How much of health cover do you need?

Advances in medical technology have led to the increase in costs of treatments. And with increasing cost, many individuals are confused regarding the amount of health cover they should purchase. Some experts suggest on buying Rs 10 lakh health cover, but would that be sufficient in the case of occurrence of critical illness? Even simplest of surgeries these days are costing more than Rs 10 lakh. However, we do understand budget limitations are also a thing, which is why we have come up with ways to select just the right amount of health cover for yourself.

How much you can afford?

The bigger the cover, the more will be the premium amount. And not everyone can afford to pay a huge premium amount. So, basically do not look at the cover amount, check for the premium that you will be able to pay. For example, if you earn 6 lakhs annually, you might be capable of paying 12000 in a year which is 2% of your annual income. Thus, deciding by looking at the percentage of your income will help you in making a better decision.

Analyse the current medical pricing trends:

This is the most practical way of deciding on the amount of health insurance you need. Take out the worst possible medical situation that can occur, and research on treatment costs, this way you will be prepared for every unfavourable situation. Make sure you check on medical bills of hospitals that are equipped with technologically advanced machines.

Check your medical history:

There are two things that you need to consider under this category. First, you need to check if you have a family history of any disease. For example, if your father or grandfather had diabetes then you are also vulnerable to develop the same. This will surely give you a rough estimate of how much cover you need.

Another thing you need to check is how much you have spent on medical expenses in the past. If you have spent Rs 1 lakhs in the past five years, this can be considered as a basis for health cover requirement.