What you actually need in a health policy
A health insurance policy reimburses hospitalisation expenses (or pays the hospital directly via cashless). For most urban Indians, ₹10 lakh sum insured is the practical minimum given private hospital rates. Beyond the sticker price, the things that matter: room rent caps (avoid these), disease-wise sub-limits (avoid these too), pre-existing disease waiting period (shorter is better), no-claim bonus, and the network hospital list near you.
A 5-day ICU stay at a Tier-1 metro hospital today runs ₹4 to ₹8 lakh. A ₹5 lakh policy with a 1% room rent cap means even if your room costs ₹6,000 (the cap pays ₹5,000), every other cost (drugs, surgeon, ICU) is proportionally cut by the same ratio. Your ₹5 lakh cover effectively pays out ₹4 lakh and you write the rest.
Relying only on your employer's group cover. It vanishes the day you switch jobs or get laid off, exactly when you cannot afford a new policy with fresh waiting periods. Always carry a personal policy alongside.
A 60-second lesson on this, with a worked drill in rupees, lives inside the Finlo app. Free, forever, on the basics.