3 Steps for Choosing a Health Insurance Plan with the Right Sum Insured

Healthcare costs can put a significant strain on your finances, especially in the event of a medical emergency. That's why it's important to ensure that you have adequate coverage and protection in case anything unexpected happens. One of the ways to ensure this is by selecting the correct sum insured for your health insurance plan. This article will take you through three simple steps to determine the correct sum insured for your health insurance plan in India.

Step 1: Assess Your Healthcare Needs And Risks

The first step in determining the correct sum insured is to assess your healthcare needs and risks. Consider your age, lifestyle, and medical history to identify potential health risks and expenses. For example, if you have a family history of medical conditions, you may be at a higher risk of developing similar health problems. Additionally, your lifestyle, such as smoking or lack of exercise, can increase the risk of health issues like heart disease, diabetes, and cancer.

Determining the expected healthcare expenses for you and your family is also essential. This can include the cost of doctor consultations, diagnostic tests, medications, and hospitalisation. If you have children or elderly parents as dependents, you may also need to factor in their healthcare expenses.

Step 2: Evaluate The Healthcare Costs In Your Area

The next step is to evaluate the healthcare costs in your area. Research the average healthcare costs in your city or state to understand the potential expenses you may incur. This can include the cost of hospitalisation, surgeries, and treatments. You would also need to factor in the cost of diagnostic tests, medications, and consultations.

By understanding the healthcare costs in your area, you can make an insightful decision about the sum insured you would need for your health insurance plan. This will ensure adequate coverage for potential healthcare expenses and avoid unexpected out-of-pocket costs.

Step 3: Compare And Choose The Right Sum Insured

The final step is to compare and choose the correct sum insured for your health insurance plan. Compare the potential healthcare expenses and costs with different sum insured options to find a plan that fits your needs and budget. If you select a higher sum insured for your health insurance, the insurance company will compensate you with a greater amount in the event of a claim. However, this also means that you will have to pay higher premiums for the increased coverage. Finally, consider the coverage benefits and exclusions for each plan to ensure that you have adequate coverage for your healthcare needs.

It is important to note that the cheapest plan may not always be the best option. It is crucial to balance the premium cost with the coverage benefits to find a plan that fits your healthcare needs and budget.

Conclusion

It is essential to reassess your healthcare needs and sum insured regularly. As your health and lifestyle change, so will your healthcare expenses and coverage needs. Regular reassessment can ensure adequate coverage and protection for your changing healthcare needs. By evaluating your healthcare expenses and coverage needs on a regular basis, you may be able to adjust your plan to better suit your current needs and reduce unnecessary expenses.

When looking to buy health insurance, it is necessary to research and compare your options to find the best plan for your needs. You can buy health insurance online or through an insurance agent to find a plan that fits your budget and coverage needs, such as pre-existing diseases, coverage for elderly parents, OPD expenses and more.

ManipalCigna, a prominent player in the health insurance industry, provides a diverse range of health insurance plans that cater to all your healthcare needs.

FAQs:

Q. How do I choose a sum insured for health insurance?

A. The steps for determining the correct sum insured for health insurance are:

Step 1: Assess Your Healthcare Needs and Risks

Step 2: Evaluate the Healthcare Costs in Your Area

Step 3: Compare and Choose the Right Sum Insured

Q. What are the steps while choosing a health insurance?

A.  Choosing a health insurance plan can be overwhelming, but it's an important decision that requires careful consideration. The first step is to assess your healthcare needs and budget. In the second step, you should research and compare different plans, while considering factors such as deductibles, provider networks, and coverage for prescription drugs and pre-existing conditions. For the third and final step, it is important to read the fine print, check the insurer's reputation, and make an informed decision.

Q. What are the three most important types of insurance?

A. The three most important types of insurance are health insurance, life insurance, and auto insurance.

Q. What is sum insured in health insurance?

A. Sum insured in health insurance is the maximum amount the insurance company will pay for medical expenses in case of a claim. It is the total coverage available to the insured for a specific period.

Q. How does the age of the insured impact the sum insured selection?

A. The insured's age impacts the sum insured selection as older individuals may have higher healthcare expenses and may need a higher sum insured to cover potential medical costs.

Q. Can I change the sum insured amount later?

A. Yes, you can usually change the sum insured amount later by requesting a modification to your health insurance policy. However, it is essential to note that when the sum insured increases, it is likely that there will also be an increase in the premium amount. However, this may be subject to certain terms and periods or a limit on the number of changes you can make.

Q. How does the location impact the sum insured selection?

A. The location can impact the sum insured selection as healthcare costs may vary across regions or cities. Therefore, it is important to evaluate the healthcare costs in your area to determine the appropriate sum insured that would cover your potential medical expenses.

Q. Can I choose a higher sum insured than my healthcare needs?

A. Yes, you can choose a higher sum insured than your healthcare needs, which  may result in higher premiums. Hence, it is important to balance adequate coverage and affordability to ensure that you pay only what you need for your health insurance policy.