Get Protection + Monthly Income after Retirement

Factors That Affect How Much Health Insurance You Need

Jun 03, 2018 | 2 years ago | Read Time: 3 minutes | By iKnowledge Team

Health expenditure costs are one of the key reasons of poverty in India, and given the crippling pressure medical care can have on your earnings and savings it is imperative to invest in a good health insurance policy. When you buy health insurance a key aim is to protect your families from the huge burden of paying from hospitalisation bills, doctors’ visits, surgical fees, tests or even certain day-care procedures.

With innumerable insurance plans available to you online and otherwise, one can often be confused about how much coverage is needed.

There are several factors, including your age, income, cost of premium, family history of medical illnesses amongst several others that influence the answer to this question. Most importantly it is critical to understand an individual’s need of health insurance changes from time to time, and it is equally important to review and update your coverage accordingly.

Here are some of the key factors that should go into helping you decide how much health insurance do you really need:

Factor# 1: Premium Payment

Several market experts and people around you will often advise to buy “as much health insurance as you can,” and while that sounds prudent, your ability to decide how much insurance you can buy will be largely dependent on how much premium you can pay. While plans with higher sum assurances and more benefits are better, they often come with a hefty price tag. The first step in deciding how much cover you should get is assessing how much premium you will be able to pay. Mostly at affordable premium rates, individuals can avail limited cover, but then slowly increase the cover as their ability to pay premiums increases.

Factor# 2: Annual Income

Insurance providers often directly consider your annual income in deciding your health insurance cover, as your income and the cover are directly proportionate. Often companies will use your annual income as a guidepost in determining the minimum and maximum coverage you can buy.

Factor# 3: Age

A big factor that influences how much health insurance you need is your age. While you may think you will increase your health insurance coverage as you grow older, as there is a higher risk of diseases and you require greater medical assistance, most companies charge a higher premium when you are older due to the risks attached. Hence, it is advised to buy health insurance policies when you are younger with good cover, as this ensures you will not serve out the waiting period. Additionally, if you only make the plunge to buy health insurance when you are older, companies may reject your application due to risks involved or allow you to only avail policies with a lot of exceptions.

Factor# 4: Lifestyle

Just as your lifestyle influences your health, it also influences the amount of health insurance cover you should buy. If you are diabetic, suffer from hypertension or have a very stressful job, you are more likely to suffer from significant medical issues, and hence, it is advised to buy a larger cover. Individuals with family history of illnesses such as high blood pressure, heart diseases and others will also need a much higher insurance cover. Additionally, other factors such as the nature of your work, eating habits, smoking habits as well as body weight all have a direct impact on your health and wellbeing in both the short and the long term and should all be accounted when you decide how much coverage you should buy.

Factor# 5: Where do you live?

One should consider the cost of medical care in your area when deciding your insurance cover. According to data provided by the Insurance Information Bureau, the average insurance claim size in Hyderabad is Rs 33,192, while in bigger cities such as Mumbai and Delhi the average is around  Rs 46,806 and Rs 40,179, respectively. Similarly, in poorer states such as Bihar and Jharkhand, the average claim size is between Rs 9,000 and Rs 11,000.

Whether you decide to buy health insurance online or otherwise, it is very important to think about all these factors before deciding how much insurance cover you will need.

There is no “right” amount of insurance cover that one can buy, and in fact, due to rising costs of medical care and the change in your lifestyle, job, or other factors the amount of health insurance you need changes considerably from time to time.

The health insurance policy you buy today may not be sufficient to cover your health costs in a few years, and hence, you should continually review and evaluate the amount of coverage you need if any of the other factors in your life change. Often policies such as the iTerm Plus Plan offered by Aegon Life, also offer you built-in benefits such as in case of critical illness and accidental death, ensuring your loved ones are safe. So go ahead, and get insured today!

Advt. no.: IA/MAY 2018/4002


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
How To Start Smart For Your Kids’ School?
Thinking About Going On A Diet? Ask Yourself These Questions Before You Do
36 Critical Illness Covered. Calculate your Premium!
Do You Smoke?

Date of Birth

Your Monthly Premium for Aegon Life iTerm Insurance Plan