You need a life insurance policy when your family depends on you financially. Working people with ageing parents or families with children to take care are typically the people who need a life cover. The single young or the retired don’t usually make the cut for life insurance. However, the same parameters do not apply when it comes to health insurance: everybody needs to have this policy.
In the prime of your youth, medical illness maybe an unlikely event but not accidents; they can land you in a hospital too and you may have to shell out a hefty sum given the rising medical treatment costs. And as you grow older, you become more susceptible to ailments, especially the ones that are linked to your lifestyle.
A health insurance policy is a must because you don’t want to pay hospital bills out of your pocket. This policy pays for hospitalisation, which includes expenses such as room rent, surgical procedures, nursing expenses, doctors’ fees, cost of medicines and diagnostic tests.
Health insurance is renewable for life, but unlike life insurance where the premiums don’t change, health insurance premiums increase as you grow older.
To be aware that health insurance is important is only half the work done. Buying a suitable health plan and, more importantly, deciding the level of cover that is essential to close the loop is equally important.
There are no fixed answers to how much health insurance cover you need as there are too many variables that one needs to factor in such as where you live, hospitals you go to, how many family members you have included in the policy and your age.
In order to help you get started on thinking about health insurance: why you need it, what kind of policies you need to look at and how much cover you need to buy, Apollo Munich Health Insurance Co. Ltd put together a set of data and rationale behind it .