With advancements in medical sciences, people are living longer but are not necessarily healthier due to their lifestyle and environmental variables. The unpredictability surrounding one’s health makes it practically impossible to have any control over healthcare bills. In contrast to a few years ago, everyone today is more susceptible to hospitalisation. However, after you’ve signed up for an appropriate Health Insurance Plan, you’ll feel more secure about the costs of your medical treatment.
Why is Health Insurance Crucial?
Here are some aspects that highlight the importance of a Health Insurance plan:
- Changing Lifestyle: Various health hazards, from lifestyle disorders to pollution-related illnesses, have been on the up because of the rising stresses of the contemporary lifestyle. Getting an appropriate Health Insurance Plan for yourself and your family is crucial.
- Rising Medical Expenses: India’s medical inflation has recently outperformed its retail counterpart. The price of medications, diagnostic testing, hospital stays, and procedures is rising. Instead of paying outrageous medical costs, it makes more sense to pay the minimal Health Insurance Subscription and get insured.
- Tax Benefits: Health Insurance offers tax advantages in addition to financial security. According to Section 80D of the Income Tax Act, premiums for those under the age of 60 are eligible for a deduction of up to Rs 25,000, while those for senior citizens are entitled to a deduction of up to Rs 50,000.
- Offers Pre-Existing Disease Coverage: Most Health Insurance Plans provide coverage for pre-existing conditions; however, this coverage becomes effective once a waiting period ends. Hence, you must choose a plan with a short waiting period if you want instant coverage for a pre-existing condition.
- Provides coverage for pre- and post-hospitalisation expenses: The plan covers your pre- and post-hospitalisation medical expenses. Your chosen plan’s version and payment amount will determine the coverage.
Minimum Medical Coverage Necessary for an Individual
A person should always choose health coverage above Rs 3 lakh while choosing a Health Insurance Plan in their early years. This will assist them in obtaining the crucial insurance needed to cover any medical bills that may come their way. Also, since you have a low likelihood of filing a claim while you are young, you are more likely to qualify for the no-claim bonus or cumulative bonuses, resulting in an annual increase in your total amount insured of up to 200%.
Medical Coverage Requirements for a Family
Medical inflation is expected to be 15% per year, driving up the expense of healthcare. No matter how old a person is, not having Health Insurance can be risky because of the escalating expenses of healthcare.
To get the most out of a Health Insurance Policy, having the ideal combination of coverage is crucial. In India, most policyholders insure their families for an average of Rs 7-9 lakh. Go for at least an amount insured of 10 lakhs for 2 people and 2 children.
Medical Coverage Required for Senior Citizens or Parents
When choosing the degree of coverage, you must be practical. The cost of even a minor, standard surgical treatment can easily reach Rs 1 lakh, and the price will undoubtedly increase over the coming years. A sum insured that seems reasonable now might not be enough to pay for your medical costs in a few years. So, it is recommended to consider inflation while choosing the amount insured. Also, if your parents are elderly, they will undoubtedly need a greater insurance payout, and their premiums will be higher.
Is There Any Fixed Amount or Level of Coverage to Consider?
The appropriate level of coverage relies on several factors, including your preferred hospital, your present age and health status, the age and health of your family members, your budget, etc. You can decide how much Health Insurance Coverage is appropriate for you through the general guidelines mentioned below:
- Take into account your medical history, present health, and any continuing treatments. You may require more insurance than someone who is typically healthy if you have any chronic medical issues.
- Lifestyle decisions, such as smoking or drinking alcohol can affect your health and the type of insurance you require.
- Check your budget. Remember that more varied coverage often corresponds to higher premiums.
- There are many levels of coverage available under Health Insurance Criteria, including basic, standard, and premium. If you need medical treatment more frequently or have more complex health demands, you should select a higher level of coverage.
- Consult with an insurance agent or broker to get professional assistance.
Although there is no ideal sum for an individual’s Health Insurance Policy Criteria, there are two widely accepted principles to determine its quantum. Initially, your insurance should account for at least 50% of your yearly salary. Second, the insurance policy must at least cover a coronary artery bypass graft at the hospital of your choice. Usually, personal finance experts advise having at least Rs 5 lakh in Health Insurance. You can add your family members to a Family Floater with a comparable amount assured.
Because of the escalating cost of medications and treatments, Basic Health Insurance may not cover the recovery-related costs of intensive nursing care, therapy sessions, and rehabilitation. Yet with options like Riders and Top-Ups, you can significantly improve your health coverage without paying a corresponding increase in the price.
An extension that extends the advantages of this policy is known as a Rider. When reaching a deductible cap, hospitalisation is offered. Top-Up Plans are less expensive since the insurer is not required to cover minor claims, but they are necessary when sickness is severe enough to cause your basic treatment costs to exceed Rs 5 lakh.
The Bottom Line
Even if there isn’t a perfect insurance coverage level mentioned, maybe this article guide will assist you in selecting the finest option and the right Health Insurance Criteria for you.