How Much Health Insurance Is Required To Cover Your Family?

Everyone wants a health insurance for families policy that is comprehensive and adequately covers their family. You can get family medical insurance for:

• You and your partner

• Your children

• Your parents

• Additionally, some plans cover in-laws, siblings, and other extended family members. You can choose family floater health insurance plans to cover your entire family.

How Much Health Insurance Is Required?

While there is no ideal sum assured for a medical insurance policy for an individual or their family, there are two widely accepted market rules regarding its quantum. To begin, as an individual, your health insurance should cover at least 50% of your annual income.

Second, the insurance policy should, at the very least, cover the cost of a coronary artery bypass graft in a hospital of your choice or at least 100% of your healthcare expenses over the previous three years. A simple but useful formula is:

Health insurance coverage = 50% of income + 100% of healthcare expenses in the last three years (hospitals)

As a result, an individual looking for a medical insurance plan in his or her early years should always opt for a health cover that exceeds 3 lakhs. Most personal finance experts recommend a minimum of Rs 5 lakh in health insurance. In Health Insurance for families, you can have a similar sum assured to include your family members.

The common sum insured is shared by a single family, so most policyholders in India cover their families for around Rs 7-9 lakhs. Choose a sum insured of at least 10 lakhs for two adults and two children. Individuals classified as high-risk should obtain a comprehensive high-coverage health insurance for families policy.

Factors To Keep In Mind When Selecting Health Insurance For Families

When selecting health insurance for families plan, keep the following factors in mind: 

• The plan that provides the most protection

• The ability to renew for an indefinite period of time is also an important consideration.

• Investigate the network of hospitals affiliated with your insurance provider to help you obtain cashless care.

• Choose a medical insurance plan with a short waiting period, after which pre-existing conditions will be covered in your family health plan.

• Consider the policy's exclusion list when purchasing health insurance for your family.

• Premium discounts to reduce your monthly outlay.

• The value-added benefits of each plan.

• A way to add new people to the plan.