How Much Health Insurance Should I Buy


Health investment is the best investment, though good health is not something we can buy, one must know why having a health insurance is so important. Ill health is not something we can comprehend beforehand, but the effect it has on us both mentally and physically is phenomenal. Family, friends and loved ones are always there to give emotional support, doctors give mental peace but it is the Insurance companies that save you from the financial burden.

Hospitalization is expensive, it is also uncalled for and in this financial crisis, and health insurance comes as a saving grace. It pays part of the hospitalisation expenses on your behalf.  Your doctor’s fees, hospitalisation expenses, post- hospitalisation medical care etc depending on the terms and conditions of the policy.

Who needs health insurance?

The answer is anybody and everybody! Medical expenses today touch the sky and you will be convinced when you read further. Today an open heart surgery or an Angioplasty costs 3-4 Lakh. A simple Gall bladder removal costs 1-2 Lakh. With Knee replacement becoming more and more common a person has to shell out a whopping 2.5 lakh for each knee. These costs are an estimate and vary from hospital to hospital.

Medical expenses are not the only loss; a person might suffer a business or salary loss if he/she is missing office for a few days. Apart from this the daily conveyance and petty expenses cannot be ignored.

How much is just enough?

Many of us wonder how much health insurance is just enough and sometimes we do not have an answer. Sometimes because this is not something we thought was important and sometimes because this is not something that we read about. This article will clear your doubts on how much health insurance you should buy. Buy what you can afford, one is free to take multiple policies from different insurance companies. So if you can shell out a particular amount each year then buy the maximum health insurance policies.

The rule is you can have multiple policies from different insurers and then get paid in proportion of the sum assured. For instance you have two insurance policies with a cover of 5 lacs and 2 lakhs each then you claim a value of 3.5 lakhs, you get the claim from both the insurers. The first will pay 2.5 and second 1 lakh.  If you are young then a cover of 1-2 lakh is enough, but as you grow older it is advisable to build up the amount. You have the option to take individual policies for each member of the family or a joint family floater policy to insure all the members of the family.

Employers these days buy insurance policies for their employees, it is upon you to decide if that alone is adequate.  Buying health insurance alone will not suffice, a good plan is equally important to make the effort worth the investment. Choose the plan wisely as not all plans are equal. For instance, if you choose a joint family floater plan, only one member of the family can claim in a year. The others have little or no cover; if you have older people in the family an individual plan is just right. You might also want to enquire about the critical health plan which will supplement your basic health plan.

Take to your insurance agent and opt for a policy that best solves your purpose.

Updated: November 25, 2016 — 5:42 pm

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