How to Figure out How Much Health Insurance you Need

Buying individual health insurance? When it comes to investing in health insurance plans, you should always have an idea of the coverage that you require. There are dangers to choosing insufficient coverage that will be barely enough to take care of costly treatments and hospitalization in the future, taking rising medical costs and inflation into account. At the same time, you do not want to be over-insured, since it will entail paying a high premium that may eat into your monthly budget. In this quick guide we will discuss some pointers on the health insurance coverage that is suitable for your specific requirements.
But before we get to that, let’s clarify the basics of health insurance and its importance.

What is Health Insurance? Why is it Important?

Health insurance is a type of insurance coverage that provides financial protection against the cost of medical expenses. It helps individuals pay for medical expenses, such as doctor visits, prescription drugs, hospital stays, and other medical services.
Health insurance is important because it helps individuals and families manage the high cost of healthcare. Without health insurance, individuals may have to pay for medical expenses out of pocket, which can be very expensive and lead to financial difficulties. Additionally, having health insurance can help people get necessary medical care and preventative services, which can improve their overall health and well-being.

How Much Does One Person Require?

When it comes to individual health insurance plans, you should take your decision only on the basis of proper planning. Those in the early stages of professional life should opt for a minimum of Rs. 3-5 lakh, if not more. This should be a minimum amount and you should ideally go for something closer to Rs. 10 lakh at this stage. Another benefit of getting health insurance plans at a younger age is that your probability of raising health claims is on the lower side. This means that you can get no-claim or cumulative bonuses which may lead to an increase in your sum assured amount. With growing responsibilities and dependents, you should scale up your health insurance coverage. This should then be scaled up to Rs. 10-20 lakh or more, depending on what you can afford. You can use a health insurance calculator to work out the premium amount.

Family Health Insurance- How Much do you Require?

There are several family plans offered by health insurance companies these days. With rising costs of healthcare, having a family plan is often a good way to save on the costs and hassle involved in maintaining multiple individual policies, while keeping everyone secured under a single policy. You should at least go for Rs. 10-20 lakh for two adults and two children. Remember that the premium costs will increase if there are senior citizens included in the family plan since the risks are higher. At the same time, the entire coverage amount is not uniformly distributed across the family members. Any one family member can use the entire amount within the policy period as well.

Health Insurance for Parents or Senior Citizens

When it comes to your parents or other senior citizens, you should be pragmatic about the coverage aspect. Even minor procedures cost a few lakhs today at reputed hospitals and they will be more expensive in the future. You should calculate the sum assured after taking inflation into account and remember that the premiums will be higher due to the age factor.
That said if you are on a budget, you can still choose the best health insurance policy for yourself and your loved ones by following the said factors below:
● Determine your healthcare needs and budget: Assess your healthcare needs, including any ongoing medical conditions or prescription medications, and determine a budget that you can afford for monthly premiums and out-of-pocket expenses.
● Compare plans: Compare the coverage and costs of several health insurance plans. Consider the deductibles, copayments, and out-of-pocket maximums.
● Check the network: Check if the plan has a network of doctors and hospitals that meet your needs. Look for plans that have a wide network of providers.
● Consider subsidies: Check if you qualify for any government subsidies to help pay for health insurance premiums.
● Read the fine print: Read the policy document thoroughly and understand the terms and conditions, including any exclusions or limitations.
● Seek expert advice: Consider consulting with a licensed insurance agent or healthcare advisor who can help you choose the best policy for your needs and budget.

What is the Best Possible Coverage for you?

There is no one-size-fits-all formula to determine suitable health insurance coverage. A few pointers will help you in this regard:
● Your coverage will depend on the kind of hospitals that you prefer for treatment and your age.
● Examine the health conditions of yourself and your family members.
● Your affordability levels will also determine the coverage amount that you can afford.
● Experts recommend health coverage that is a minimum of 50% of your annual income.
● At the same time, the insurance coverage should take care of the expenditure of a coronary artery bypass at least in a chosen hospital.
● The bare minimum should be Rs. 5 lakh in health coverage as per several experts.
● You can also widen the scope of your policy by including riders like critical illness coverage, surgical care, hospital care, and others. They may be availed by paying an additional premium.

Use these tips to find the best health insurance plans and coverage for your needs.