Health Cover: How Much Do You Need?
Health Is Wealth
We’ve heard it before - health now is better than hospital bills later.
But the pandemic has shown us that being prepared financially for a medical emergency is non-negotiable.
Invest In Your Health
We don’t mean eating well and working out - we’re talking about having a financial cache set aside for all health-related problems and emergencies.
You need a health cover!
Health Insurance
It is insurance coverage that pays for medical & surgical expenses incurred by the policyholder due to illness.
It is reimbursed or paid directly to the hospital by the insurer.
How Much?
How much health insurance you need depends on factors like inflation, whether it’s a family or individual plan, whether there are add-ons for accidents, maternity critical illnesses, etc.
Evaluate Your Company Health Cover
If your company offers health cover, evaluate if it is enough to meet your needs - and if you need more, top it up. Or take extra cover individually.
What You Need
In general, a sum of 5-10 lakh is enough for a young family - but you need to top it up regularly as medical costs escalate, and situations like the pandemic will only drive up costs.
Always Be Prepared
Your health cover is part of your emergency fund - so make sure it’s always in force by paying your premiums regularly.
No Cover? Add More To Your Emergency Fund
If you don’t have health insurance, you need to plan for more cash in your emergency fund - as we suggested, 5-10 lakhs only for medical expenses.
Make Sure It’s Adequate
Battling COVID or any illness can run into lakhs - so make sure your health cover or emergency fund is truly truly sufficient for yourself and your dependents.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.