Summary of this article
Diwali is an ideal time for reflection, including a check on your financial and health protection.
Use your Diwali bonus wisely to enhance coverage, add a top-up, or create a medical emergency fund.
With medical inflation at nearly 14%, a metro family of four should ideally have Rs 10–15 lakh base cover plus a super top-up.
Reviewing fine print such as sub-limits, co-pays, and exclusions. This ensures your policy delivers when it matters most.
As homes get a makeover with cleaning and fresh coats of paint this Diwali, it is also worth to extend the festive spirit to something less sparkly, but just as, if not more, important - your insurance cover.
The festive season, and Diwali in particular, is not just about lights, diyas and sweets, it is also about embarking on new beginnings and planning for the year ahead.
According to Manju Dhake, head of insurance advisory practice at 1 Finance, a personal finance advisory firm, Diwali is a fitting reminder to reassess financial and health protection.
“It symbolises renewal and reflection, values that align perfectly with reviewing one’s insurance. While such reviews shouldn’t be limited to festivals, this time of the year serves as a good prompt to check if your cover still meets your current needs,” she says.
Health insurance, for instance, may need updating after major life changes, such as a new dependent, rising healthcare expenses, or simply because costs in your city have gone up. “It’s an ideal time to plan enhancements before your policy renewal, evaluating gaps or dependents added during the year,” Dhake says.
Just as you clean and refresh your home, revisiting your insurance ensures that your financial base remains strong and ready for any unexpected medical event.
How You Can Allocate ‘Diwali Bonus’ Towards Health Insurance
A Diwali bonus can be used meaningfully to strengthen financial resilience. Dhake suggests allocating a portion towards improving health protection by:
Increasing the sum insured
Adding a super top-up
Purchasing coverage for parents
“For those already adequately insured, directing a small share of the bonus into a medical emergency fund helps cover non-payable or out-of-pocket costs. Instead of short-term consumption, treating the bonus as an investment in protection ensures both peace of mind and preparedness, a valuable gift to oneself and one’s family,” she says.
What’s A Safe Minimum Sum Insured For A Family Of Four In A Metro City In 2025
Medical inflation in India continues to outpace general inflation, currently rising at 14 per cent annually, which makes addressing this question important as you plan health insurance this Diwali 2025.
In that context, Dhake points out that a family of four living in a metro city should ideally have at least Rs 10-15 lakh of base cover, supported by a super top-up for major hospitalisations.
The adequacy of the sum insured, however, depends on factors, such as lifestyle, family health history, and the cost of treatment in your city. The key is to ensure your coverage keeps pace with rising expenses.
Coverage Gaps One Should Check For During A Diwali Review
Dhake notes that most policyholders often overlook ‘fine print’ clauses that can lead to unpleasant surprises during claims. These include:
Sub-limits on room rent
Capping on specific treatments
Co-payments for older members
Waiting periods for pre-existing conditions
“It’s also important to check deductibles in super top-ups, exclusions for modern treatments, and hospital network adequacy. Reviewing these aspects annually ensures your policy remains comprehensive and dependable,” she adds.
Diwali can serve as a symbolic reminder to examine these details closely and make necessary adjustments before renewal, ensuring genuine financial and health security.
“True financial wellness lies not in owning a policy, but in ensuring it delivers when needed with clarity, adequacy, and confidence,” Dhake says.
