Health Insurance Guide

Once you pick the health insurance plan that you seek to buy, the next important feature to choose is the Sum Insured (SI) or the coverage amount of your policy. Here, again the great confusion resumes. How to choose the right coverage amount? How much health insurance do you need? All these and more questions will crop up once you initiate to buy a health insurance plan.

In the above case, the comparison of plans helped Simi to make the right decision on buying the right policy. However, now she is perplexed as to how much sum insured or coverage amount does she require to protect her health as well as the health of her parents. Simi knows that the sum insured depends on various things including the type of policy.

Like Simi, if you too are planning to buy a health policy and are uncertain about the sum insured, you must note that in individual plans sum insured simply cater to the needs of the policyholder. Whereas, if it is for a family-floater policy which also includes senior citizens/parents, spouse, kids etc., the SI is shared among all the family members. Thus, you would require an enhanced coverage amount if you are availing a family-floater policy so that all the members of the family are well protected.

So, it is important to include realistic coverage amounts for health insurance. As such, the medical or healthcare costs are soaring high with every passing day. Thus, an amount that might appear adequate now may not be so a few years down the line. So, there is no ideal coverage amount for a health plan and it depends on varied factors. But the market rule states that health insurance coverage should be 2 times your annual income.

Remember, your health coverage amount depends on factors that affect you and your family members, like the type of plan, age of the insured individuals, health condition of the insured people etc. So, consider every aspect before choosing the amount.