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How Much Health Insurance Coverage Do I Need?

Published On Apr 01, 2022 10:00 AM By Shrida Gulati

Nowadays, medical treatments are quite expensive and can exhaust one’s savings. What may seem adequate today won’t be enough tomorrow. As a sole breadwinner of the family you would always want to ensure financial protection of your family in case of a medical emergency. Hence, it is very essential to determine how much health insurance coverage you need, especially if you have a number of financial dependents. 

A health insurance policy can be very useful in case you or your family member face a medical emergency which may require immediate hospitalization etc. The sum insured of health insurance you choose should offer ample coverage and comfort of financial security. Let's discuss how much life insurance coverage you might need to protect yourself and your loved ones. 

How Much Health Insurance Coverage Do I Need?

How Much Health Insurance Coverage Do I Need In India?

When it comes to health insurance policies one must understand that there are no one-size-for-all policies available in the market. Every individual has different health care requirements and requires a different kind of insurance policy for their health care needs. If you are looking for a health insurance policy, then you should consider a sum insured which is equal to at least 50% of your annual income. This will help you to obtain a much needed coverage for expenses that may arise during a medical emergency. 

The health care expenses  have been rising since the past few years resulting in expensive medical treatments for illnesses. Under such circumstances, not having a health insurance policy can be problematic as a health insurance policy provides coverage for medical and surgical expenses incurred. 

While determining the sum insured of a health insurance policy you should be very reasonable. Nowadays even a minor medical operation can cost Rs. 1 Lakh easily. Looking at the medical treatments inflation and lifestyle diseases epidemic across the country, a health insurance cover for a family should be at Rs. 10 Lakh with a floater cover. Major treatments that cost Rs. 5-6 Lakhs today, may cost Rs. 8-10 Lakhs in future, given the health care inflation. 

Before you decide on a sum insured, you should consider certain factors such as current health status, pre -existing medical condition, inflation, estimate of potential medical expenses etc. which can help in determining the adequate amount of sum insured based on your coverage requirements. 

The ideal health insurance coverage should be at least 50% of the annual income of the insured person. Experts advise purchasing a health insurance policy with a minimum sum insured of Rs. 5 Lakhs, considering the rising cost of health care treatment nowadays.  


A health insurance policy can definitely be a sigh of relief in case of a medical emergency. Cost of medical treatments and medicines have increased over the past few years. While purchasing a health insurance policy, it is very essential to keep certain factors current health status, pre -existing medical condition, inflation, estimate of potential medical expenses etc in mind which can help an individual to narrow down on an ideal sum insured amount. Always keep a thumb rule in mind, that the health insurance cover should be 40-50% of the annual income of an individual, which can help them keep up with the medical treatment expenses in times of crisis. 

Also read - Understand Some Commonly Used Terms In Health Insurance Policy



This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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