You should decide on the health cover amount based on the following consideration:
(a) LifeStage: Cover should be sufficient to accommodate natural additions; like a spouse or kids. You can increase the cover subject to the insurer's approval.
(b) Inflation: A routine procedure costing ₹1L today will cost ₹20L more after 15Y. A cover that seems sufficient today will become inadequate with rising cost.
(c) Lifestyle: A knee replacement cost will vary from Govt to a private hospital. One should check the average cost of a room in their preferred hospital. Hospital charges are anchored based on the room a patient takes.
There is no ideal health cover, but generally, most advisors consider:
(1) Health cover should be at least 50% of your annual income.
(2) Coverage should be able to cover the cost of a Heart transplant in a hospital of your choice. Usually costs ₹5-8 lac.
