more: New features introduced in United India Insurance Family Medicare Policy (dated Sep 2021).
Also see:
- United India launches Super Top Up Policy with 95 lakhs sum insured
- United India Revises Health Insurance Policy Terms w.e.f Sep 2023
- Why we purchased United India Super Top Up Policy with 95 lakhs sum insured
Details of the policies
- Family Medicare Policy for Amma (78), Rs. 6 Lakh cover. Premium Rs. 62,360 after no-claim discount Rs. 56,124.
- Family Medicare Policy for Pattu (51), wife (49) and son (15): Rs. 25 Lakhs individual cover. Premium: Rs. 33,511 for Pattu; Rs. 27,897 for wife; Rs. 5,838 for son. Total Rs. 54,568 (with family and no-claim discount).
- Super Top Up for Amma (age 78): 15 Lakhs, covered with a 5 Lakh deductible. Premium: 17,820.
- Super Top Up floater cover for Pattu (51), wife (49) and son (15): Rs. 95 Lakhs coverage with a Rs. 5 Lakh deductible. Premium: Rs. 22,524.
So that is a total of Rs. 1,51,036. The removal of GST has resulted in a saving of Rs. 27,186. With GST, the total premium last year was Rs. 1,63,642.
You may wonder why a base policy of Rs. 25 Lakhs, when the super top-up covers costs between Rs. 5 Lakhs and Rs. 95 Lakhs. I prefer to minimise our reliance on the super top-up policy whenever possible.
There is, of course, a huge price to pay for this. Notice that my mother’s premium for her base policy is 10.4% of her sum insured. A 78-year-old, if she is given a 25L cover, will have to shell out Rs. 2.6L as premium and that is today! Imagine the cost 27 years from now when a 51-year-old hits 78 (with his spouse just two years younger)!!
A high base sum insured is extremely expensive over time, but if our net worth is sufficient and invested right, it should be okay. As long as one does not consider this as a “waste”. It is all in the mind. As the great Tamil poet Kannadasan said, “If you think it is, it is; else, no.” For those who know Tamil – Undendraal adhu undu
Illai endraal adhu illai (from the song, Ullam enbadhu aamai, from the movie, Parthal Pasi Theerum, 1962).
You may also wonder why buy a base policy of Rs. 25L and only use a deductible of Rs. 5L? Why not Rs. 25L as deductible? That should be a much cheaper policy. Yes indeed. United offers a maximum sum insured of 75L with a deductible of 25L. 95L sum insured with a Rs. 5 Lakh deductible. Please don’t ask me why. I figured I’d get the higher cover while you can before another illness strikes (and I was proved right!)
To pay the premium each year, I use a simple RD that matures about one month before policy renewal. And yes, each year I increase the RD amount! Please don’t ask me, “Is there a more tax-efficient (or interest-efficient) way to save?” There isn’t – not unless you are ready to face loss. We need to get our priorities right.
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