A health insurance policy provides the much-needed financial backup during medical contingencies. The insurance provider offers coverage against hospitalization expenses such as nursing charges, surgery fees, cost of medicines, and room rent, among others. It is, therefore, important to invest in a mediclaim policy without fail.
One of the most important aspects to keep in mind while opting for medical insurance plans is the level of coverage. The amount must be adequate enough the meet the cost of treatment, else you may have to make out-of-pocket expenses for the same. Failing to do so may lead to a financial burden. You may have to compromise on the quality of treatment. For this purpose, you need to have an approximate idea of how much cover is required.
You may keep the following six points in mind while deciding the coverage amount.
1. Your ability to pay
In order to avail of the benefit of medical insurance plans, you are required to pay a premium amount. Since the premium amount is directly proportionate to the level of coverage, you may opt for a coverage that is well-suited to your budget. After assessing how much you are able to afford, you may go ahead and opt for a health plan of the desired coverage.
2. Family history of illnesses
Many often fail to factor in this aspect when they buy health insurance policy online or through their agent. It is imperative to consider your family history of illnesses while deciding the appropriate coverage. Remember, the probability of lifestyle-related illnesses being passed on to the next generation is higher. Hence, you may opt for a greater coverage if your family is known to suffer from diseases such as heart attack, cancer, and hypertension, among others.
Another important factor to consider while investing in medical insurance plans is your age. Individuals in the lower age category are at a lower risk of contracting a medical condition or a disease. Hence, you may opt for a lower coverage amount if you are young and healthy. Purchasing medical insurance plans when you are younger offers the benefit of a lower premium. As you gradually age, you may increase the coverage amount.
4. Your choice of hospital
While selecting the hospital to get admitted, you may choose from among various private-based and public hospitals. For a similar kind of treatment, some hospitals may charge a lower amount, while some may be expensive. Hence, depending on what kind of hospital you would choose to be hospitalized, you may determine the level of coverage accordingly.
5. Medical inflation
The cost of healthcare expenses is increasing by the day. It is estimated that the current medical inflation is around 15 percent. This indicates that the cost of surgery and medicines is much higher than what it used to be a few years ago. You may, therefore, factor the rising medical inflation while deciding the level of coverage. If you are not financially prepared, it may burn a huge hole in your pocket and disrupt your well-calculated budget.
6. Your annual income
You may opt for a coverage amount that is a percentage your annual income. In an ideal situation, you may consider a health cover that is at least 50-100% of your yearly salary. Accordingly, you may determine the coverage amount, while factoring in the cost of rider options as well.
You may, therefore, keep the aforementioned points in mind while deciding how much health cover you need. The health coverage varies from individual to individual, and it is important to make a wise decision. Once you have decided the coverage amount, you may walk into your nearest branch or invest in online health insurance plans, thereby securing your future against medical contingencies.