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Is Rs. 10 Lakhs Medical Coverage Enough?

Team AckoOct 25, 2022

Life is all about finding the right balance. The perfect amalgamation of work-life balance, needs and wants, savings and spending. And, the same approach applies when shopping for medical insurance. One of the big and important questions is how much coverage is enough when buying health insurance?

Choosing inadequate coverage can leave your family under insured, too much coverage, and you’re paying a bit too much every year than you need to. At first, you may think that Rs. 10 lakhs medical coverage might sound a lot more. So, what is the right or perfect health insurance coverage amount?

In this article, we’ll go through the basics of health insurance and understand if an Rs.10 lakhs health policy can provide adequate protection in case of a medical emergency.

Is Rs. 10 Lakhs Medical Coverage Enough?

Contents

Is Rs. 10 lakhs health insurance adequate?
What is the right amount of coverage that one needs to opt for?
Consider including riders and top-ups
How much does an Rs. 10 lakhs health insurance policy cost?
- In a nutshell
Frequently asked questions

Is Rs. 10 lakhs health insurance adequate?

Rs. 10 lakhs is an amount so massive that it feels like a huge sum insured to many of us at first glance. But, once you understand your requirements and do the math, Rs. 10 lakhs may feel a whole lot smaller.

Medical costs have skyrocketed over the years, especially after the deadly COVID-19 pandemic. Individuals without any health insurance might have borne the brunt of high medical expenses from their pockets. Even for those who did have health insurance, the coverage amount (sum insured) might have been insufficient to meet high medical costs.

Securing your family with comprehensive health insurance is a significant step while buying a well-balanced health insurance policy. You can choose between the Individual and Family Floater plans based on your requirements to protect yourself and your loved ones from unforeseen medical emergencies.

One of the thumb rules while accessing the sum insured amount (coverage amount) is that the coverage should be 50% of your annual income. Additionally, the sum insured amount should cover the cost of expensive treatments such as coronary artery bypass graft. This way, you can balance between higher coverage and mitigate medical costs that may arise due to costly medical treatments.

What is the right amount of coverage that one needs to opt for?

The ideal sum insured or coverage in health insurance depends on several important factors. You must consider these factors before finalising the sum insured amount.

Location
Health care expenses in your locality
Type of hospital you prefer
Current age
Health conditions of the beneficiaries
Your affordability
Your income and lifestyle

Consider including riders and top-ups

The rising healthcare costs and expensive treatments may leave your base health insurance plan inadequate to cover all medical expenses. The primary plan may not cover pre- and post-hospitalisation expenses such as nursing care, rehabilitation, counselling sessions, etc. However, you can enhance the plan with riders and top-ups with a slightly higher premium.

Riders are add-on covers that provide coverage for specific treatments or medical care. You can also opt for top-ups when you think that a higher coverage amount is required to mitigate higher expenses for critical illnesses such as heart surgery.

How much does an Rs. 10 lakhs health insurance policy cost?

Several factors determine the cost of a health insurance plan.

The type of policy
Age
Location
Lifestyle
Medical history

Go online and use the internet to compare and review the benefits and features of the policy along with the inclusions and exclusions before you finalize the best health insurance policy for your family.

In a nutshell

With rising healthcare expenses, it is increasingly becoming difficult to bear the costs. So, is Rs. 10 lakhs medical coverage enough? As mentioned above, you need to ascertain your requirements based on your income, existing health conditions and the coverage required for your family. What may be enough for today does not mean it is sufficient for the future. Hence, choose a health insurance plan that covers your current and future needs.

Frequently asked questions

Here are some of the common questions about health insurance coverage.

What does it mean to be underinsured in health insurance?

Underinsured means that you lack enough protection provided by your health insurance policy. This means that you may have a lower sum insured amount when you need it the most. It also means that your policy does not have enough coverage, and it may not cover specific ailments or treatments you may need in the future.

How do I avoid the risks of underinsurance?

Here are some tips to avoid the risks of under insurance.

Make an effort to assess your needs.
Choose an adequate sum insured amount.
Understand the exclusions and inclusions of the plan.
Seek professional help when you are in doubt.

Why is choosing the correct sum insured amount important?

Here are the reasons why you should choose a sufficient or a higher sum insured amount.

It increases the amount you have to pay in case of medical emergencies.
It keeps your savings intact.
It reduces your stress in medical emergencies.
In the case of a Family Floater plan, a higher sum insured is essential since the entire family shares it, beneficial when you raise multiple claims during the policy period.

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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.