Health insurance is an essential financial investment today. No matter your age or gender, having a financial safety net to protect yourself and your savings from medical emergencies is necessary.
But if you're asking, “How do I determine the ideal health insurance coverage for myself or my family? What is the right way to estimate how much health coverage do I need?"
This blog will help you understand the various factors that determine the minimum health insurance coverage you need to manage the rising medical costs in India.
Why is it Necessary to Have Minimum Health Insurance?
Before you determine how much health insurance do I need, let's understand why it is a necessary investment today.
Rising Medical Expenses-
The costs of medical assistance and treatments are rising constantly, making healthcare highly expensive for everyone. However, with a health plan, you can manage these expenses better without compromising on quality treatment.
Increasing Risk of Diseases -
Every day, a new disease or health condition is detected in India. A health insurance plan is necessary to battle these unforeseen medical emergencies without exhausting your savings.
Extensive Financial Protection -
A health plan provides extensive financial protection to cover medical expenses, including pre-and post-hospitalisation costs, ambulance charges, treatment fees, ambulance charges and room rent.
Tax Benefits on Premiums -
You also get tax benefits towards your health insurance premiums under Section 80D of the Income Tax Act, which helps reduce your tax liabilities.
Also Read - Benefits of Having a Health Insurance Explained
How Much Health InsuranceDo I Need In India?
How much cover for health insurance you get depends on multiple factors, including who you are buying for, your age, and more. There is no one-size-fits-all when it comes to health insurance.
Here are some key things to remember to help you plan better.
How Much Medical Insurance Do I Need For Myself?
If you are planning to calculate the ideal health insurance coverage for yourself, you need to assess the following factors -
Age-
Your age is one of the most important aspects to consider when choosing health insurance coverage. This is because the risk of health issues increases with age.
Occupation -
Your occupation always plays a major role in determining how much coverage you might need. High-risk occupations require more coverage than jobs with lower risk.
Lifestyle -
Your lifestyle habits and choices also impact the level of risk you may have in the future. For instance, higher coverage is recommended for frequent smokers or drinkers.
Existing Health Issues -
If you have any existing health concerns or a medical history of any disease, you need more coverage than an individual with no risk or existing medical issues.
Thus, depending on your analysis of the above factors, individuals are recommended to have coverage of at least ₹5 lakh to ₹10 lakh.
How Much Medical Insurance Do I Need for My Family?
When it comes to calculating ideal health insurance coverage for your family, you need to check the following factors.
Number of Family Members-
The number of family members you want to insure has a direct impact on the required medical coverage for protection. Ideally, for a family of four members, coverage of ₹10 lakh to ₹20 lakh is recommended.
Age of the Family Members -
The age of each family member also influences the minimum health insurance coverage you need. For instance, for a family of 3 with 2 people above 40 and a child above 15, a higher coverage is required than for a family of 3 with 2 people below the age of 35 and a child below 12 years.
Medical Issues of Family Members -
If any one member of your family has a medical condition, you will need higher coverage than for a family with no such health concern.
How Much Medical Insurance Do I Need for Aged Parents?
For aged parents, the type of plan plays a bigger role than any other factor. For instance,
Aged parents with a critical illness will get the best coverage under a
critical illness health insurance plan.
Aged parents with no medical issues or pre-existing diseases will benefit from a senior citizen health plan rather than a standard health insurance policy.
However, in all cases, it is important to remember that you must choose the right sum insured amount to avail of the necessary financial coverage in times of need.
You must also keep in mind your parents' age and explore plans that cover pre-existing conditions or additional age-related diseases with a shorter waiting period for added peace of mind.
Factors Affecting the Premium of Your Ideal Health Insurance Coverage
Premiums are the fixed amount you pay towards your health insurance plan to keep the ideal health insurance coverage active throughout the policy tenure. Thus, you must understand the different factors that impact your health insurance premium to make the right choice.
Age -
Your age has a direct impact on your health insurance premium. The older you are, the higher the risk of health issues, and vice versa. Therefore, the premium will be higher for older people than younger people due to their lower risk profile.
Medical History -
If you have any medical history of a recurring health issue, your insurance premium will be higher. This is because your need for ideal health insurance coverage will be greater than that of someone with no such medical history.
Family Medical History -
People with a medical history of certain health issues, like diabetes, thyroid, etc., are at a higher risk of contracting the same medical illness in the future. Thus, their premium quote will be higher, and vice versa.
Lifestyle Habits -
Your lifestyle choices, like smoking, drinking, binge eating junk, etc., also increase your premium. This is because these habits directly affect your health and increase the risk of health issues.
How to Choose the Right Health Insurance Plan?
Assess Your Needs | Compare Premiums and Policies |
The first thing to do is to assess your coverage needs. This will help you calculate the level of financial protection you need. You must also set a budget to find a plan that meets your requirements without financial pressure. | You must compare different policies based on their scope of coverage, inclusions, limitations, eligibility, and waiting period to choose the most appropriate plan that meets your needs and budget. |
Review the Policy Document | Check Customisation Flexibility |
Once you choose a plan, carefully read the fine print on the policy brochure to assess the terms and conditions applicable to you for claims. | Before purchasing any plan, check the customisation flexibility offered by an insurer and the kind of add-ons they provide for personalised coverage. Reliance General Insurance offers more than 10+ add-ons to help you customise an appropriate health plan. |
Assess Insurer | Check Customer Support |
You must also assess the insurer by checking customer reviews, claim settlement ratio, market image, and so on. Reliance General Insurance has over 5 crore+ happy customers. | You must choose an insurer that offers prompt customer service for all queries and concerns. |
Review Online Convenience |
| Check the availability of online processes for purchasing or renewing a health plan or filing a claim. This will ensure you save time and effort without compromising on necessary health coverage. |
How to Buy Your Ideal Health Insurance Coverage with Reliance General Insurance?
Step 1 - Visit our website > Explore Products >
Health Insurance.
Step 2 - On the next page, add your details and click on
View Prices.
Step 3 - Explore the available health plans on the screen, assess their inclusions and exclusions, and choose the one that meets your requirements.
Step 4 - Once you have done this, enter the required details in the space provided and modify the policy by selecting the number of people you wish to insure, individual details, and add-ons.
Step 5 - A premium quote will be displayed on the screen. If satisfactory, make the premium payment to buy your ideal health insurance coverage.
Also read -
Conclusion
Your health is your responsibility, and thus, it is necessary to assess the ideal health insurance coverage for yourself or your family. Health insurance is a must-have today, given the rising cost of medical treatments.
However, you must assess your needs and compare different plans to make the right choice.
Reliance General Insurance offers a range of individual and family floater health plans to protect you and your loved ones in times of need.
Moreover, for added satisfaction and convenience, you can buy, renew and file claims online using our user-friendly website, get 24/7 customer support, and a 100%* claim settlement ratio.
Buy Your Reliance Health Insurance today starting at just
₹243/month*!
Frequently Asked Questions
What documents are required to buy health insurance?
Proof of Identity - Aadhaar card, PAN card, driving licence, etc.
Proof of Age - Aadhaar card, birth certificate, passport, etc.
Proof of Address - Rental agreement, Aadhaar card, utility bills, etc.
Any previous medical report, especially for health condition-specific insurance purchases.
Proof of completion of the C-KYC process under the IRDAI's guidelines.
Can I change my health insurance coverage at the time of renewal?
Yes, you can modify your health insurance coverage at the time of renewal. You can upgrade your health insurance policy with more add-ons, remove add-ons if not required, change the sum insured amount, and much more.
How to reduce health insurance premiums?
Compare different plans to find the best premium in your budget.
Buy health insurance at an early age.
Opt for a family floater plan instead of individual health insurance policies.
Choose a higher deductible.
Maintain good health by consuming a healthy diet and participating in some form of physical activity.
Choose the add-ons carefully.
Quit smoking, drinking and any other risky lifestyle habits.
Explore online discounts offered by the insurer.
Do young adults need health insurance?
Yes, young adults need health insurance similar to any other age group. This is because the unpredictability of health concerns is on the rise. Moreover, young adults benefit from lower premiums due to their low-risk profile.
How much tax benefit can I get under Section 80D if I buy a health plan for myself?
The tax benefit under Section 80D for your health insurance premiums depends on your age. If you are below 45 years old, you get a tax deduction of up to ₹25,000. However, if you are a senior citizen, you get a tax benefit of up to ₹50,000.
Disclaimers:
*T&C Apply. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.
Customer Count: The total no. of customers insured data is for FY24 and has been picked up from the number of lives insured for Health, Personal Accident, Overseas Travel, Domestic Travel, Workmen Compensation and Crop Insurance, Weather LOB & Fire LOB provided by IRDAI count that is master policy count. Other than these LOBs, we have also provided data for the number of certificates issued.
Claim Settlement Ratio: This is the overall claim settlement ratio for FY 2023-24 without claim outstanding at the start of the financial year as per public disclosure of Reliance General Insurance Co. Ltd.
Premium: The premium mentioned is excluding taxes for single person aged between 5 years to 20 years with individual health policy for Sum Insured of ₹3 lakhs considering no adverse health conditions/pre-existing disease/medical conditions with waiting period of 3 years. For more details, please refer to the policy wordings. Premium used is 2,919/year converted into a month which gives us Rs.243/month (2,919/12).
Health Infinity UIN: The details mentioned above are for Reliance Health Infinity Insurance UIN: RELHLIP23120V042223
Health Gain UIN: The details mentioned above are for Reliance Health Gain Policy. Reliance Health Gain UIN: RELHLIP22229V032122
Health Super Top-Up UIN: The details mentioned above are for Reliance Health Super Top Up. UIN- RELHLIP21617V012021.
Health Global: Details mentioned above are for Reliance Health Global UIN: IRDAN103RP0001V01202324
Tax benefits: Tax benefits are subject to conditions under Section 80D of the Act and amendments thereof. The tax laws are subject to amendments/changes from time to time. Please consult your tax advisor for details.