Health insurance is the savior when it comes to rescue us from the monstrous expenses one incurs for the treatment of medical emergencies which include treatment of critical illnesses and also Out Patient charges. Factors that should go into thinking when deciding on the amount of Health Insurance You need are discussed below.
Ability to Pay Premium:
One of the first criteria to be used is the ability of the person to premiums regularly as the premium is directly proportional to the sum assured chosen. Not everyone can afford the premium for Rs 20 lakh cover, as it will be huge.
Percentage of Income:
One should have health insurance equal to 50 to 100% of your annual income and if you have spent over 3 lakh on medical expense over past 3 years then the person should add another 3 lakhs to the sum assured.
So if person annual income is R 4lakhs and medical expense over the last 3 years is 3 lakhs then the total sum assured to be chosen would be 7 lakhs.
Family History:
If the family of the person has a history of lifestyle diseases then the probability of it being passed on to the next generation is higher. Any person who falls in the genetically high-risk category, the person should buy wider health insurance coverage when the person is young and healthy.
Age:
A crucial factor in determining the amount of coverage is the age factor. If you are 25 years of age you can take up Rs 5 lakh to Rs 10 lakh of cover whereas for a middle-aged person close to 45 years, needs to buy high coverage as the options for buying health insurance decreases.
Keeping Specific Hospitals in Mind:
People can also decide on the sum assured for the health insurance policy depending on the specific hospital. For a similar treatment Hospital, A charges Rs X whereas for Hospital B charges are 2X. Depending on the type of hospital or grade of the hospital one could determine the amount of health cover required.
