How much Sum Insured is Required for a Family Health Insurance?

Individuals with dependent family members must have health insurance to secure their loved ones' health. Having a family floater plan that covers your spouse, up to two children, and dependent parents can help provide maximum coverage.

However, while selecting the sum insured amount for your family, you must ensure that it is enough to cover your family’s health expenses. Keep reading to learn more about the right sum insured amount for your family.

How Much Sum Insured is Enough for Health Insurance in India?

For an individual health insurance plan, the sum insured amount should be at least half of your yearly income. However, for family floater plans, you should choose a coverage amount of at least ₹10 to ₹20 lakhs for a family of four.

If you have dependent parents, the coverage amount will further increase. This helps increase your sum insured amount using the bonus you have accumulated for each claim-free year.

How to Choose the Right Family Health Insurance Coverage in India?

Here’s what you need to look for while deciding on a sum insured amount:

● Assess the Medical Risks

Before selecting the sum insured amount of a health insurance policy in India, you should factor in your health risks. For instance, diabetic patients are more prone to strokes, heart issues and other related complications. So, make sure you have enough coverage for such medical conditions.

● Consider Family Health History

A family health history of diabetes, autoimmune diseases, cancer, etc., increases the risks of these diseases for you and your family. Always ensure your health insurance includes coverage for such diseases.

● Consider your Lifestyle Habits

An unhealthy lifestyle, such as poor eating, consuming alcohol, and smoking, can lead to various health complications. So, make sure your sum insured covers such health issues as well.

● City of Residence

The living expenses in tier-1 cities are higher than those of tier-2 and 3 cities. For instance, you should choose a minimum of ₹30 lakhs coverage for family plans in tier-1 cities. However, for tier -2 and 3 cities, the amount should be ₹20 and ₹10 lakhs respectively.

What are the Factors to Consider While Choosing a Sum Insured for your Family?

The following factors should be taken into account while choosing a sum insured for your family health insurance plan:

● Number of Members in your Family

It directly influences the coverage amount since you need higher coverage if you have more family members. For instance, a family of four should get a minimum coverage of ₹10 lakh to ₹20 lakh.

● Medical Issues of a Family

If any particular medical condition persists among the family members, you should opt for a higher sum insured to ensure enough coverage.

● Age of the Members in Your Family

The minimal amount of health insurance coverage you require also depends on the age of each family member.

In contrast to a family of three with two adults under 35 and a child under 12, a family of three with two adults over 40 and a child over 15 needs more coverage.