Financial PlanHealth Insurance

How Much Health Insurance Coverage Do You Need


When there is a lot of options available in the market today that offer tailor-made health insurance plans to the people the common question that is bound to arise is how much coverage is actually enough to lead a secured life. The first thing that people need to realise about health insurance coverage is that a single type of coverage is not suitable for every person. When it comes to health, everybody’s needs and requirements tend to differ; these differences must be kept in mind when we compare health insurance coverage. Read the below-mentioned factors carefully as they are the key factors to determine how much health insurance coverage a person really needs irrespective of the health insurance rates.

Age of the Buyer

The age of the intended policy buyer is probably the most crucial factor for deciding their health insurance coverage. Old age brings along with itself many age-related ailments and also tends to aggravate the existing ones. Keeping this in mind, the premium set for the policy buyers over forty is comparatively more than those who are in their twenties and the thirties. People who opt for a health insurance plan early in their life tend to enjoy a greater coverage at a much lesser premium.  But again, young people are mostly fit and free of major health issues which make it easier for them to manage even in a policy plan that has minimum coverage.

The Family History of Illnesses

The history of disorders that are heredity in nature is taken into an account while choosing a particular health insurance plan. Most health insurance companies tend to evaluate the health risks of an intended policy buyer and also note the medical history of their family before suggesting the best health insurance policy for them. They do the evaluation in order to account for the risk of complex ailments like cancer, heart disorder, renal failure, diabetes hypertension, etc. that the policy buyer may suffer in their later life and to offer a cover accordingly.

Also Read: Health Insurance 101: Cashless Mediclaim Policy


Sedentary routine, intake of unhealthy food, ill-habits like smoking and consumption of intoxicating substances are the causes that trigger various lifestyle disorders like diabetes, obesity, stress, hypertension, cholesterol and others. Policy buyers shouldn’t overlook their symptoms and should take into consideration their daily lifestyle and its impending consequences at the time of purchasing a health insurance cover so that they can be mentally and financially prepared in terms of coverage.

Preferred Hospital

A person’s health insurance coverage also depends on their preferred hub of treatment and other medical facilities. For example, the cost of treatment availed at a public hospital would be comparatively lesser than that of the treatment availed at a first-rate private hospital even though the treatment offered by both is the same. Depending on the preference of treatment a policy buyer should choose coverage.

Also Read: Can health Insurance be claimed during international travel?

Affordable Plans

Most health insurance policies with a higher sum assured come with an expensive premium which may not be affordable for everybody. Therefore, one should consider one’s financial standing and choose the best health insurance according to it.

Policy buyers may also compare different health insurance rates with the help of health insurance premium calculator and opt for the most suitable one with a good cover for them as per their need.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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