Is there ever a right amount or coverage that one needs to look at?
The right amount of coverage depends on several factors like the type of hospital you prefer, current age and health conditions of yourself and your family members, your affordability etc. Healthcare costs vary significantly by hospital and the facilities opted. For example, the cost of a knee replacement surgery nearly doubles if you opt for an imported implant instead of an indigenous one. This way, the size of your Health Insurance should be linked to your income and lifestyle.
While there is no ideal sum assured for Health Insurance policy for an individual, there are two market-broadly-accepted rules on its quantum. First, your health cover should be at least 50% of your annual income. And second, the insurance cover should at least cover the cost of a coronary artery bypass graft in a hospital of your choice. Most personal finance experts recommend a minimum health cover of Rs 5 lakh. You can have similar sum assured as a FAMILY FLOATER to include your family members.
The rising costs of medicines and treatments may render your individual Health Insurance cover inadequate to cover all expenses. The basic Health Insurance policy may not cover expenses related to recovery phase such as extensive nursing care, counseling sessions, rehabilitation. But you can substantially enhance your health cover – over and above your basic policy – with tools like Riders and Top-Ups without corresponding increase in the premium.
But the bottom line is you need to understand each inclusion of your policy and see if that is applicable or required for you and your family, accordingly negotiate with the insurance provider and buy your insurance!