In the last few decades, improvements in medical research have greatly increased life expectancy. People are now living longer, but in worse health, due to changes in lifestyle. This has made everyone starting from toddlers to senior citizens vulnerable to health problems. This is where a health insurance policy comes into play. It can assist in paying for necessary medical costs, including hospitalization, medical emergencies, and non-hospitalization medical treatment.
An ideal health insurance policy should provide comprehensive coverage and significant financial security. But, how to calculate how much health insurance you or your family members will need? Read further to know more about protecting your family with the right health insurance.
What is the Minimum or Ideal Health Insurance Coverage?
A golden rule when it comes to medical insurance is getting a policy that covers around 50% of your yearly income. However, given the rising expense of healthcare, it is advised that the minimum coverage be at least Rs. 5 lakhs.
Choosing the Ideal Coverage for Dependents
While choosing a health insurance policy, it is important to make sure all the dependent members of your family are adequately covered. However, if you are single and covered by a group health insurance policy, you can choose your policy accordingly. We have put together the ideal coverage for each category below.
For an Individual: If you are in your late twenties or early thirties, you should consider above 3 lakhs. This will assist you in availing adequate coverage to pay for any medical bills that may arise. Additionally, since the likelihood of you filing a claim is low when you are young, you might end up with lesser premiums and qualify for No-Claim Bonuses (NCB).
For a Family: If you are planning to opt for a family floater health plan to get the most out of it, you should consider at least a sum insured of 10 lakhs for 2 adults and 2 children. This might increase if you are planning to add your dependent parents or in-laws to the plan. However, we recommend you don’t. The majority of policyholders in India insure their families for an average of Rs 7-9 lakhs because each family shares the common sum covered.
For Senior Citizens: The best way to protect your dependent parents or in-laws with a health insurance plan is to put them on a separate plan and not include them in the floater plan. And, if your parents are elderly, they will undoubtedly need a greater insurance payout, and their premiums will be hefty as a result, costing you more. Depending on their age and medical history, you can purchase their health plan. The easiest way is to make sure that the amount covered is sufficient to cover the expense of high-priced medical procedures like artery bypass in a hospital of your choosing.
What are the Factors to be Considered for Choosing Health Insurance?
Everybody’s needs in a family are particular, so your health insurance should be as well. Choosing the right amount of coverage can be quite challenging, as it is the first stage in purchasing health insurance. Here are some factors to be considered for choosing health insurance.
Type of Policy: Based on your responsibilities, as a single man/woman or a family person, you should choose an individual policy or consider a family floater policy for your dependent family members and a senior citizen plan for any elderly to cover all your anticipated healthcare needs.
Medical History: Some diseases, like diabetes and hypertension, may have inherited causes. Consider the potential that you or a member of your family could get genetic disorders in the future while choosing the plan that gives the benefit.
Lifestyle: People often get illnesses as a result of poor lifestyle decisions. Sedentary lifestyles and bad eating patterns are significant contributing factors to high cholesterol, hypertension, organ failure, diabetes, etc. Stress and poor sleeping patterns can also lead to lifestyle disorders. Make sure your health insurance policy will continue to provide coverage for these conditions in the future.
Age: As people age, they are more likely to develop certain age-related ailments. So, if you need to provide for your parents or parents-in-law, you might want to think about getting health insurance that includes ailments specific to the elderly. However, the likelihood of illness in young adults (between 20 and 30 years old) is reduced. Choose a health insurance plan that provides adequate coverage while remaining reasonably priced.
Medical Costs of Potential Illnesses: Some of the common probable diseases you can contract in the future include critical illnesses including kidney failure, heart conditions, cancer, stroke, etc. Consider these uncertainties before deciding the total amount of coverage for your health plan. To support your basic coverage, you can choose a critical illness plan.
Preferred Hospital: To access cashless treatment, look for health insurance plans that include your preferred hospital among their network of hospitals. With this, you can also arrive at an average sum insured by enquiring about the general cost of hospitalization at the hospital of your choice.
Affordability: Your ability to pay the premium is a crucial consideration when determining how much health insurance you require. If you can’t afford it, it is pointless to choose a greater sum insured because it entails a higher premium. Consider your financial situation before selecting a plan.
Tax Benefits: When purchasing health insurance for tax advantages, determine the amount of the tax deduction you wish to receive from the insurance plan before selecting the plan that best meets your needs.
Healthcare costs have been continuously rising over the past decade or so, with medical inflation estimated to reach 15% per year. Regardless of age, not having health insurance can be problematic given the escalating expense of healthcare. So, keep them all safe and sound with a solid health insurance policy.
This is a Partnered Post.
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