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How Much Health Insurance Coverage Should I Have?

Updated On Mar 08, 2022

The Amount of Health Insurance you acquire should provide you with more coverage and financial security. We will show you how to figure out how much Health Insurance you will need, to protect yourself and your family in this article.

How Much Health Insurance Do You Require?

In the previous few decades, medical advances have greatly increased life expectancy. However, changing lifestyles and external influences have resulted in people living longer but in poorer health today, particularly in metropolitan regions. As the number of automobiles on the road has grown, so has the number of medical ailments induced by new age lifestyles, sometimes known as lifestyle disorders. From newborn babies to the elderly, everyone is more vulnerable to hospitalization now than they were a few years ago.

What is the Minimum Health Insurance Requirement for an Individual?

If you are seeking a health insurance plan in your early years of life, you should always go for a policy that covers you for more than 3 Lakh. This will assist them in obtaining much needed coverage to cover any expenses incurred as a result of illness. Furthermore, because you are less likely to submit a claim when you are young, you are more likely to qualify for the no claim bonus or cumulative bonuses, which can boost your total insured by up to 200 percent year after year.

How Much Health Insurance is Needed for a Family?

Meanwhile, the expense of healthcare has been continuously rising for the past decade or so, with medical inflation estimated at 15% per year. With escalating healthcare costs, not obtaining Health Insurance regardless of age might be dangerous. You never know when an illness will strike and cost you a fortune in medical bills. 

A single hospitalization, if not planned for, might devastate a family's carefully adjusted finances. Given these risks, it is vital to have Health Insurance coverage in place to protect you and your family in the event of an emergency medical problem. Having a Health Insurance Policy is beneficial, but it is also a legal necessity. To get the most out of a Health Insurance Policy, it is also critical to have the right balance of coverage. Most policyholders in India cover their families for between Rs 7-9 Lakh, with a single family sharing the sum insured. Choose a sum insured of at least 10 Lakh for two adults and two children.

Health Insurance for Senior Citizens and Parents

When deciding on the level of coverage, you must be reasonable. Even a minor medical operation nowadays can easily cost up to Rs 1 Lakh. Today, a bypass surgery at a reputable hospital costs more than Rs 2 Lakh, and it will almost certainly cost more in the next five years. A Sum Insured that appears enough today may not be adequate in the future to pay your healthcare bills. As a result, it's a good idea to factor in inflation when deciding on the Sum Insured. Also, if your parents are elderly, they will need a larger sum insured as well as a premium that reflects their age.

Is There Ever a Right Amount of Coverage That One Needs to Look At?

A variety of factors influence the appropriate amount of coverage, including the type of hospital you like, your current age and health status, your budget, and so on. The cost of healthcare varies greatly depending on the institution and the services chosen. While there is no ideal sum assured for an individual's Health Insurance policy, there are two widely accepted market standards for how much it should cost. 

First, your health insurance should cover at least half of your annual income. Second, your health insurance should cover the cost of a coronary artery bypass graft at a facility of your choosing. Most personal finance experts advocate a minimum health insurance coverage of Rs 5 Lakh.
Because of the rising costs of drugs and treatments, your individual Health Insurance plan may not be enough to cover all of your expenses. 

Expenses such as extended nursing care, counseling sessions, or rehabilitation during the recovery phase may not be covered by basic health insurance. However, using products like Riders and Top-Ups, you may significantly improve your health coverage above your standard policy without having to pay a higher premium.

Take Away

This allows you to obtain sufficient health insurance coverage to cover any future medical bills and avoid being underinsured. It is also a good idea to examine your insurance needs and check your health plan on a frequent basis. As we get older, our needs are certain to vary, so updating your insurance to reflect this can be beneficial.

Disclaimer: 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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