According to the National Sample Survey Office (NSSO), hospitalization cost has increased by 10.7% from the year 2004 to 2014. Such a steep rise in healthcare expenses needs introspection of your existing health insurance policy. To help you decide and assess the need of sufficient health cover, check the following points:
1. Evaluation
It is of utmost importance to know your actual needs and then decide the amount that you must keep aside for insurance. Hence,
- It is necessary to take into account family history for any illnesses like diabetes, heart ailments, cancer, etc. that could affect you at any point in life.
- The policyholder who holds a family cover needs to include every member’s existing health issues and anticipate the ones that may arise in the future.
- For a couple planning a baby, it is wise to consider the expense of maternity and check whether it is covered under the existing policy.
- Note the expenses you incurred in the previous years and then decide on the sum assured for the next term.
2. Rising Costs
Even a decent health cover might prove insufficient in overcoming the high medical expenses. Supporting this fact, consider the NSSO report, which states that in the first half of 2014, Indians living in the urban area spent an average of ₹24,436 in private hospitalization and treatment.
This also means that an individual with ₹2 lakh insurance policy might have to pay out-of-the-pocket if he/she falls ill for a long time or has to undergo prolonged treatment. Hence, raising your cover in accordance with the upsurge of expenses is vital.