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We often buy health insurance without thinking much about the cover size. It is only when the claim arises that we realise the gap between the hospitalisation cost and the actual coverage amount. It is therefore important that you don’t blindly pick any number but think through the cover size that could give complete protection to you and your family. Here are a few things you should consider before deciding on the cover amount:

1) Take the city you live in into consideration
It is seen that the average claim size in small cities is lower than in metro cities. This is because the cost of hospitalisation is much lower in smaller cities. In metro cities, we see more cases of lifestyle diseases, while there are more infectious ailments in rural India. That is why it is important to look at how much insurance coverage you actually need. Moreover, in 2020 we saw how the Covid-19 pandemic changed the world that we live in. The need for health insurance was felt like never before as high hospital bills were reported throughout the country and people with no or low heath cover found themselves helpless.

2) Which stage of life are you in?

The person who is retiring will have different needs than the person who has just started their career. The elderly have a higher chance of falling sick and therefore the need for coverage will be higher than a younger person. Similarly, an individual with kids will need a higher sum insured to cover their family. Having said that it is always good to buy a health insurance policy when you are young as premium rates are much lower when you are hale and hearty compared to old age.

3) Will it be sufficient for the future cost of hospitalisation?

Medical inflation is very high in the country. Experts say it is as high as 10% given the rise in lifestyle diseases. It is therefore important that you buy a cover keeping in mind the future cost of hospitalisation. If you already have a policy you can increase the cover by buying a super top-up policy. Top up policy gets triggered when your hospital bills exceed a specified limit known as deduction. The policy covers the amount exceeding the deductible amount.

Evaluate your needs and decide on the adequate size of your health insurance coverage for the complete protection of you and your family.