Due to the development in medical science in the last few decades, human life span is increasing. However, as a result of other factors and changing lifestyle, people living especially in cities have long lived but they are not as healthy as they are today.Due to the ever-increasing number of vehicles, the number of accidents is also increasing continuously and in addition to the deterioration of lifestyle, lifestyle diseases have started increasing rapidly. From newborn to senior person, more hospitalizations are seen today than ever before.
Along with this, medical costs are also increasing at the rate of 15% per annum, healthcare has also been witnessing a steady growth for the last decade. Due to rising healthcare costs, not having a health insurance policy can be risky regardless of one’s longevity. No one can foresee when he might get sick and end up in the throes of exorbitant medical bills.If there is no preparation in advance, then once admitted to the hospital, even the family’s thought-out budget can easily get spoiled. Given these possibilities, it is considered very important to have a good health insurance policy to deal with any emergency medical emergency and health related security for you and your family.
Having a good health insurance policy is good but it is now considered a basic necessity. Similarly, it is equally important to have the optimum protection cover mix to get the full benefits from a health insurance policy. Most of the insured in India prefers to take 2-3 lakhs for themselves and a common person takes lesser insurance cover for himself.
You also need to keep a few facts in mind while taking the cover of insurance. In today’s time, even a small surgical procedure costs as little as Rs 10,000. The cost of bypass surgery in any good and well-known hospital can be at least more than 2 lakhs, which can be even more in the next five years. The insurance cover taken for medical expenses today seems appropriate but it may be insufficient for healthcare expenses in the near future. Hence it is suggested that before determining the sum insured it is necessary to take into account the inflation.
Then is there an exact ‘amount’ that needs to be kept in mind while taking health insurance online? While determining the right amount for insurance cover, it is important to keep in mind various factors like which hospital you prefer to get treated in, age of you and your family member, health condition and your affordability etc. Medical costs generally depend on the nature of the hospital and also the facilities availed. For example, the cost of replacing a person’s knee in a well-known hospital can be almost twice that of an ordinary and small hospital. Therefore, the sum insured of your health insurance policy should be determined on the basis of your income and lifestyle.
While there is no ideal amount for an individual’s health insurance sum assured, two market-based rules have been framed in this context:
First, your Sum Assured should be at least 50% of your total annual income. And second, the insurance cover must be at least equal to the cost of a coronary artery bypass graft at the hospital of your choice. Most private financial experts recommend an insurance cover of at least up to 5 lakhs. You can take a family floater of the same amount for the insurance cover of your family members.
Due to rising cost of medicines and treatment, the cover of your individual health insurance policy may fall short to cover all the expenses. General health insurance policies may not cover expenses incurred during the recovery period such as comprehensive nursing care, counseling sessions, rehabilitation etc. But you can also enhance your health cover without paying any extra premium to your general insurance policy with the help of tools like riders and top ups.
A rider is an add-on that gives you additional benefits. The rider hospitalization charges normally available with a health insurance policy, but it is available only after exhausting the threshold limit available in the name of exemption. The discount is not actually covered by the insurance company and is paid by the insured. The discount provision makes top up plans a bit cheaper as the small amount of claim under it is not paid by the insurance company. In case of a serious illness (such as a heart problem) the cost of your initial treatment itself can be 5 lakhs or more and you may need top up cover for this.