Choosing the Right Amount of Health Insurance

Posted in Health Insurance Blogs By Chanel Rick-Mar 11,2022
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The recent spate of COVID-19 and OMICRON related hospitalisations and medical emergencies highlighted the need for financial preparedness. Investing in insurance for yourself, your family and your belongings has always been a well-regarded fact. Over the years, however, many have neglected the importance of health insurance policies. 

With renewed interest, people have begun inquiring about health insurance in India. By investing in health insurance, you can cover yourself, and your family, for pre and post hospitalisation charges, and ambulance expenses, among other benefits. Additionally, you also receive compensation in case an accident causes you to lose a source of income. 

The Criteria for Health Insurance 

Before taking the initiative to purchase health insurance, you need to gauge how much insurance coverage is required. This list consists of criteria you need to bear in mind while choosing a package. 

The Age Range 

Your need for health insurance will differ across different life stages. Medical needs for individuals in their 20s to senior citizenship vary. Bearing this in mind, take a look at how to assess your medical needs. 

1. In Your 20s

Purchasing health insurance at this stage is beneficial in the long run since you receive a better sum assured at a low premium. Choose a substantial sum assured package based on your current expenses. Furthermore, every claim-free year adds free extra covers over your policy. 

2. In Your 30s

During this stage, you need to carefully estimate your expenditures while choosing a health insurance package. You’re likely to incur expenses like marriage, child rear, real estate investments, etc. Factor in the increased probability for medical emergencies, as well. 

3. Between Your 40s to 60

Health insurance policies in India require individuals over 50 to be medically examined before approval. Evaluate the amount of sum assured required by considering the increased risk caused by medical comorbidities. You may be forced to choose a higher package with extra cover. 

4. At Senior Citizenship

At this point, purchasing health insurance with a high sum assured is almost mandatory. However, this will be at the cost of an exorbitant premium. This is owing to the possibility of long term treatment for critical illnesses, or medical assistance. 

Also Read: All You Need to Know About Health Insurance

Balance Your Income

As a rule of thumb, experts recommend a minimum cover of INR 5 lakhs. If this seems counteractive towards your income, then select a policy with a sum assured that amounts to half your annual income. Measure the adequacy of the sum assured by estimating whether it can cover the costs of any possible future medical surgeries. 

Are you the sole earning member of your family? Follow the same method while choosing a family floater plan. 

Understand Your Priorities

Before reaching out to a health insurance company, fully understand your health situation, financial position and the needs of your dependents. 

  1. Pre-Existing Health Conditions: Choose a health insurance policy with lower co-pays and deductibles, and shorter wait periods.
  2. Living Paycheck-to-paycheck: Prevent straining your income any further, pick a health insurance policy with a low premium amount. 
  3. No Immediate Health Risks: If you don’t have any underlying illness, or a family history of health conditions, opt for a lower premium before gradually increasing it. 
  4. Insure Your Parents: Choose a separate health insurance plan for yourself and your elderly parents, instead of family floater plans, for affordable premiums. 
  5. Are Your Needs Excluded?: Learn which health concerns or medical conditions are excluded in your health insurance policy, and consider purchasing add-ons. 

Sudden medical emergencies could easily drain you of all your savings. Prevent the risk of going bankrupt while financing medical bills by selecting the right health insurance plan for yourself. If you still need help in choosing the right policy for yourself, seek the advice of a professional. 

Start investing in health insurance early on to accrue amazing benefits like free add-ons on your policy! Remember, safeguarding you and your family’s health today, will come in handy tomorrow. 

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