Categorized | Health Insurance

how much health insurance is enough?

There is no magic figure that can be put forward as the right amount of medical insurance for an individual. What might seem just enough today may make you feel under-insured tomorrow. Let’s find out how to go about making choices.

Is a Health Insurance of Rs. 3 lakhs enough? Probably for a normal illness or a minor surgery; What if a major Accident happens or if you have to undergo a major surgery or an organ transplant? Will Rs 3 lakhs still be enough?

When we talk of how much health insurance is needed, we already realize the fact that health insurance is very important. To decide upon how much health insurance will be enough, is the tough part. We don’t know what to expect and what future holds. Working with some pointers can help decide on an amount. Using these pointers, we may be able to reach a probable figure that may be sufficient or at least enough to alleviate major costs.

So the first thing to begin with is to take up certain situations and consider related expenditures. Thereafter, we need to determine how much we can afford and what finances are available to us. Consider the following:

The city that you live in

Medical expenditure will depend a lot on which city in India you live in. medical treatment, consultation, room rent etc. is more in bigger cities. The smaller cities and towns may have more economical medical care.

The hospitals that you visit

Determine the kind of hospitals that you prefer to visit or the kind of doctors that you see in case of need. Quality and brand of the hospitals and doctors often determine the fees charged by them.

Consider your family health history

If you have a family history of ailments, you might need higher cover at some stage. Consult your family doctor if need be to determine the health risks that you may have to face and the costs of treatment.

Consider the rising costs

Medical costs are rising. Medical assistance is becoming more expensive. Do consider how much more a treatment will cost five to ten years from now if not too ahead into future.
 
Determine what you can afford

How much insurance you can afford and how much out of pocket medical expenses you can bear are two very important things to consider. It is your capacity to pay in any emergency. Keeping in mind this amount will also help decide the insurance amount.  

Determine affordable premium

Finally but very importantly, it is essential to determine how much Premium we can afford to pay comfortably. Though affordability may be different from what we need, it is the single most important factor. See what insurance you can buy with the premium you can afford. Even if it is minimum insurance for now, go ahead.

Since health insurance is very important for each family member, if you find the premiums for individual plans for everyone to be beyond reach, you may go for family floater plan. You can always increase the sum Assured later or supplement the base cover with top-ups or Riders as the need may arise.

Any financial assistance means a lot in the time of need.