'Why basic health insurance isn’t enough': CA breaks down 3 must have add-ons

In an age where medical inflation is outpacing income growth, having health insurance is no longer optional — it’s essential. But as experts warn, simply owning a policy isn’t enough. The real protection comes from having the right add-ons that bridge coverage gaps most people don’t even know exist. 

Chartered Accountant Nitin Kaushik took to X (formerly Twitter) to stress this very point, writing, “Your health insurance isn’t useless — it’s incomplete.” He explained that while many buy insurance merely to “tick a box,” the difference between a nominal policy and a true safety net lies in three key add-ons: Instant Cover, Consumables Cover, and No Claim Bonus (NCB). 

Instant Cover Add-On: Kaushik noted that most policies impose a waiting period of 2-4 years for pre-existing diseases like diabetes, blood pressure, or thyroid issues. With the Instant Cover add-on, coverage for such conditions can begin within just 30 days. “About one in five Indians aged 18-35 suffer from a lifestyle disease. Waiting years could cost you lakhs in medical bills and lost coverage,” he warned. 

Consumables Cover: Hospitalisation often comes with surprise expenses — masks, gloves, syringes, and other consumables — which typically make up 15-20% of a hospital bill. “On a ₹3 lakh bill, that’s ₹45,000-₹60,000 paid out-of-pocket unless you have this add-on,” Kaushik explained. “With it, your insurer covers these costs — that’s literally saving you an EMI every time you’re hospitalised.” 

No Claim Bonus (NCB): This add-on rewards policyholders for staying healthy. Starting with ₹10 lakh coverage, one can grow the sum insured by 5-10% every claim-free year, potentially reaching ₹15-20 lakh or even ₹1 crore, depending on the policy. “Why pay ₹2.5 lakh extra upfront for more coverage when you can earn it through consistent claim-free years?” Kaushik asked. 

He further highlighted that health insurance isn’t just about protection — it’s a form of financial risk management with compounding benefits. 

Kaushik also reminded readers to carefully review policy terms, premiums, and waiting periods before choosing add-ons, since coverage varies widely among insurers. Moreover, premiums paid towards health insurance and its add-ons qualify for tax deductions under Section 80D of the Income Tax Act, adding another layer of financial benefit. 

In essence, health insurance is not just about having a card — it’s about having the right cover. And as Kaushik’s breakdown shows, the right add-ons could make the difference between partial relief and total protection.