Health insurance has become a must for every one these days. But it comes at a premium. It is gaining traction, more so since Covid outbreak, as individuals are looking for avenues through which they can be financially sure of meeting any health emergency. However, it may be difficult to decide how much health insurance sum assured you need.
In health insurance, sum assured refers to the maximum amount of money the policy offers to provide in case of an emergency. As treatment costs are rising, experts say that one should be careful while choosing the right amount of cover. A small sum assured may leave you disappointed in case of emergency. Even a very large sum assured, if not actually required, may make you unnecessarily pay very high premiums.
ALSO READ | Experts suggest what percentage of salary you should spend on Life and Health Insurance
Building financial security to withstand medical emergencies is a prerequisite for a good health insurance plan. The Sum Insured amount should be high enough to provide a decent cover for all scenarios, while also being affordable, ”said Mayank Kale, CEO and Co-founder of Loop.
The amount that a person needs to choose as a sum assured depends on the type of policy and the number of dependents covered under the policy.
“One must carefully choose their sum assured amount at the time of buying or renewing a Health Insurance plan.Now, the question is how much sum assured should be sufficient for meeting an emergency. Well, the answer to this question depends on the type of policy chosen and the number of dependents of the insured, ”said,” Ankit Agrawal, CEO and Co-founder of InsuranceDekho.
Experts said that if a person is opting for an Individual Health Insurance plan, they must avail of minimum coverage of Rs 5-10 Lakh to keep themselves shielded against any possible emergency which may incur at any point in time.
If one wishes to opt for a family floater plan, the amount of minimum sum insured for meeting emergencies will primarily depend on the number of family members included under the plan.
“In the case of a typical family floater plan which provides coverage for oneself, spouse, and 2 children, the person must get a minimum sum assured of Rs. 20-30 Lakhs to be ready for combating uncertainties of life. However, ideally, an individual must go for a Family Health Insurance plan featuring a sum insured of Rs. 1 Crore to be able to comfortably meet any emergency, ”said Agrawal.