I am working in an IT company and have medical insurance coverage to all family members up to 10 LPA. Apart from company insurance I had taken Bharati Axa Insurance health Insurance for 15 LPA for my family members but 2022 March it got expired...

I am working in an IT company and have medical insurance coverage to all family members up to 10 LPA.

Apart from company insurance I had taken Bharati Axa Insurance health Insurance for 15 LPA for my family members but 2022 March it got expired and they moved to ICICI Insurance.

At present that insurance is closed. I would like to take a small insurance of 2 to 5 LPA per annum and continue till lifelong with increase in the sum assured without any extra payment on yearly basis and free medical checkup every year and premium to be 5K to 10K per annum.

I am 46 years old.

Ans: Hi Sunil, there are policies in the market who will provide you with the said coverage within the said premium grid. You can contact us at 02248971018 to explore the plan details or connect directly with an insurer of your choice to know of the various policies and plan as per your requirement.

Ans: You have taken a wise and responsible step by thinking about family health insurance now. At 48, it is very important to secure medical protection beyond company cover. Your awareness about misleading sales practices is also right. Many people buy policies without understanding coverage limits, waiting periods, and exclusions. Let us carefully analyse your situation and guide you with a 360-degree approach to select the right health insurance plan for your family of three.

» Importance of Having Independent Health Insurance

Company health insurance is helpful, but it is temporary.

It stops once you leave or retire from your job.

A personal health insurance policy continues lifelong.

Medical costs in India are rising faster than inflation.

A single hospitalisation can easily cost Rs 3 to 10 lakh.

Hence, a family policy ensures full protection even after job loss, change, or retirement.

» Understanding Your Current Cover

You are covered by a company group health plan for Rs 2 lakh.

That is too low for a family of three today.

A small surgery or private hospital stay can consume this limit fast.

Once the company cover is used, you may need to pay from your pocket.

So, personal family floater health insurance is essential.

» Ideal Coverage Amount

At your age, a base cover of Rs 10 lakh for family floater is ideal.

A top-up or super top-up plan can be added for Rs 15–20 lakh more.

Together, you get Rs 25–30 lakh total protection at low cost.

A base plan covers day-to-day hospitalisation.

A top-up covers large or multiple claims in a year.

This combination keeps your premium reasonable and coverage strong.

» Choosing Family Floater or Individual Plan

A family floater plan covers all members under one sum insured.

It is cheaper and convenient for a young family.

Since your wife is 41 and son is 5, a floater plan fits well.

The premium depends on the eldest member’s age, so it will be based on your age.

Individual plans are better only when there is a wide age gap or health issue in one person.

You can start with a floater now and add individual plans later if needed.

» Key Features to Check in a Good Policy

When comparing policies, focus on these core features instead of marketing offers:

Lifelong renewability: Ensure policy renews lifelong without age limit.

No claim-based loading: Premium should not rise just because you claimed.

Room rent limit: Prefer plans without sub-limits on room rent.

Pre and post-hospitalisation cover: Should cover at least 60 days before and 90 days after hospitalisation.

Daycare procedures: Should cover all daycare treatments, not a limited list.

No capping on diseases: Avoid policies that restrict specific illness costs.

Restoration benefit: Should automatically restore sum insured if used in a year.

Cashless network: Must have a large network of hospitals near your area.

Ambulance and domiciliary care: Should include both.

These points matter more than just low premium or cashback offers shown on comparison portals.

» Understanding Waiting Periods and Pre-existing Disease Cover

Every insurer keeps a waiting period for pre-existing diseases, usually 2–4 years.

It means such conditions are covered only after that period.

Some insurers offer shorter waiting periods or buyback options.

Choose one with minimum waiting period.

Also, check the initial waiting period of 30 days for general illness.

Accidental hospitalisation is usually covered from day one.

» Evaluating Claim Process and Customer Service

Many people face problems during claim time, not while buying policy.

Choose an insurer with proven cashless claim approval process.

Ask about their claim settlement ratio.

A good insurer should have 90% or more cashless claim success.

Also, check their grievance handling speed.

Reading genuine customer reviews (not ads) can help understand real service quality.

» Comparison of Plan Types

Base Health Insurance Plan: Gives full protection for normal hospitalisation.

Super Top-up Plan: Extends coverage at low cost after base amount is used.

Critical Illness Plan: Provides lump sum on diagnosis of major diseases.

For you, base plus super top-up plan is enough now.

Later, after age 55, you can consider adding a small critical illness cover.

» How to Avoid Getting Misled by Insurance Sellers

Never buy a policy just because of a low premium or gift offer.

Read the policy brochure carefully.

Focus on inclusions and exclusions.

Avoid agents who hide waiting period or sub-limit details.

Always buy from a Certified Financial Planner or registered insurance intermediary.

They explain in simple language and help you select need-based coverage.

Online comparison sites only show prices but not suitability.

So, you need professional guidance, not automated ranking.

» Suitable Coverage Strategy for Your Family

You can buy a Rs 10 lakh family floater base plan now.

Add a Rs 20 lakh super top-up policy from same insurer for seamless claim.

Include coverage for maternity and newborn care if planning second child.

Ensure coverage includes your wife’s and son’s hospitalisation, dental surgeries, daycare, and paediatric care.

Select a policy with annual health check-up benefit.

This will help you maintain regular health tracking.

» Premium Payment and Tax Benefits

Premium paid for health insurance qualifies for tax deduction under Section 80D.

You can claim up to Rs 25,000 per year for self, spouse, and children.

Paying by online transfer or card helps maintain valid proof for claim.

Avoid monthly premium options as they may cost more than annual payment.

» Evaluating Co-pay and Deductibles

Co-pay means you share part of hospital bill, usually 10–20%.

Some plans apply it above certain age or for specific treatments.

Prefer policies with zero or minimum co-pay.

Deductible applies mainly in top-up plans.

If your base plan covers Rs 10 lakh, keep deductible same for super top-up.

This ensures full coverage continuity without confusion.

» Importance of Health Declaration Honesty

Always declare your medical history truthfully when applying.

Even small ailments like high BP or sugar must be declared.

Non-disclosure can lead to rejection later.

Once declared honestly, the company cannot deny claim after waiting period.

» Family Health Planning Beyond Insurance

Maintain healthy lifestyle habits to reduce medical risks.

Eat balanced food and exercise at least 30 minutes daily.

Avoid smoking, alcohol, and stress.

Take regular health check-ups even if not covered.

Build a small health emergency fund for non-insured expenses like medicines or diagnostics.

» Understanding Why Early Purchase Matters

Premiums rise sharply with age after 45.

Buying now locks your health history and age slab.

If you wait till 50 or 55, premiums may be double.

Some diseases may start by then, making coverage harder.

So, early purchase ensures lifelong protection without exclusions.

» Policy Renewal Discipline

Never skip annual renewal.

Even one day delay can cause loss of continuity benefits.

Keep renewal date reminder in phone calendar.

Always pay directly through official insurer portal or trusted intermediary.

» Managing Health Insurance with Future Goals

Health insurance is not an investment. It is risk protection.

Do not mix with ULIPs or endowment policies.

Keep it separate from savings and mutual funds.

As income grows, you can enhance cover every few years using top-ups.

Also, review coverage every three years for family needs and inflation.

» Common Mistakes to Avoid

Selecting cheapest plan without checking hospital network.

Ignoring disease sub-limits and waiting periods.

Forgetting to check cashless tie-up in your city.

Not reading exclusion list carefully.

Mixing critical illness plan with hospitalisation plan wrongly.

Assuming corporate policy is enough for lifetime.

» How to Evaluate Insurer Reliability

Choose insurer with long experience in health segment.

Check claim settlement ratio, ideally above 95%.

Review their in-house claim team instead of third-party administrator.

Insurers with in-house claim management usually offer faster approvals.

Also, ensure they have digital claim intimation and mobile support.

» Role of Certified Financial Planner in Policy Selection

A Certified Financial Planner evaluates policies based on your health, age, and family.

They assess premium affordability, coverage adequacy, and claim process.

They also help renew and track changes every year.

This avoids confusion from online aggregators who just compare prices.

Hence, working with a CFP ensures clarity and long-term protection.

» Reviewing Cover Every Few Years

Inflation in medical cost is about 10–12% yearly.

Rs 10 lakh today may not be enough after 8–10 years.

Increase your base cover every 5 years or after salary rise.

You can add another super top-up plan instead of replacing old one.

This layered approach keeps protection current with changing healthcare prices.

» Planning for Post-Retirement Medical Security

After retirement, income may fall but health cost rises.

A lifelong renewable plan ensures you stay covered.

Premiums will be higher at 60, so start building a health fund.

Keep 2–3 years of premium in a liquid or debt fund.

This fund will help you maintain policy even without active income.

» Understanding Hospital Network Importance

Always choose insurer with hospitals near your home and office.

Check both private and multi-speciality hospitals in list.

Cashless approval makes claim easier and stress-free.

Reimbursement claims are lengthy and may delay refund.

So, wide hospital network is a strong selection factor.

» Building Complete Family Protection Plan

You should have:

A family floater health insurance plan.

A super top-up plan for high-value protection.

A separate term insurance plan for life risk.

An emergency medical fund for small expenses.

Together, these give full 360-degree family protection.

It secures your health, income, and financial peace.

» Steps to Finalise Your Policy

Shortlist 3–4 insurers with strong reputation.

Compare features, not just prices.

Call each insurer to clarify doubts before buying.

Buy directly from company or through CFP-managed service.

Keep all communication on email for record.

Verify policy document immediately after issue.

Inform your spouse about policy details and claim helpline.

» Finally

You have shown maturity and foresight by planning family health insurance at 48. This single decision will protect your family from major financial shocks. Focus on coverage features, not on advertisements or cashback offers. A Rs 10 lakh base plus Rs 20 lakh super top-up family floater policy is an ideal start. Buy from a reputed insurer with proven claim record and large hospital network. Ensure lifelong renewability, no sub-limits, and smooth cashless process.

Your family’s health safety deserves careful planning. With honest disclosure, timely renewal, and regular review, your policy will serve you reliably for decades. This will ensure you can focus on life goals with confidence and peace.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment