While purchasing a health insurance plan, policy coverage is one of the most important considerations. After all, it is the amount that the insurer will pay against your medical expenses in a year. Select the coverage lower than what you should have will require you to pay more from your pockets if you need medical care and keeping the coverage unnecessarily higher would result in higher premiums.

So, how to make the decision? There are a few factors that can help you select the right health coverage.

1. Your Age

One of the biggest considerations when selecting policy coverage is your age. As you grow older, you are at a higher risk of suffering from a medical condition. Moreover, you will also be required to factor in inflation. So, if you are young and healthy, start with a Rs. 5-10 lakhs coverage. This can be increased by up to 10%-15% every 2-3 years. Invest in a policy as early in life as possible as the premium is lower when you are young.

2. Lifestyle

Your lifestyle also plays a role in the decision. If you have a stressful life, there is a higher possibility of you suffering from critical illness in the future. Even sedentary lifestyle comes with a high probability of problems like obesity, diabetes, and cholesterol. So, if you do have a busy and high-stress life, it is better to go for a higher coverage as compared to someone who has a healthier and more active lifestyle.

3. Type of Health Insurance Policy

If you are going for a family floater plan, you’d surely need more coverage as all the members of your family would be covered under a single policy. Select the coverage as per the number of members in your family and their chances of suffering from medical conditions. Moreover, if you have senior parents in your family, you should go for higher coverage as they can be prone to a host of critical illnesses.

4. Affordability 

Make sure that the policy is affordable as the coverage is directly proportional to the premium. The higher the health cover is, the higher will be the premium too. You should not select a coverage whose premium you cannot easily pay every month/year. Take a good look at your finances and go for coverage whose premium you can easily afford.

Consult an Insurance Advisor If Required
Most insurance providers do assign an advisor when you apply for a policy. If you cannot select the coverage yourself, you can always consult an insurance advisor for the same.

Learn more about different Health Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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