Confused about which health insurance to buy? Here’s all you need from youth to retirement

While there may be an increase in awareness about the need for health insurance after the Covid-19 pandemic, most people are still not sure about how much, when and which type of health covers they should buy. Since the requirement for health insurance changes with age, life stage and medical inflation, it’s important to review one’s needs every few years and make the necessary changes. Not only is there a need to hike the cover with age and family size, but one must also look beyond the basic indemnity plan to cover other types of risks, such as a critical illness or death and disability in an accident.

Affordability is an important factor while buying health insurance, but do not compromise on the quality of the covers. Instead, save costs by opting for family floater, top-up or super top-up plans, and unlimited covers. Also, don’t just blindly pick a cover size of, say, Rs.1 crore, but consider all the above factors before making a decision. Here’s a guide to help you make an informed choice.

IN MID or LATE 20s

Basic needs

At this age, one is typically healthy and needs health insurance only for emergencies like accidents, or in case of a lifestyle disease, or a family history of such illnesses. “In one’s 20s, one should avoid financial stress and focus on continuity, while enjoying benefits like low premium costs and starting early to serve out the waiting periods for illnesses that may occur later in life,” says Siddharth Singhal, Business Head, Health Insurance, Policybazaar.com.

Also read: Delay in discharge from hospital remains a pain point for policyholders: Will it improve soon with insurers and hospitals coming together?

IN YOUR 30s

Cover your family
During this period, you are likely to be married and have children. Hence, a bigger family floater plan after marriage is your best option. You could buy a single, large cover, but a small, basic policy with a bigger top-up plan will be more cost-effective. It’s best to buy both the base and top-up plans from the same insurer for ease of processing during claim settlement. Buy an independent plan even if your employer offers a group health cover.

IN YOUR 40s

Critical period
This period usually marks the onset of lifestyle diseases like diabetes, hypertension, heart disease, etc. Hence, in addition to the existing plans, buy a critical illness plan, especially if you have a family medical history for specific diseases or a highly stressful job. If you have continued with the health policy for several years, your pre-existing disease waiting period would be over by now.

IN YOUR 50s

Highest risk
Your children are likely to be financially independent by this age and have their own health plans. So remove them from your family floater plan. “The pre-retirement phase is the highest risk decade and it’s advisable to opt for the maximum coverage, with sum insured ranging from Rs.50 lakh to Rs.1 crore,” says Singhal. You can also let go of the accidental disability plan at this stage.

AFTER 60

Rising expenses
At the time of retirement, port your employer’s policy to an individual plan, and if you have an independent plan, continue with it. If you don’t have a cover, it will be difficult to buy one, especially if you have a medical condition. Senior plans are also available, but these are expensive and have limitations. You could try to get yourself covered by the group plan of your children’s employer. It’s best to keep a buffer for outof-pocket expenses and medical emergencies if you don’t have sufficient insurance or if you find the premium exorbitant.