How Much Health cover do you require?

By Tom Craig

Right from childhood we know that health is wealth. But due to the rising cost of healthcare industry, ever escalating inflation rate, expensive medication, treatment, accommodation and operational cost, buying a suitable health insurance policy to protect the wealth of our life has become extremely difficult for us in today's time.

Today, a hospitalization for a serious illness can cost you lakhs or above which could be financially punching, leaving a huge hole in your pockets if not backed-up with adequate health plan. Not only is your hard earned money getting spent like water but also it causes mental stress leading to slow recovery financially, mentally and physically together.

Now that you're aware the importance of health plan the next thing that runs through your mind is how much insurance do I need to cover up myself and my family? Different advisors will suggest different figures that could be anything between 3-10 lakhs or even more. While all are correct practically speaking it's impossible to come to any particular number for your future healthcare needs. But you can surely gauge an amount based on your incomes sources, current health issues, age and demographics, inflation etc.

The article helps you determine some factors to understand how much health insurance you might require in future:

Affordability

Your income sources and affordability plays an important role in deciding the amount of health cover you should take. Your health adviser might suggest you 10 lakhs cover but are you able to afford the policy premium? This is the answer you need to derive. Exercise prudence based on your past experience and take a well informed decision accordingly. This is where a financial planner or expert will help you evaluate and manage the entire spectrum of your insurance and investment needs.

Demographics

Your living conditions; working conditions, demographics play a very major role for determining health cover. If you live in a small or mid-sized town, then the hospitalization for a major illness will obviously save you few lakh of rupees compared to the cost incurred in the metropolitan cities. Try opting for a health cover, based on estimated expenses for, if at all you struck with major illness.

Employer's group health insurance

Some employees are covered under their employer's group health insurance policy. Although it may cover your expenses to a certain aspect but it won't cover entire charges on your critical or major illness since it's a group plan and not the coverage remains same across all employees. It is advisable check with what kind of benefits your employer's group insurance policy offers, total amount and nature of illnesses that your company's group insurance covers.

Family situation:

If you have a family or dependents to take care of, your health insurance needs will go up. You should always ensure that your entire family is covered in your health insurance policy. If you are newlywed or have dependent parents, make sure that your spouse and your parents both are covered well. It makes more sense to buy a family floater plan. If your dependents have pre-existing medical conditions, then you should estimate the associated costs and include it in your cover as well.

Past experience

Your past experience on medical costs is one of the most important factors of determining your health coverage. It helps you determine your future medical expenses, places where you can cut down and things you need to take more care & cover for and give due priority.

It is advisable consult an experienced financial expert, who will work with you, to opt for comprehensive health insurance policy.  A well balanced and adequate health insurance policy will make you free from health related financial concerns and focus on other important financial goals in life.

About the Author

Tom Craig

Hi, I am Tom C working with insurance company as insurance adviser owing good knowledge of various policies such as health insurance, Home... (show bio)

Article Source: http://www.articlesbase.com/insurance-articles/how-much-health-cover-do-you-require-7346958.html

Related Posts:

Tweet