How much health insurance do I need?

How much health insurance do I need? The answer mainly depends on your age, city, health condition, and family size. However, individuals who are young, healthy and work in a corporate sector that provides group health insurance should consider a health insurance with a lower sum insured. On the other hand, if you are 40 years or above, you should buy a policy with a high sum insured.

With healthcare expenses rising every year, even a short hospital stay can come up with hefty bills, especially in tier 1 cities. Therefore, it would be safe if you choose a plan with higher coverage.

What is the Ideal Health Insurance Coverage for You?

Below is a guide that may help you understand the amount of health insurance coverage you need:

However, note that the numbers mentioned above are general suggestions. The ideal health insurance coverage can vary based on your age and health requirements.

Things to Consider

The following are the factors that you should consider while selecting the right amount of health insurance coverage:

1. Your age:The age of the insured should be kept in mind while deciding on health insurance coverage. If you are 40 or above, then the sum insured amount should be higher.


2. Type of Plan: If you are purchasing an individual health insurance plan, you can opt for a lower sum insured. However, if you are buying for the entire family, go for a higher coverage amount.


3. Lifestyle Habitats:If you smoke, drink or are involved in any dangerous activities, you should go for higher coverage.


4. Health History:Consider your pre-existing diseases, if any, and medical history before selecting a sum insured for the plan.

What Should You Look for in Your Health Insurance Policy?

Beyond the coverage amount, also look for the following features in a health insurance policy:

• No restrictions on room rent capping


• Annual health check-ups


• Day-care procedures coverage


• Restoration advantages


• Wide list of cashless network hospitals


• Shorter waiting period for pre-existing diseases


• No restrictions on claims or co-payment clauses.

Final Thoughts

Picking the right amount of health insurance depends on some factors such as your lifestyle choices, health history, family structure and many more. However, health insurance experts suggest buying a Rs. 5-10 lakh policy for individuals, and a Rs. 10-20 lakh policy for families.