Written By: Anshika Ojha

Anshika Ojha

Health Insurance

Anshika Ojha is a content writer with more than 2 years of experience and holds expertise across various formats of content. She focuses on simplifying health insurance jargon and making it easy for readers to understand.

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Reviewed By: Apeksha Parsai

Apeksha Parsai

Term & Health Insurance

Apeksha has trained young minds about the benefits of health & term insurance throughout her 8+ years career. She designs, develops, and delivers impactful training programs for agents/brokers, and internal teams. Her expertise lies in insurance product knowledge, sales strategies, regulatory compliance, and customer service.

Updated on Nov 03, 2025 7 min read

Introduction

In recent years, medical costs in India have increased significantly. For single cancer treatment sessions or organ transplants, the medical bills may exceed ₹1 crore, and treatment overseas can be even higher! Families without sufficient insurance often end up depleting their savings or borrowing to cover the copay for a higher treatment.

A 2 Crore Health Policy is a simple policy that provides insurance coverage of up to ₹2 crore in a single year. The purpose of such a plan is to protect you against very high hospital bills that smaller policies may not adequately cover.

In this article, you will learn what a 2 crore policy is, the pros and cons of such a policy, the best plans available, how much they cost, how you can buy one, and ultimately whether you should buy 2 crore health insurance

What is a 2 Crore Health Insurance Policy?

A 2 Crore Health Insurance plan in India is a policy that provides medical coverage of up to ₹2 crore in a year. If you or a family member is hospitalized, the insurer pays for expenses such as hospital bills, surgeries, medicines, tests, and other covered costs, up to this limit.

There are two ways to get this cover:

• Base Policy: Buy a plan with ₹2 crore as the sum insured. It covers expenses from the very first rupee.
• Super Top-Up: Keep a smaller base policy, say ₹10-20 lakh, and add a top-up that increases the cover to ₹2 crore. The top-up can be used only after the base cover is used up.

Why Buy a 2 Crore Health Insurance Plan in India

A 2 crore cover is designed to shield you from such heavy medical bills. Here are the main reasons to consider it:

• Provides medical coverage of up to ₹2 crore in a year.
• Makes high-cost treatments like cancer care, organ transplants, or advanced surgeries affordable.
• Offers cashless hospitalization at network hospitals.
• Some plans extend coverage for treatments taken abroad.
• May include emergency air ambulance services (with capping).
• Coverage can be restored if the sum insured is used up.
• No-claim years increase the total cover through bonuses.
• Can be renewed for life without age restrictions.
• Premiums are eligible for tax deductions under Section 80D.

Disadvantages of a 2 Crore Health Insurance Policy

While the coverage is attractive, there are some downsides to keep in mind:

• Premiums are much higher compared to regular health plans.
• Usually, a coverage of ₹25-50 lakh or ₹1 crore may be sufficient.
• Standard exclusions apply to most 2 Crore policies, so not every treatment or condition is covered.
• Claims for treatment abroad may take longer and require extra documentation, which might be a hassle.
• If you already have a good base plan with a super top-up, buying a direct 2 crore plan may not be necessary.

Best 2 Crore Health Insurance Policy Options

When you are buying a policy with such a high sum insured, it is important to choose the right plan. We have added the best 2 crore health insurance policy options in the table below.

Super Top-Up vs Direct 2 Crore Policy

You can get health insurance cover for 2 crores in two different ways.

1. The Direct 2 Crore Policy

Let’s consider the Sarvah Param Plan for this example.

• Premium: ₹29,471 per year
• Coverage: ₹2 crore available from the very first rupee of the hospital bill.

If you have a hospital bill of ₹25 lakh, the insurer will pay the entire amount of ₹25 lakh directly. No deductible and no co-pay.

2. The Super Top-Up Policy

For this example, we will consider Star Health Super Surplus Top-Up (with a base policy).

• Base Plan of ₹10 lakh → ₹10,514/year
• Super Top-Up of ₹1.9 crore→ ₹7,852/year
• Total Premium = ₹18,366/year

*These premium numbers are only indicative. Actual costs vary by age. For a 40-year-old, the premium would already be higher than ₹16K-18K, and for senior citizens, premiums rise sharply.

Example:If the hospital bill was ₹25 lakh:

• The first ₹10 lakh is paid by the base policy.
• The remaining ₹15 lakh would be paid by the super top-up.

So Which One Should You Choose?

The direct health policy is simple and provides coverage from the first rupee of a claim; however, the premium is more expensive.

The super top-up is cheaper, but you need to maintain the base policy to start a claim, and the claim is only payable after the base cover has been fully used.

Claim Settlement Process for a 2 Crore Health Insurance

Before you purchase a high-value health insurance policy, understanding how claims are settled is important. It is the easiest and quickest method; that’s why an insurer with the best and the largest hospital network is important.

There are two primary ways:

1. Cashless Hospitalization

• Get admitted into a network hospital as listed by your insurance company.
• You will need to show your health card or policy number to the hospital desk (or to someone authorized by the hospital to take this information).
• The hospital will deal directly with your insurance company to get approval for your expenses.
• Cashless claims must be approved within 30 minutes of hospital document submission; reimbursement claims within 30 days.
• Pre-authorization is required for cashless hospitalization. The hospital must send a request to the insurer/TPA before or during admission for approval.

2. Reimbursement Claims

• If you are treated in a non-network hospital, you will have to pay the bills first.
• Submit complete set of documents. These include claim forms, itemized bills, prescriptions, discharge summaries, diagnostic reports, consultation notes, KYC documents, cancelled cheques, and FIRs (in case of accidents), among others. Missing documents may lead to delays or rejection.
• Your insurance company will evaluate and reimburse the amount back into your bank account for the valid amount. Usually, it is a longer process than cashless claims.

Tax Benefits on 2 Crore Health Insurance

You can deduct premiums paid for a 2 crore health insurance policy, which includes the amount you paid for a policy for yourself, your family, or your parents, from your total income under Section 80D of the Income Tax Act.

• For self, spouse, and children (below 60 years): up to ₹25,000
• If the insured (self/spouse) is a senior citizen (60 years or above): up to ₹50,000
• Additional deduction for parents (below 60 years): up to ₹25,000
• Additional deduction for parents (senior citizens): up to ₹50,000
• Maximum deduction possible: ₹1,00,000 in a financial year (if both self/family and parents are senior citizens)

These deductions are available regardless of the sum insured. So, even if you buy a ₹2 crore health insurance plan, the same Section 80D limits apply.

How to Buy 2 Crore Health Insurance Online

Buying a health insurance policy has become very simple with PolicyX. Follow the following steps and secure your health.

• Visit PolicyX.com. Add your age, city, family members, and sum insured.
• Compare the options and easily buy health insurance for 2 crore online
• Once you have compared, check the network hospital, exclusions, premium, and add-ons thoroughly.
• Choose the best plan, fill in your health details, and upload documents/tests if needed.
• Make the payment online and get your digital policy instantly.

Who Should Buy a 2 Crore Health Insurance Plan in India?

People belonging to the following categories should consider buying a 2 crore health insurance plan.

• High-net-worth individuals and business families benefit from a 2 crore plan because it covers large hospital bills, advanced treatments, and premium hospitals without financial strain.
• People with a family history of diseases such as cancer, heart disease, and organ failure can use this plan for coverage. If they face the same issues, the financial impact of expensive treatments is almost zero.
• Young professionals can buy a policy earlier to lock in lower premiums. This will create long-term coverage for themselves and their families.
• Individuals who travel frequently and NRIs can rely on these plans for coverage in India and, in certain cases, abroad as well.

Should You Really Buy It? (Decision Checklist)

Most people have a hard time deciding if they should buy 2 Crore health insurance. Check the following conditions and see if you should buy it or skip it.

Buy if:

• You have enough money to spend on higher premiums without putting your other financial goals at risk.
• You (or someone in your family) has a history of illnesses that may cost you a lot of money to get treatment.
• You want to find coverage that gives you advanced treatments, not just basic treatments, and you want protection for global care expenses.
• You travel frequently and want protection in all countries you will be travelling to.
• You are young and healthy and will use this system to lock in low premium costs for now and the future.

Skip if:

• You already have a good base insurance policy and a super top-up policy covering you up to ₹1-2 crore.
• You have very little disposable income, and paying a high premium will restrict your ability to spend elsewhere.
• You have no significant health risks and are healthy enough to want only basic coverage.
• You are part of a corporate group insurance plan that already covers a reasonably large sum.

Conclusion

Health insurance is not about finding the largest coverage possible. It’s about getting the right coverage for your needs and budget. A 2 crore plan can provide unrivaled peace of mind, but it’s only worth it if it fits into your lifestyle, health risks, and finances. Always compare the features, exclusions, and premiums before finalizing a policy.

If you decide that a 2 crore health insurance plan is suitable for you, then make your purchase online with PolicyX.com. It will be quicker, clearer, and less expensive. We offer no spam, no gimmicks, only expert insurance advice.

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