Is a 40-50% hike in annual health insurance premium on renewal possible?

livemint.com:

—Name withheld on request.

Unfortunately, there’s currently no cap on health insurance premium increases in India. This, indeed, can be a burden, particularly for older individuals. While premiums can rise significantly year after year, the cost of healthcare itself is also climbing. And, without health insurance, managing unexpected medical bills can be even more challenging.

Until there’s improved public healthcare or regulations on private hospitals in India, health insurance premiums are likely to continue increasing. Here’s how you can manage:

• Establish a dedicated fund for premiums: Consider creating a dedicated fund specifically to cover future health insurance premiums. This makes budgeting for premiums more manageable, especially since health insurance is typically cheaper than out-of-pocket hospital bills.

• Maintain a backup fund: Health insurance might not cover everything, like routine doctor visits, etc. Creating a separate savings fund for these extra costs is essential, especially as we age, and our healthcare needs often increase.

• Explore super top-up plans: Consider buying a ‘super top-up’ plan alongside your base plan. Super top-up plans typically have lower premiums and only kick in after you’ve reached a certain threshold (deductible). So, even if the base plan becomes expensive over time, the super top-up may remain more affordable. Let’s say you have a base plan that covers up to ₹10 lakh and a super top-up that covers anything above ₹10 lakh. If most of your claims are under ₹10 lakh, the premium for the super top-up will remain low. And if the base plan’s premium gets really high, you could even drop it and keep the super top-up for major expenses. Sure, paying ₹10 lakh out of pocket might