The need for health insurance differs from one person to another. If you are wondering about how much health insurance you would need, several factors need to be understood to determine the exact coverage requirements.
Factors considered while deciding health insurance cover-
Premium payment- Your ability to pay is the first important factor in deciding the health insurance cover. When you choose a policy with a higher sum assured, you will have to pay more premium. Therefore, individuals must assess their financial ability to pay the premium and then choose the health cover as per their requirement.
Annual income percentage- Your annual income is directly proportional to the health insurance cover. The annual income is considered by your insurer to determine the maximum health insurance coverage for which you are eligible.
Family medical history- Your family medical history is another factor that affects your health insurance cover. The insurer will look at the history of health problems of your family members to evaluate the risk of the insured contracting the same. Individuals falling under the high-risk category should get a comprehensive high cover health insurance policy.
Age of the insured- Your age is another important factor that will affect your health insurance coverage. Individuals who have bought the policy when young, can avail a huge discount on premiums. However, individuals who are above 45 years of age would have to pay more premium due to the involvement of high health risks.
Type of hospital- Your health insurance coverage is also affected by the grade of the hospital that you choose. The rate for the same treatment might differ in a different hospital. Thus, the amount of coverage that is needed should be determined by calculating the expenses that might be incurred from the hospital of your choice.
Tax benefit- When you avail a health care plan mainly for tax benefits, then you need not take comprehensive health insurance coverage. You can evaluate the amount of tax deduction you wish to avail through the policy and then purchase one that meets your requirement.
Supplement to health insurance coverage offered by the employer- Though most of the companies offer health insurance to their employees. It is not a good idea to solely depend on the coverage provided by your employer. Besides this, you need to take an alternative health insurance policy. It will help you to be prepared for any medical emergencies that may arise in the future.
To decide the right coverage under your health policy, you need to keep in mind your long-term financial obligations plus analyse the factors mentioned.