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Many of us may already have health insurance policies, while many others are planning to purchase new ones.
Health insurance is a type of insurance that covers medical expenses for illnesses, injuries, and other health-related issues. It helps protect individuals and families from high healthcare costs.
A common question on the minds of those looking to buy a policy is, “What coverage amount should I choose for my health insurance policy?”
According to a report by ACKO Insurance, the average claim amount for health insurance increased by 11.35% in the financial year 2023-24, rising to ₹70,558. This is notable compared to ₹62,548 in the previous year, 2022-23.
The report indicates that, on average, men received ₹77,543 in claims during 2023-24, while women received ₹69,553. It’s important to note that these figures do not include claims for maternity expenses.
So, how much coverage do you really need to safeguard your health?
Table of Contents:
- Medical Expenses: An Unstoppable Increase!
- The Alarming Rise of Heart Disease and Cancer
- Coverage Amount
- Don’t Let Your Savings Drain!
- Full Family Health Insurance: Secure Every Member!
- Final Takeaway
Medical Expenses: An Unstoppable Increase!
In the context of health insurance, a significant reason for the increase in claims is the rising costs of healthcare.
While consumer price inflation in India hovers between 6% and 7%, can you believe that medical inflation stands at a staggering 14%? With medical procedure costs, medications, and medical equipment prices skyrocketing, how can anyone afford to ignore this trend?
For instance, did you know that the cost of angioplasty for heart conditions was ₹1.15 lakh in 2018? Fast forward to 2024, and that expense has surged to between ₹2 lakh and ₹3 lakh.
What will happen if this trend continues? Experts predict that by 2030, it could reach between ₹6 lakh and ₹7 lakh. Similarly, consider the cost of kidney transplant treatments, which has doubled.
It went from ₹5 lakh to ₹8 lakh in 2018 and has now increased to between ₹10 lakh and ₹15 lakh in 2024. If this trajectory continues, can you imagine the cost reaching ₹20 lakh by 2030?
With healthcare costs rising at this alarming rate, how prepared are you to manage your medical expenses? Are you confident that your current health insurance will be sufficient to cover these increasing costs?
In the past year, the highest claim amount for heart disease treatments reached ₹1.1 crore. Meanwhile, the maximum claim for kidney disease treatments amounted to ₹24 lakh.
These figures highlight the rapidly increasing costs of medical treatments.
Interestingly, did you know that, on average, 74% of the claim amounts are received through corporate health insurance policies?
With such significant payouts for critical treatments, how prepared are you to navigate the rising costs of healthcare? Are your current insurance plans equipped to handle these escalating expenses?
The Alarming Rise of Heart Disease and Cancer
The report highlights that hospital admissions for treatments related to heart disease and cancer (in both early and advanced stages) have significantly increased compared to previous years.
As these conditions become more prevalent with age, how concerned should we be about our health?
Notably, among those admitted for treatment, did you know that 3.81% of cancer patients fall within the age group of 31 to 40 years, while the percentage rises to 10.61% for those aged 41 to 50 years?
In comparison, among patients with heart disease, only 2.24% are in the 31 to 40 age group, while 6.88% are aged 41 to 50 years.
With these alarming trends, how prepared are you to address the health challenges posed by the increasing rates of heart disease and cancer? Are you taking proactive steps to ensure your health as you age?
Coverage Amount
The coverage amount of corporate health insurance policies offered by employers tends to be lower, often failing to fully cover hospital expenses. As a result, isn’t it essential to consider obtaining a personal health insurance policy?
The amount of coverage you need depends on various factors, including family size, health conditions, and healthcare costs in your area. It’s advisable to assess your family’s healthcare needs to determine an appropriate coverage amount
Otherwise, how prepared are you to bear the burden of high medical costs out of your own pocket? Are you willing to risk financial strain when unexpected health issues arise?
Don’t Let Your Savings Drain!
To avoid paying large sums out of pocket, wouldn’t it be wiser to consider a personal family floater policy with a coverage amount of ₹3 to ₹5 lakhs? If you rely solely on a corporate policy, aren’t you leaving yourself exposed to higher costs?
A top-up or super top-up policy can provide the extra cushion you need, especially when your basic coverage falls short.
But which option should you choose? A top-up policy kicks in after you exhaust the base coverage, while a super top-up allows you to claim multiple times, even after the basic policy limit is reached.
Although it comes with a higher premium, wouldn’t you agree that the extra cost is worth the peace of mind?
Have you considered factors like the size of your family, their health conditions, and the cost of healthcare in your city? The larger your family, the greater the likelihood of hospital visits due to illness or accidents.
And if there’s a family history of serious conditions like heart disease or cancer, shouldn’t you be even more cautious? Medical costs in larger cities are significantly higher-shouldn’t your coverage reflect that?
For those in big cities, wouldn’t a family floater policy with ₹10 to ₹15 lakhs in coverage make more sense? In smaller towns, perhaps ₹8 lakhs would suffice, and for rural areas, ₹5 to ₹6 lakhs should do.
After all, isn’t it better to be prepared than to face huge medical bills later?
Trying to save a few thousand on premiums today could cost you lakhs tomorrow. So, the real question is: how prepared are you for the unexpected?
Full Family Health Insurance: Secure Every Member!
It’s essential to have health insurance for every member of your family. Why? Because if anyone falls ill or meets with an accident, the medical expenses could significantly impact your family’s financial stability.
Health insurance is crucial for families as it helps mitigate the financial burden of medical expenses. In the event of unexpected health issues, having coverage ensures that family members receive the necessary care without straining finances.
For those working in large corporate firms, IT companies, or even central and state government organizations, group health insurance is often provided. This group policy may also extend coverage to your family members.
But when opting for personal health insurance for the whole family, wouldn’t a family floater policy be more convenient? With a floater policy, all family members are covered under a single plan, and claims can be made on a rotation basis as needed.
However, did you know that in a floater policy, the premium is based on the age of the oldest family member? This could mean higher premiums if you have elderly members in the family.
So, wouldn’t it be wiser to consider a separate policy for those over 50 or 55 years old, especially for senior citizens? By doing so, you could manage costs more efficiently while ensuring that everyone in the family is well-protected.
Isn’t it worth considering these factors before choosing the right coverage for your family’s health and financial security?
Final Takeaway
In today’s fast-paced healthcare landscape, having the right health insurance for your family is non-negotiable. With rising medical costs, don’t leave your financial stability to chance.
Opt for a family floater or a top-up plan to fill any gaps in coverage. Remember, investing in comprehensive health insurance today means peace of mind tomorrow. Don’t wait for a health crisis-act now to protect your loved ones!
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