How Much Health Insurance Do You Really Need in India? A Complete Guide

What is Sum Insured in Health Insurance?

Sum insured amount, commonly termed as SI, is the maximum financial coverage of a health insurance policy in a policy year. It is the maximum amount your health insurer will provide in case of a medical need. For instance, if the sum insured amount is ₹10 lakhs, the maximum medical coverage provided will be ₹10 lakhs. Medical expenses rising beyond SI may not be covered by the health insurance provider.

Note: Health insurance policies may also have sub-limits. These are the maximum financial coverage provided for specific ailments of hospital care. For instance, the sub-limit for ICU could be ₹2,000/day.

The Ideal Health Insurance Coverage in India

You may wonder how to decide the right amount of health insurance coverage in India. You may ask, “How much medical insurance do I need?” To answer this, it is important to consider these factors:

Age

Age is an extremely important factor that influences the amount of health insurance coverage one requires. In general, young people have less risk of getting sick, which means that they can initially take out lower coverage and then increase it slowly as time goes by.

Older people are more likely to experience health issues and make insurance claims; therefore, they are faced with higher premiums. Consequently, the purchase of sufficient insurance at a young age not only makes it possible to spread out the costs over a long period but also provides protection when healthcare needs grow with age.

Health

The state of your health is another important factor that determines the appropriate level of health insurance coverage. Being fit and free from any medical problems, you may find it enough to start with a lower coverage. If you have a health condition or anticipate regular medical checkups, it is better to choose higher coverage. By choosing the right coverage early, you are protected from sudden, significant premium increases as the risk of health issues increases with age.

Location

Healthcare expenses are also determined by your place of residence. For instance, the medical treatment costs and hospital services in tier-2 and tier-4 cities may be cheaper than those in metro cities like Mumbai or Delhi.

In addition, hectic city lifestyles and higher pollution levels may also lead to frequent health problems. Consequently, people living in metro cities need higher health insurance coverage to manage rising medical costs effectively.

Income

When analysing how much insurance do I need, another important aspect to consider is my income. Opting for a plan with premiums that put pressure on your monthly budget can have a bad effect on your overall financial stability. Health insurance should be a source of protection against medical emergencies, not a financial burden.

Hence, it makes sense to choose affordable coverage. Such a policy provides adequate protection, thus keeping your finances safe, and at the same time, it also offers you meaningful health coverage.

Tip: Compare different health insurance plans before choosing the right one. From premiums to coverages, everything essential must be compared to make the right decision.

To Conclude

Health emergencies can occur to anyone and are often sudden. Above all, accidents and mishaps can be unforeseen. While you may not be able to avert such situations always, you can be prepared to fight against the odds. A single hospitalisation can drain years of savings. So, it is crucial to choose a health insurance plan with sufficient coverage. It may not be right to get under-insured for a minimum health insurance premium or over-insure out of fear.

When it comes to smart financial planning, the right health insurance coverage is also a part of it. At Jio Insurance Broking, you may compare different plans to choose from a range of options.

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