Health Insurance is a saviour when you or your immediate family face any medical issues and need financial backup. It helps to save money on various expenses incurred from hospitalization and other Out Patient Department (OPD) expenses. However, there are various things that you should keep in mind before purchasing a health insurance cover. In order to evaluate how much health insurance cover an individual needs, the following factors should be taken into account:
Factors to be Considered while Deciding Health Insurance Cover for you:
- Premium Payment - Ability to pay premium is an important factor while deciding the extent of health insurance cover that you will need. When you choose a higher sum assured and more benefits, the premium will also increase. Individuals should assess their ability to pay the premium and then choose the type of health insurance policy they need. The health insurance policyholder can avail a limited cover at an affordable premium and increase the extent of cover at a later stage.
- Annual Income Percentage - Annual income is directly proportionate to the health insurance cover. The annual income of the proposer is considered by insurance providers, in the process of determining the maximum health insurance cover he/she is eligible for.
- Family History - Family history is another factor that affects your health insurance cover. The insurer will look at the history of health problems and diseases contracted by your family members in order to evaluate the risk of the insured contracting the same. Individuals falling under the high-risk category should get a comprehensive health insurance policy.
- Age of the Insured - Another important factor that will affect your health insurance coverage is your age. Individuals who have bought health insurance policies while young, can avail a discount on premium. However, individuals over 45 years of age would have to pay more premium for health insurance coverage since the health risks involved are higher.
- Type of Hospital - The health insurance cover is also affected by the grade of hospital where you choose to be hospitalized. Based on the grade of the hospital, different rates are charged for the same treatment. Thus, the amount of health insurance cover that is needed has to be determined by calculating the expenses that might be incurred from the hospital of your choice.
Health Insurance Cover Based on Requirements:
- Supplement to Health Insurance Cover offered by Employer - Most companies offer health insurance over to its employees. However, this will be in effect only until the last date of employment with the company. Since it is risky to depend only on the health insurance cover offered by your company, you also have to take an alternative health insurance policy for yourself and/or your family. This would help in the face of any unforeseen event such as a layoff, unemployment, job change, etc. which will cause the health insurance policy offered by the employer to cease. Availing a health insurance policy in addition to employer health insurance would help you to be prepared for any medical emergencies.
- Tax Benefit - If you are availing a health insurance policy mainly for the purpose of availing tax benefits, then you need not take a comprehensive health insurance cover. You can evaluate the amount of tax deduction you wish to avail through the policy and then purchase one that meets this requirement.