How Much Health Insurance Cover Do You Need?

The increasing medical costs have made it almost impossible for salaried individuals to afford good healthcare services in the country. That is where health insurance policies can help. With a health plan, you get a financial cover for your healthcare-related needs. 

One of the most important aspects of availing of the insurance policy is to determine the amount of cover you need. Let us understand how it works so you can easily decide.

Factors that affect the premium

When it comes to health plans, here are some factors that affect the premium.

  • Pre-existing conditions 

The insurance companies prefer their customers to be completely healthy as that lowers the risk of chronic illnesses. If you do have some pre-existing health issues and the insurer decides to cover them, then the premium will be higher.

  • Family’s medical history 

If there is a history of a particular illness that runs in your family, then the chances of you being diagnosed with it are higher. In that case, the insurers raise the premium. 

  • Use of substance 

If you are a smoker or an alcoholic, then your chances of being diagnosed with cancer are higher. Hence, that leads to a higher premium.

  • Age 

Young people are less prone to serious health issues. Therefore, the insurers offer a lower premium for young policyholders. 

Factors to consider before buying health insurance

It is a smart idea to compare health insurance policies thoroughly before deciding on which one to buy. Here are the factors to consider for comparison.

  • Your needs 

The health cover you choose should depend on your requirements. The number of members in your family, their age, and health conditions determine the amount of coverage required.

  • Exclusions 

Every medical insurance policy comes with certain exclusions and limitations. You must carefully read the policy documents before buying a plan to understand the inclusions and exclusions.

  • Premium 

You need to decide how much money you are ready to invest in availing of the health plan. Also, while comparing different insurers, make sure that the price justifies the benefits.

  • Cashless treatment 

With cashless treatment facility, your insurer directly settles the healthcare bills with the hospital. It saves you from paying out of your pocket. You must be aware of the network of hospitals available under your insurer. 

Determining the amount of cover required

When deciding on the coverage you need from your mediclaim, make sure that you are being realistic. When most people are happy with a cover of INR 2-3 lakhs, it can fall short considering the inflation. Most experts suggest that a minimum cover of INR 5 lakh is required. You should consider an insurance cover that equals to at least 50% of your yearly income, and it should be enough for a bypass heart surgery. 

You can always use a health insurance premium calculator to compare the cost of different policies before making your final decision.