How Much Health Insurance Do You Need in India?

Do You Know Exactly What Sum Assured Will be Right in Health Insurance for You?

Looking at the uncertainty of health and life, having enough health insurance coverage is important. But how do you estimate the amount of health insurance you need? Let’s find out in this post.

In the present situation of uncertainty and pandemics, having a comprehensive health insurance policy covering yourself and your family is important. However, the point is how to calculate how much insurance you require? Or do you think the amount of coverage you have is enough for you and your family members. What if any unforeseen health situation emerges in the near future? Will the coverage that you have is sufficient to handle such situations. Yes! All these are very vital questions that you must consider while investing in health insurance.

Let us discuss all such questions in this post to give you an idea of the amount of health coverage you should opt for.

What is the right amount of coverage you should buy for health insurance ?

Of course, it depends from person to person as well as on the health condition of the insured and the number of people included in the policy.  However, there are two basic rules to follow to buy the best health insurance in India;

1. You should opt for health insurance coverage equal to 50% of your yearly income
2. You should opt for a policy amount that cover you against the expenses of undergoing a coronary artery bypass graft at a hospital of your choice

Now, coming back to how much health insurance you must purchase, let’s try to find it out.

How much should be your health insurance purchase? 

It actually depends on whom you are buying the coverage for. If you are buying health insurance for yourself, you must follow the above rule of buying insurance equal to half your yearly income. So, if you are earning INR 6 lakh per year, you should invest in a health policy offering a coverage of INR 3 lakh.

However, looking at the increasing cost of healthcare expenses, the above coverage may not be sufficient either. So, as per insurance experts, having a coverage of at least INR 5 lakh is important from the best health insurance company in India so that you can cover the expenses easily.

In this case, buying health insurance early on in life allows the insured to have greater coverage at lower premiums. This way, you can also accumulate cumulative bonus or No claim bonus every year and lower the premium amount further.

How Much Health Insurance do you require for your Family?

Now if you are a family man, you must buy health coverage for your family members as well. Since medical emergencies can occur anytime and to anyone, you simply cannot take any chances. And if such a situation arises, you will have to do away with all your savings in a single hospitalization. So, to avoid this it is important to opt for the best health insurance plan in India with at least a minimum of INR 10 lakh sum insured for your family.

Here, you can go for family floater plans and let all family members share a single sum insured. This way, you can lower the premium significantly because you don’t have to pay for individual policy for each member. Because here the sum insured is shared by every member insured under the best family health insurance plans in India on floater basis.

Also Read: Top 5 Family Health Insurance Plans in India

How Much Health Coverage should you buy for Senior Citizens?

Senior citizens like your parents or grandparents are the ones who are most susceptible to diseases. Being vulnerable, they need enough health coverage to get their medical treatment done at a good hospital so that they do not have to suffer due to lack of funds. Looking at the surge in the costs of surgery and other medical procedures, a minimum of INR 2-3 lakh is required if a senior member of the family gets hospitalized for a certain illness. So, depending on the existing diseases and the health condition of the elderly, you must buy health insurance in India with the best coverage. A minimum of INR 5 – 10 Lakh is required to cover the health costs of elderly comfortably.

Thus, an all-encompassing health policy with a high coverage amount is the prime requirement for the senior citizens.  However, you must note that as the sum insured increases, so is the premium rate. Further, most insurers charge high premiums while offering coverage to senior citizens because the likelihood of making claims is more. So, ensure to check the rate of premium levied on the health insurance of senior citizens before buying.

So, now you know how much health insurance you must choose. Let us discuss the things that you should keep in mind while buying a health cover.

Things to Remember While buying the Right Amount of Health Cover

Age of the Insured – This is the first important factor to consider as the older the person is, the higher the sum insured is required and higher is the premium charged.

Medical History – If a person has many pre-existing diseases, he/she is likely to make frequent claims. So, this is another factor to consider while buying health insurance because this factor is considered by most health insurance companies in India.

Type of Hospital – What kind of hospital you want to avail treatment is also a factor to consider while buying a health plan. This is because availing treatment in private hospitals with high reputation would be more than in a hospital run by the government. So, if you want to be admitted in a private hospital, opt for a greater sum insured.

Ability to Afford – Also, you must decide your health coverage depending on your budget and affordability. With limited income, you may not be able to afford higher premiums