Did you know that more than 60% of people in India don’t have any form of health insurance? That’s a scary statistic, especially considering the rising cost of medical expenses. As a responsible family person, you would want to make sure your family is protected, right? Your best bet is a comprehensive health plan and you should probably go for at least Rs 10 lakh health insurance, to ensure adequate coverage. Or should you go for a super high-value sum of Rs 50 – 75 lakhs of the sum insured? With so many options available, determining the right sum insured for your family’s health insurance plan can be confusing.
In this blog, we will explore the factors you need to consider when deciding on the ideal sum insured for a family of four.
What is the right sum insured for your family’s health insurance plan?
If you are looking for a health insurance plan for your family of four, a 10-lakh health insurance plan can be an ideal option. This is because –
- Given the current health care costs, a Rs 10 lakh health insurance can be adequate, if there is no major health issue with any of the family members.
- A usual coverage of Rs 10 lakh health insurance plan will typically offer cashless hospitalisation and reimbursement options, which can help ease the financial burden during a medical emergency.
- A health insurance plan of Rs 10 – 15 lakhs of coverage will also come with several other benefits like ambulance charges, pre and post-hospitalisation costs, daycare treatments and much more.
Why it is essential to buy adequate coverage for your family’s insurance needs?
In today’s world, medical expenses are constantly on the rise, and it is becoming increasingly important to have a health insurance plan in place to protect your family’s financial well-being. Here are some reasons why a 10 lakhs health insurance could be a good choice for your family’s insurance needs:
- A Rs 10 lakh health insurance provides comprehensive coverage for medical expenses, including hospitalisation, surgeries, and other medical procedures.
- It also covers pre and post-hospitalisation expenses, which can help reduce the financial burden on your family during a medical emergency.
- With a health insurance plan of a sum insured of Rs 10 lakhs, you can ensure that your family receives the best medical treatment without worrying about expenses.
- The plan also offers tax benefits under Sec-80D of the Income Tax Act, which can help reduce your tax liability.
How to determine the ideal sum insured for a family of four?
When it comes to health insurance, one size does not fit all. Several factors influence the decision to choose the right ideal sum for your family. As a general rule, for a family of four, you should get at least a 10 lakhs health insurance policy.
The following factors will help you determine the right sum insured:
- Health history and current health status of the family: Consider the health history and current health status of your family members. Do any of your family members have a pre-existing medical condition that may require frequent hospitalisation? If yes, then you may need to opt for a higher sum insured. Also, take into account any lifestyle factors such as smoking, drinking, or being overweight, which may lead to health complications.
- Evaluate the cost of healthcare in your area: The cost of healthcare can vary significantly from one region to another. Therefore, it is essential to evaluate the cost of healthcare in your area to determine the ideal sum insured. If you live in a metropolitan city, you may need a higher sum insured due to higher medical costs.
- Number of members in your family and their age: The number of members in your family and their age also play a crucial role in determining the ideal sum insured. Older family members may require more medical attention, and thus a higher sum insured may be necessary. Also, consider any dependent children with special needs or chronic illnesses. If you have both children and senior dependents you may want to buy a policy with a higher sum insured of Rs 20 – 30 lakhs.
- Determine your budget and how much you can afford to pay as a premium: The amount of premium you can afford to pay is a crucial factor in determining the ideal sum insured. Ensure that the premium amount does not strain your finances. Opting for a lower sum insured to save on premiums may seem like a cost-saving measure, but it can prove to be a costly mistake in the long run.
- Your lifestyle, occupation, and other risk factors: Your lifestyle, occupation, and risk factors are also important factors that influence the ideal sum insured. If you have a high-risk job or indulge in adventure sports, you may need to opt for a higher sum insured. Also, consider any hereditary conditions that may run in your family.
Based on these factors, the ideal sum insured for a family of four should be at least 10 lakhs. You may buy top-up plans or critical illness plans along with the base plan of Rs 10 lakh health insurance. It is important to note that the sum insured should be reviewed periodically, and any changes in the family’s health status or healthcare costs should be taken into account. You can also consider opting for add-ons such as critical illness cover, accidental cover, or maternity cover to provide comprehensive coverage.
To sum it up, determining the ideal sum insured for a family of four required a thorough consideration of several factors. However, by considering the above factors, you can arrive at the right sum insured that provides comprehensive coverage without putting a strain on your finances. If there is no major ailment or medical history then to start with a Rs 10 lakh health insurance plan would be adequate. Periodically review your health insurance plan and make changes as necessary to ensure that your family is adequately covered.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
