How do I decide how much Sum Assured to take in my health plan?
Maintaining good health is easier today than it was a few decades ago. Advancement in sciences and pharmaceutical studies, plus easy access to nourishing diet and health centers have substantially improved our life span. Yet, stressful lifestyle conditions and exposure to toxic external elements have led to people living less healthier lives today. Moreover, unexpected accidents and casualties can neither be predicted nor be avoided. People are also more prone to lifestyle diseases and age-related disorders at a younger age than before.
The cost of medical treatment, be it for a minor procedure or critical surgery, is rising exponentially. Funding such costs out-of-pocket leads to a serious and long-term dip in personal savings. All of us do our bit to be more proactive about living a healthy life. At the same time, we need to be equally proactive about having the right health insurance plan to protect us from financial strain due to hefty hospital bills. The right health insurance means comprehensive coverage for most medical treatments, as well as an adequate sum insured amount.
Is there really a magic number to the sum insured? The answer depends upon a combination of key factors that influence what the right amount of coverage should be. These are:
1) Age and gender: As a general rule-of-thumb, the sooner you apply for health insurance, the better. Taking health insurance at a young age would be beneficial, for you would pay far less premium for a higher Sum Insured amount. The older one gets, the more one’s propensity to need medical attention, therefore higher the coverage amount required. Gender also plays an important role since women are more susceptible to female-oriented health needs and concerns (maternity, reproductive organs-oriented conditions etc.).
2) Location: This determines the prevalent cost of hospitalization and medical expenses. You need to check the network hospitals the insurer has in the area where you live and the types of rooms offered
3) Premium amount you can afford to pay: As with any product, you have to fit it to match your purse. It should be an amount you are comfortable paying each year
4) Personal profile: Are you planning to get married or start a family soon? In that case, it would be advisable to opt for a Sum Insured that adequately covers your spouse and child/children in future.
5) Lifestyle: Your lifestyle and diet choices, the kind of job stress you face, whether you indulge in alcohol or tobacco intake – all these factors pave the way for one’s health needs in the course of time. Be mindful of these conditions, when deciding on the amount of coverage under your health insurance plan.
6) Family dynamics: When deciding to take health insurance, consider your family profile too. For instance, would you like to include your elderly parents in your family floater health insurance? Or should you opt for individual health plans for them? The idea being that each individual insured member should get sufficient medical cover and sum insured for present and future medical needs.
7) Health conditions: Whether for an individual medical insurance plan or for a family floater plan, do take into account each insured member’s present and past health situation. Any history of health conditions seen in the family could lead to possible similar conditions in future. Hence, it should be noted and factored in while deciding the amount of health insurance to go for.
8) Medical expectations: You and your family’s future health needs would depend upon medical history and present health conditions of each member. Certain forms of treatment cost a lot more than others. If those are the kind of treatments you expect to get in future, it would be best to factor related costs while opting for the right amount of Sum Insured.
Based on these key factors, you can determine the right personal choice for adequate Sum Insured in your health plan. Once you have figured the right amount, you could select a few plans from different insurers to compare the features and benefits offered. This will help you be in a better position to decide which would be the most optimum health insurance scheme for you and your family.
At SANA.Insure, we first understand your profile, needs and expectations, based on which we offer suggestions for the right sum assured and health insurance plan to opt for. Our portal sana.insure has been designed to allow easy selection and comparison between different medical insurance plans. The product benefits, features and conditions are displayed in simple and easy-to-understand language for your convenience. Besides, if you require any assistance along the way, our Health Insurance Buddies are a call or WhatsApp chat away. Simply click on “Call” or “Chat” icons on the portal to connect with them for more information.
Wish you a healthy and happy life!