How much health insurance cover do you need

In the present-day scenario, where every few days one hears the name of a new-found disease, there is no denying that having a health insurance policy is crucial. Over the past few years, more and more people are understanding the need of having the right coverage. However, when it comes to deciding how much coverage is required, many are faced with dubiety and doubts.

Why is it important to choose the right sum insured?

The maximum coverage that your health insurance cover will offer you is called the sum insured. And when you are buying a health insurance policy you need to know exactly how much sum insured you need to opt for. If you choose a sum insured that is too low, you may find it to be inadequate in your time of need. At the same time, choosing a very high sum insured would not just be heavy on the pocket but also seem to be a waste. You also need to cater to medical inflation, as an amount that seems adequate today may not be so after 2 to 3 years.

How much health insurance coverage do you need?

When it comes to coverage, there isn’t really an ideal amount. What may be sufficient for one, might not be enough for the other. At the same, there is a general thumb rule that most people can follow, which says that your health insurance sum insured should be 50% of the income you earn in a year. So if you earn INR 15 lakhs in a year, you should surely opt for a health insurance cover of INR 7.5 lakhs at least.

Apart from this, when choosing the right coverage, you need to depend on a number of factors, such as:

1. Your age plays a key role in determining the coverage, as someone in their late 30s or 40s would surely need more coverage than someone in their 20s.

2. If you have had a history of health conditions in your family, it is best suggested that you opt for higher coverage. You can also opt for a critical illness plan if need be.

3. The kind of hospital you wish to get treated in and the cost of hospitalisation should also be kept in mind when planning health insurance coverage. Your requirement for a private/ shared room should also be kept in mind.

4. If you are someone who has a sedentary lifestyle or regularly indulges in smoking or drinking, your coverage should surely be on the higher side.

5. Keeping in mind the increase in lifestyle diseases, it is recommended that you choose a plan that would easily cover the high cost of a potential disease.

6. Last but surely not least, you need to buy a health insurance plan that you can easily afford. You need to weigh the affordability of the plan carefully.

Conclusion
Before you finalise your health insurance policy, make sure you do your homework and make a well-informed decision about the health insurance cover that would be sufficient for you and your loved ones.

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