How much medical insurance do you need?

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medical insurance, Since the COVID-19 epidemic began, the minimum recommended level of Health insurance has increased from Rs 5 lakh to Rs 10 lakh. However, there are a number of variables to consider, beginning with your current location. Read on to see what they are.

Many presumptions regarding health insurance have been challenged by the unprecedented economic and health crises brought on by the COVID-19 epidemic.

Today, many people are aware of the dangers of relying only on group health insurance plans offered by their employers. Similarly, Rs. 5 lakh is insufficient to cover.

Regardless of your current age, Moneycontrol has emphasized the necessity of having a sufficient, independent health insurance policy in place during the past two years. Not only in relation to COVID-19 but also to protect your cash from serious illnesses that could result in astronomical hospital expenditures.

Here’s the skinny on correctly assessing your health insurance needs and choosing the sum insured that best meets your requirements as we present our renowned Moneycontrol-SecureNow Health Insurance Ratings to assist you in choosing the finest policy.

Greater health coverage is required for metro dwellers

One of the main factors affecting the extent of your cover is where you live.

For instance, the cost of healthcare varies greatly between Delhi and Bhubaneshwar. Most people use local healthcare services. Accordingly, you should at least take into account the cost of healthcare in your state of residence, advises Bhabatosh Mishra, Director of Underwriting, Products, and Claims at Niva Bupa Health Insurance.

You should consider the hospitalization costs in the state capital even if you do not currently reside in a large metropolis.

Your requirements will be important.

If you anticipate using specific hospital amenities, you will require a bigger sum promised.

Can you deal with a shared room or do you prefer a private room? Or wouldn’t you want a lavish room in its place? A Rs 5 lakh cover will rapidly be used up if you choose a deluxe accommodation, according to Amit Chhabra, Head of the Health and Travel Division.

Additionally, you must search for a product without room rent sub-limits if you desire an exclusive room. This could result in increased rates and perhaps even a larger cover.

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Age and medical history are important.

Older age groups require more comprehensive health insurance due to the likelihood and frequency of their needing treatment for chronic illnesses. “Lifestage is important. Your needs will change between the ages of 35 and 55. We require substantial health insurance coverage as we age since chronic illnesses begin to develop and cancer incidence rises. These medical procedures are pricey, according to Mishra.

And for this reason, elderly people require covers that are as broad as they can afford. It is advised to avoid including your parents in your family floater cover because the increased number of claims can quickly deplete the overall coverage for the policy year, leaving other family members exposed. Make sure to purchase a different policy for your parents. Consider senior citizen coverage for your parents if their pre-existing conditions prevent them from obtaining a standard policy at reasonable premiums.

Must have a minimum of Rs. 10 lakh in insurance

Purchasing a sizable cover might satisfy your needs while also getting rid of restrictions like room rent sub-limits, proportionate deductions, and co-pay ratios.

You must, however, take into account your ability to pay. Higher rates are also associated with a big insured amount. You must therefore balance your needs with your available funds. According to Abhishek Bondia, Principal Officer and Managing Director of SecureNow Insurance Brokers, “In absolute terms, a Rs 10 lakh cover is essential for everyone.”

He also offers a general principle. You require health insurance that is as expensive as your annual pay. This is because many illnesses are connected to your lifestyle, which is connected to your money,” he continues.

Unlike earlier when families could get by with them four to five family members, Rs 5 lakh coverage are no longer sufficient. In a family, you should have a cover of Rs. 10 lakh per member, advises Chhabra.

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Do you require a cover of Rs. 1 crore?

The answer to this issue again depends on the type of facilities you are looking for and the expectations you have for your health insurance.

If funds permit, Chhabra thinks a person should have a cover of Rs 1 crore “The enormous amount covered need not be extremely expensive.”. A Rs 1 crore sum insured could cost about 5-7 percent more than a Rs 10 lakh policy, the expert claims.

Keep in mind, too, that because these are yearly renewing contracts, there may be periodic increases in the cost of health insurance. Future price increases by health insurers for these coverages could put them out of your price range.

Additionally, a Rs 1 crore cover is largely required for pricey medical operations that don’t occur frequently. “Statistically, achieving 100% coverage is unattainable. You require a level of protection that will make you feel secure. Do you want to be prepared for 98% of potential outcomes? If so, perhaps cash assured of Rs 1 crore would be sufficient, claims Mishra.

Instead of purchasing a single, high sum covered, you can consider combining a base policy of, say, Rs 10 lakh and a top-up cover for the remaining amount if you are confident in the value of a Rs 1 crore cover but are concerned about affordability. The main benefit of a combo option is that the total premium outlay will be less.

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