Deciding how much health insurance you need


What may seem enough today may not be enough for tomorrow. You love your family and want to protect them in case the unexpected happens. Therefore, it is essential to consider how much health insurance you need, especially if it is to support your loved ones. A health insurance policy can help cover necessary medical expenses – such as planned hospitalizations, medical emergencies and non-hospitalisation medical care.

The amount of health insurance you buy should provide comprehensive coverage and adequate financial security. In this article, we help you figure out how much health cover you might need to protect yourself and your family.

How much health insurance do I need in India?
Your family and needs are unique – so should your health insurance. The cost of a simple heart disease treatment is around Rs. 5 lakhs currently (depending on where you live); However, this may not happen in the next 5 or 10 years. The first step in buying health insurance is deciding how much coverage you will need. Here are some pointers before deciding on the right plan.

  • Types of Health Insurance Policies: Understand the types of health insurance plans available in the market and then match them with your health needs. An individual plan may have less coverage and a family floater plan may have more coverage as all the members will share the sum insured. You need to assess whether you need individual, family floater or senior citizen health insurance plans and zero in on the appropriate plan.
  • Identify the medical cost for the possible illness: Critical diseases like kidney failure, heart disease, cancer, stroke etc are some of the common potential diseases that you may be affected by in future. Keep such uncertainties in mind before deciding on the sum insured of your health plan. You can also opt for a critical illness plan to extend your Aadhaar plan.
  • Hospital of your choice: Find health insurance plans that include your preferred hospital among network hospitals to avail cashless treatment. Also, check the estimated cost of hospitalization at your preferred hospital or your location to see how much coverage you need.
  • Evaluate whether you have additional health insurance plans: If you have group insurance offered by your employer, this will help you understand the amount of coverage required for your individual or individual health insurance plan.
  • Family medical history: Certain diseases like diabetes and high blood pressure can sometimes be due to hereditary reasons. Keep in mind the possibility of you or your family members who may be affected by hereditary diseases in future and choose a plan that offers benefits.
  • Lifestyle: Many diseases that people suffer from are usually due to poor lifestyle choices. Sedentary lifestyle coupled with unhealthy food habits are the major factors of high cholesterol, high blood pressure, organ failure, diabetes etc. Even improper sleeping habits and stress can trigger lifestyle diseases. You must ensure that your health insurance plan will cover such health conditions in future.
  • Age: There are many age-related diseases that people can contract as they get older. So, if you need to cover senior citizens like your parents or in-laws, consider buying health insurance that covers diseases related to older people. However, young adults (aged 20–30 years) are less likely to fall ill. Therefore, opt for a health insurance plan that provides adequate coverage, yet is affordable.
  • Affordability: Your ability to pay premiums is an important factor when considering how much health insurance you need. Opting for a higher sum insured when you cannot afford it is pointless as it attracts a higher premium. Focus on your potential and then decide on the plan.
  • Tax Benefits: If you are buying health insurance to avail tax benefits, evaluate the amount of tax deduction you want to get through the insurance plan and then decide on the plan that best suits your requirement. be suitable.
  • Covers high-cost medical treatments: One of the easiest ways to determine the right health insurance coverage is to determine whether the sum insured should be sufficient to provide financial protection for high medical cost treatments such as arterial bypass at the hospital of your choice.

Minimum health insurance coverage
A good rule of thumb is to have coverage of about 50% of your annual income. So, if you earn Rs. 20 lakhs Rs. 10 lakh health insurance policy can be the right option for you. However, it is recommended that the minimum coverage is at least Rs. 5 lakh, considering the serious medical cost.

Take Away
Analyze your unique requirement with the above Select an adequate health insurance cover to keep you and your loved ones safe with a good health insurance plan.