As 2026 approaches, take a moment to review your health coverage. If you haven’t yet purchased a health policy, or if your recent claims have made you rethink your protection strategy, now is the time to act.
You need to understand that it is an essential component of your financial plan.
Mind it: even if you have an emergency fund in place, a financial plan without proper personal health cover can be dangerous. Even if you have an employer-sponsored health cover, it is not always enough.
India already has one of the highest healthcare inflation rates. If faced with early hospitalization within the first five years of your professional life, or faced with multiple healthcare expenses in a single year, your savings will completely deplete without a health cover and put your financial plan in jeopardy. Buying a health insurance policy for you and your dependent family member should be your first step in 2026 for attaining monetary freedom with a financial health checkup.
Health insurance is a complex product, and as you see the terms and conditions of the policy, you might feel bombarded with a lot of financial jargon, but to cut a long story short, here are the five things to consider while opting for a health policy or rethinking your health protection strategy in 2026
Here are five key factors to keep in mind when choosing or upgrading your health insurance plan this year.
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- Prioritize disclosure and documentation over “easy” buying: One of the main reasons for health insurance claims rejections in India is failing to disclose your health or medical history at the time of policy purchase. The strange part of the Indian system is that the entire burden of informing the insurance company about your medical history lies with you, the customer. The insurance company can reject your claim for non-disclosure without even issuing a refund, even though you have been paying premiums for the last 10 years.
To avoid this, prefer to fill in the proposal form by yourself or with the help of a trusted advisor. It is better to over-declare rather than under-declare; it is better to be rejected upfront than at the claim time. - Don’t just consider health insurance as a tax-saving option: Yes, health insurance premiums qualify for deductions under Section 80D of the Income Tax Act, but tax benefits should never be the only reason to buy a policy. Here’s how you can structure it effectively:
- One policy for yourself and your family offers up to ₹25,000 in tax deductions (₹50,000 if the insured is over 60).
- A separate policy for parents provides an additional deduction of ₹25,000 or ₹50,000, depending on their age.
The question is: should tax exemption be the only reason for buying a health policy? The answer to this question is “No”. The approach should be to talk to a financial planner and try to gauge the ideal coverage you, your family, and your parents should have. Please evaluate the features offered by insurers and match them to your health requirements before you decide upon a policy from a specific insurer. Consider the tax exemption just as a top-up benefit.
- Consider your employer’s cover as a bonus, not a backbone: A common notion among salaried people is that I need separate health cover for me, my family, or my parents, even when my employer already provides one. One needs to understand that employer-provided corporate health cover is a revocable HR benefit, not a long-term personal finance solution. Coverage, premiums, room‑rent caps, and co‑pays can all change suddenly, and the employer can curtail or withdraw the benefits. The insurance contract will also become void as you move from one employer to another. The critical point here is that the employer benefit should not be part of your core protection strategy. A patchwork of group employer cover and top-up cover is also not the right way to go forward. It is better to have a personal health policy in place, and employer coverage can serve as a bonus.
- Don’t mix senior parents into your family floater. When buying family health insurance, avoid including your senior parents in the same floater plan. Insurers calculate premiums based on the age of the oldest family member, so including older parents increases your premium and risk.Consider buying separate individual plans for parents instead of a parent floater. Plan for health risks separately for your family and your parents, and make suitable upgrades as requirements change. As this will make claims cleaner, it will also reduce the chance that your own cover becomes unusable just when you need it.
- Port carefully, not casually: You may receive calls offering to port your health insurance to another insurer, promising better benefits or lower premiums. But porting is not always a good idea.If you are rethinking recalibrating your health protection strategy, porting to a new insurer might not always be the right way. You need to understand that the new insurer will underwrite as a fresh risk, can decline, or add conditions. Early claims after porting often attract extra scrutiny because they inherit waiting-period credits without having paid prior premiums.If you find the services of existing insurers unsatisfactory, porting can bring relief. Remember, if you have already raised a claim with the earlier insurer, it is better to stay with them, as they understand your situation better and may ask them to reconsider underwriting at renewal based on the current situation.
- Prioritize disclosure and documentation over “easy” buying: One of the main reasons for health insurance claims rejections in India is failing to disclose your health or medical history at the time of policy purchase. The strange part of the Indian system is that the entire burden of informing the insurance company about your medical history lies with you, the customer. The insurance company can reject your claim for non-disclosure without even issuing a refund, even though you have been paying premiums for the last 10 years.
To conclude: Protect Health, Protect Wealth.
Health insurance is not just another financial product. It’s your first line of defense against medical emergencies and rising treatment costs.
The year 2026 will bring higher medical expenses, lifestyle-related illnesses, and more complex coverage options. Make sure your policy keeps pace with your needs.
Buy early, disclose honestly, and review your coverage every year. A well-chosen health insurance policy will safeguard not just your health but also your financial future.
Before renewing or purchasing a new policy this year, review your coverage with a certified financial planner. Ensure your sum insured, family composition, and benefits align with your current life stage and goals.
