When it comes to buying a health insurance policy, most of us feel confused or clueless. First of all, there are so many terminologies in the field of health insurance. Secondly, not many people understand the process of deciding the right amount of coverage. How much coverage is enough to meet your healthcare expenses is something you must figure out before buying a policy. There is no point in buying a policy that fails to provide sufficient financial support when the need eventually arises. If you are underinsured, you might end up spending a lot from your pocket at the time of availing medical treatment. So, let us take a look at the factors that determine your health insurance policy’s coverage amount.
Factors that determine your coverage amount
- Medical inflation
Just like the price of any commodity or services, the cost of medical and healthcare treatment procedures is also rising day by day. What you are spending today for a medical procedure might cost more in the days to come. So, if you want to get a medical cover against certain diseases or illnesses, you must keep in mind the factor of medical inflation. If you are buying a health insurance policy that covers you for 20 years, you must take into account the effect inflation would have after 15 or 20 years on the same kind of surgeries or medical treatment.
- Your age
Whether you are prone to a wide range of diseases is something that depends a lot on your age. If you are in your mid-20s or even 30s, you are healthy and less vulnerable to serious health issues. As people grow old, their immune system becomes weak, making them prone to a wide range of diseases, such as diabetes, arthritis, high blood pressure, etc. If you are young, you can go with a coverage amount of 5 or 6 lacs (INR). But once you enter in your 40s, you must go for at least 8 lacs (INR) for your health insurance’s cover. Likewise, as you grow older, you should opt for a higher coverage amount.
- Your profession
Besides your age, your profession also matters a lot in determining your health insurance cover. If you are someone who mostly sits behind the desk, and have a sedentary lifestyle, you are more likely to develop heart-related issues at an early age. So, you must choose a higher coverage amount in that case. Likewise, if you work in a chemical factory, at construction sites, or at any place where you are constantly exposed to pollution and chemicals, you must choose a higher coverage amount. It is obvious that you will have to pay a higher premium. But, it would be a wise decision for sure. So, consider your profession at the time of choosing the coverage amount.
- Individual or family floater plan?
A lot of people go for family floater health insurance policies these days. The coverage amount you pick for an individual policy should not be the same as that of a family floater plan encompassing four or five members of a family. You can increase the amount by using a “top-up” plan.
- Your location
The city or state where you live is another major determining factor. If you live in a small town where the healthcare and medical treatment expenses are relatively low, you can manage with a low coverage amount. But if you are living in a metro city like Mumbai or Bangalore, you should consider the difference. Most of the hospitals and nursing homes in the big towns charge a hefty amount for their services.
So, those are some of the factors that can help you decide the right amount for your health insurance coverage. When you compare the available health insurance policies online, you should keep these factors in mind to get an accurate figure. Besides them, you should also consider your family’s medical history. If your family’s medical history showcases some critical illnesses, you should opt for a higher coverage amount. It will make you feel less worried about your future.