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How Much Health Insurance Do I Need?

By Finserv MARKETS - Jul 25,2019
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How Much Health Insurance Do You Need?

Healthcare costs in India have increased by almost 15% over the past few years. The growing instances of lifestyle diseases amongst the population are expected to increase this percentage in a few years. To avoid these medical expenses from being a burden in the future, it is necessary to have a health insurance policy.

However, the predisposition of a person towards serious medical conditions depends on a number of factors such as age, gender, heredity, etc. Stressful work environments and close proximity to highly polluted areas may also affect your health conditions. Thus, if you consider all these factors, the quantum for medical insurance may differ from person to person.

As a result, insurance providers are offering a number of medical insurance policies, the premium for which can be customized as per a person’s past medical history and likely predisposition to certain medical conditions.

Importance of Having a Medical Cover

The possibility of medical expenses arising out of other unexpected situations might not be high but still there. It may include possible injuries sustained due to accidents, exposure to any radioactive substances, the breakout of an epidemic, etc. Therefore, it is necessary to have a medical cover in the light of any such unforeseen medical emergencies.

How Much Health Insurance is required for an Individual?

Today, people who are in their 20s are a lot more health-conscious. A major percentage of the population between the age group of 20-30 years regularly goes to the gym and follows a nutrition-rich diet in an effort to improve their health.

Therefore, a health insurance policy offering a coverage of Rs. 4-5 Lakh is enough for a people in their 20s.

How Much Health Insurance is Needed for Family?

People between the age group of 30-40 years suffer from stress a lot these days. This stress is due to work as well as family pressure. People in this age group reach a level of seniority in their profession. As a result, the responsibilities and work stress is much more on them than what it was in their 20s.

Similarly, when it comes to their personal life, these people have to think about their child’s education and other familial responsibilities. The worry and stress during these years can lead to the onset of several medical conditions such as high blood pressure, diabetes, stroke, obesity, heart diseases, etc.

Therefore, it is advisable that people in their 30s or 40s, who are living in Tier I or Tier II cities should buy a health insurance policy online for at least Rs. 7-8 Lakh.

Health Insurance for Senior Citizens/Parents

People in their 50s are nearing their retirement. It could you or even your parents. Thus, it is wise to opt for a health insurance premium that can take care of the future medical expenses. Use the health insurance premium calculator available on Finserv MARKETS. The tool helps determine the premiums charged on your desired health insurance coverage. Based on the results, you will be a step closer to making an informed decision related to health insurance.

A heart surgery that costs Rs. 5 Lakh today might cost Rs. 20 Lakh in a few years. Therefore, it is advisable for individuals who are past 50 years of age or have parents nearing old age to look out for a health insurance policy online that offers a minimum coverage of Rs. 10-15 Lakh.

Is There a Right Coverage Amount that You Should Consider?

The right health insurance coverage for you is dependent on several factors. Some of these factors include the type of hospital you are seeking medical assistance, your age, the health issues you and your family have, and your affordability.

As we know, the fees to avail the healthcare services vary depending on its use. For instance, your medical bills will double during a knee replacement surgery if it involves implementing imported implants. Therefore, it is recommended to choose health insurance coverage based on your lifestyle habits and medical needs.

Typically, the coverage should be 30-50 times more than your current annual income. However, depending on your affordability, you can opt for extensive coverage as well.

Do You Know the Risks of Being Underinsured?

Health insurance is a need of the hour. With more people seeking health insurance in India, the cases of being underinsured are on the rise. For most people, the process of buying health insurance ends when they select a plan and pay the premium. It is at the time of raising a claim against the health policy is when they realise that they don’t have sufficient coverage. At that moment, being underinsured is equivalent to being uninsured.

What Does it Mean to be Underinsured?

As explained earlier, being underinsured is to have insufficient health coverage. There are two ways to be underinsured –

  1. Having insufficient sum insured – Here, even though you have the right health insurance plan, the sum insured is low. This can happen due to wrong assessment of your future requirements or you wanted lower health insurance premiums.

  2. Having insufficient coverage – While you choose the right health insurance plan with a sufficient sum insured, at the time of raising a claim request you realise that the policy does not cover critical ailments such as cancer. This can happen due to lack of market research on the health insurance plan you purchased.

How Do I Avoid the Risks of Underinsured?

You can avoid the risk of being underinsured with the following tips –

  • Before you buy health insurance in India, evaluate your current financial situation, lifestyle habits, and yours and your family’s medical history. Assessing these factors will help you choose a health insurance plan that best suits your needs.

  • As stated earlier, it is necessary to opt for a sum insured amount that suffices you and your family members. Ideally, it should be 30-50 times more than your current annual income.

  • At the time of buying health insurance, go through the policy exclusions and conditions carefully.

  • In case you have any queries related to the health insurance terms and conditions, get in touch with the insurer and resolve them as soon as possible.

Age at Which You Opt for an Insurance Cover?

It is recommended to buy a health insurance plan at an early stage in life. Since you are young, the chances of you suffering from a critical health condition are low. Therefore, the insurer considers you as a low-risk applicant. That way, you can secure a high sum insured at an affordable premium rate.

Conclusion

Today, you can choose from a number of health insurance plans in the market. Some of the popular plans include-

To get the best health insurance coverage at attractive premiums, visit Finserv MARKETS today! The health insurance plans available on Finserv MARKETS come with benefits such as extensive coverage, instant claim settlement, and reinstatement benefit on the exhaustion of the sum insured. To buy tailor-made health insurance plans as per your medical needs, get in touch with us at Finserv MARKETS.

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522