“The greatest wealth in the world is your health”
The rising cost of medical expenses can be financially & emotionally strenuous. In our busy and hectic lives, there is always a probability of health unpredictability that might require expensive treatments. COVID-19 pandemic was such an unpredictable event. People were seen to be more focused on financial planning too!
This pandemic made a steer realization of having Health Insurance in the plan. Hospitalization costs, access to good hospitals, and expensive treatments had and will be financially straining in upcoming years. Thus, having a good amount of health insurance cover will suffice your and your family’s medical needs. The major question that arises in people’s minds is how much health insurance cover they should take?
Well, in this blog, we’ll be discussing:
- Why does one need Health Insurance Cover?
- How much Health Insurance cover one should take?
Why does one need health insurance coverage?
The reasons for getting Health Insurance coverage are ample. The most crucial aspect is to fight lifestyle diseases. People under the age bracket of the 40s, generally start having illnesses like diabetes, respiratory problems, heart disease, etc. These diseases are challenging to cope up with and thus it costs majorly too!
Nowadays, medical expenses from say, consultation to surgery are a lot. During that time, health insurance will benefit you efficiently.
Another reason why people consider purchasing health insurance is to safeguard their families. No one plans an unforeseen incident, it just happens. Plus, buying health insurance at an early age will benefit you even more!
How much health insurance cover one should take?
There is nothing like the right amount of Health Insurance coverage, as its dependency is on various factors:
- Premium Payment Amount
Health insurance covering between 50% to 100% of your annual income is an efficient amount to have. But an important factor to cover is that not everyone can pay for 50 lakhs or 1 crore of health insurance cover. An ideal way to figure out this is by taking 2% of your yearly income. Now consider this example, if you earn Rs 8 lakh a year, you might be able to pay an amount of Rs 14,000 yearly. This premium amount will give you a decent cover from today’s standard.
- Family Medical History
The insurer makes sure to go through your family’s history of health problems and this step affects your insurance cover. Now, this is done to evaluate the risk of the insured contracting the same from the history of their family health.
- Age of the Insured
This factor is extremely crucial, and the age factor can affect your health insurance coverage. It is always said to purchase health insurance at an early age as it entails various benefits. For example, if you start in your 20s, you can buy health insurance benefits worth Rs 5-10 lakh and then increase it by 10-15% every year. But for individuals getting it by 45 years of age would eventually end up paying a higher premium for health insurance coverage.
- Type of Hospital
Health Insurance is affected by the grade of the hospital that an individual chooses to be hospitalized. There is a variation in the rate of the same treatment in different hospitals. So, determine the amount of health insurance coverage by calculating the expenses that might incur from the hospital of your choice.
Also Read: Why Is Health Insurance Important?
Making a meaningful impact on the lives of Indians across the globe with sound & profitable investments. That’s the FINCART dream!
